Total product sales, excluding Veklury, grew by 6% year-over-year to $6.1 billion, driven by higher demand across HIV, oncology, and liver disease segments.
Veklury sales totaled $555 million, tracking with rates of hospitalization for COVID-19.
HIV product sales increased by 4% year-over-year.
Oncology product sales were up 18%, driven by Trodelvy and transformative cell therapies.
Liver disease sales saw a 9% year-over-year increase to $737 million.
GAAP diluted earnings per share were negatively impacted by $1.32, mainly due to a $3.9 billion charge associated with the Sema Bay acquisition.
Non-GAAP diluted EPS, excluding the IP R&D charge, would have been $1.82 for the first quarter.
Future Guidance
Gilead maintains total product sales forecast for 2024 in the range of $27.1 billion to $27.5 billion.
Excluding Veklury, total product sales are expected to be between $25.8 billion and $26.2 billion, indicating a 4% to 6% growth for the base business year-over-year.
Veklury sales are anticipated to be approximately $1.3 billion for the full year.
Product gross margin is projected to be in the 85% to 86% range.
Research and Development (R&D) expenses are expected to grow at the higher end of the low to mid-single-digit percentage range, with SG&A expenses predicted to decline by a mid-single-digit percentage relative to 2023.
Acquired IP R&D is forecasted to be about $4.4 billion, with operating income projected to be in the range of $7 billion to $7.5 billion.
The effective tax rate for 2024 is expected to be approximately 30%, reflecting the nondeductible impact of the CymaBay acquisition, translating into diluted EPS in the range of $3.45 to $3.85.
Trends, Market Conditions, Sentiment
The consistent growth in HIV, oncology, and liver disease segments highlights the robust demand and solid commercial performance of Gilead’s portfolio.
There’s a strong focus on cell therapy expansion, with plans to into community networks in the U.S., double manufacturing capacity, and move into new indications with next-generation products.
The close of the Sema Bay acquisition and the filing for regulatory approval of seladelpar indicates Gilead’s strategic focus on addressing significant unmet needs in liver disease.
The decline in Veklury sales reflects the changing dynamics of COVID-19 hospitalization rates, indicating a potential shift in the market dependency on COVID-19 related revenues.
Gilead is demonstrating a focused execution on both near-term execution and longer-term plans, with 54 clinical programs in play and no major patent expiration for the decade, highlighting optimism for sustained growth and innovation.
Notable Quotes
”We have a lot of tension and a lot to deliver.” - Gilead teams acknowledged for their contribution towards a strong first quarter.
”This is a time of focused execution for Gilead.” - Stressed the importance of disciplined approach in achieving upcoming milestones.
”…expand our therapies to new populations positively impacting more people all over the world.” - Commitment towards expanding the reach of current and future therapies to benefit more patients globally.
