Gilead Sciences ((GILD)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Gilead Sciences’ latest earnings call conveyed a positive sentiment, primarily driven by robust growth in its HIV portfolio and the successful launch of new products like Yeztugo. Despite facing challenges in the oncology and cell therapy segments, the company remains optimistic about its revenue expectations, thanks to strong commercial execution and strategic advancements.
Strong HIV Portfolio Performance
Gilead Sciences reported impressive growth in its HIV therapies, with Biktarvy experiencing a 6% year-over-year increase and Descovy seeing a 20% rise. Livdelzi also showed remarkable progress with a 35% sequential growth, contributing to an overall 4% increase in HIV sales compared to the previous year.
Yeztugo Launch Success
The launch of Yeztugo has been a significant success for Gilead, achieving 75% payer coverage nearly three months ahead of schedule. This new HIV prevention therapy contributed $39 million in sales for the third quarter, indicating a strong start and promising future for the product.
Rising Revenue Expectations
Despite a $900 million headwind from the Medicare Part D redesign, Gilead has raised its full-year HIV revenue growth expectations to approximately 5%. This adjustment reflects the company’s confidence in its strategic initiatives and market performance.
Livdelzi Growth
Livdelzi reached a significant milestone with sales surpassing $100 million for the first time, marking a 12% year-over-year growth in the liver portfolio. This achievement underscores the product’s growing importance in Gilead’s therapeutic offerings.
Trodelvy Advancements
Trodelvy has shown promising results, with a 38% reduction in disease progression or death in first-line metastatic triple-negative breast cancer patients. Regulatory decisions are anticipated in 2026, potentially opening new avenues for Gilead in the oncology market.
Decline in Oncology Revenue
Gilead faced a decline in oncology revenue, attributed to competitive pressures and unfavorable inventory dynamics affecting Trodelvy sales, which were down 2% sequentially. This highlights the challenges the company faces in maintaining its market position in oncology.
Cell Therapy Sales Decline
The cell therapy segment experienced an 11% year-over-year and sequential decline in sales, with expectations of a 10% decline for the full year 2025. Competitive headwinds continue to pose challenges for this segment.
Impact of Medicare Part D Redesign
The redesign of Medicare Part D has created a $900 million headwind for Gilead’s HIV business in 2025, impacting overall revenue growth. This significant challenge underscores the need for strategic adjustments to maintain growth momentum.
Forward-Looking Guidance
Gilead’s forward-looking guidance remains optimistic, with a reported 6% year-over-year increase in Biktarvy sales and a 20% rise for Descovy. The company achieved a notable 35% sequential growth in Livdelzi sales. Non-GAAP EPS grew by 22% year-over-year, supported by disciplined operating expense management. Despite the Medicare Part D headwind, Gilead raised its 2025 HIV revenue growth expectations to approximately 5%. The company is also advancing its oncology pipeline, with plans for a 2026 commercial launch of Trodelvy and preparing for the FDA approval process for bulevirtide in chronic hepatitis delta virus.
In summary, Gilead Sciences’ earnings call reflected a positive outlook, driven by strong growth in its HIV portfolio and successful product launches. Despite challenges in oncology and cell therapy, the company remains committed to strategic advancements and revenue growth. Investors and stakeholders can look forward to continued progress in Gilead’s key therapeutic areas.