Gilead Q1 2025 Earnings Report Interpretation: HIV and Hepatitis Drive Growth, Significant Progress in R&D Pipeline

On April 24, Gilead announced its Q1 2025 performance. Although total revenue remained flat compared to the same period last year, the core business showed steady performance, with significant growth in sales of HIV and hepatitis products. Additionally, the R&D pipeline made substantial progress.

Gilead's total revenue for Q1 was $6.7 billion, in line with the same period in 2024. Among this, HIV product sales grew by 6% year-over-year to $4.6 billion, driven mainly by increased demand for Biktarvy? (up 7% to $3.1 billion) and Descovy? (up 38% to $586 million), along with pricing advantages. Hepatitis product sales increased by 3% to $758 million, but sales of the COVID-19 drug Veklury? fell by 45% to $302 million, reflecting the global decline in COVID-19 hospitalizations.

Diluted earnings per share (EPS) improved from a loss of $3.34 in Q1 2024 to a profit of $1.04, mainly due to the $3.9 billion in R&D expenses and $2.4 billion in asset impairments from the acquisition of CymaBay Therapeutics in the previous year, which did not recur. Non-GAAP EPS was $1.81 (compared to a loss of $1.32 in the same period last year). As of March 31, 2025, the company held $7.9 billion in cash and equivalents, a decrease of 21% from the end of 2023. The first-quarter operating cash flow reached $1.8 billion, with $1 billion paid in dividends and $730 million used for share repurchases.

R&D and Pipeline Progress

HIV

The long-acting prevention drug lenacapavir received FDA Priority Review, with a PDUFA date of June 19, 2025. The European Medicines Agency has also expedited the review of its marketing application.

Oncology

Trodelvy? in combination with Keytruda? showed significant progression-free survival benefits in the Phase III trial for triple-negative breast cancer.

Inflammation

Seladelpar received conditional marketing authorization from the European Union for the treatment of primary biliary cholangitis (PBC).

Full-Year Guidance

Gilead maintains its full-year product sales guidance of $28.2 billion to $28.6 billion (excluding Veklury?, which is expected to be $26.8 billion to $27.2 billion). The non-GAAP EPS guidance remains unchanged at $7.70 to $8.10.

CEO Statement

Chairman and CEO Daniel O'Day said, “The company has had a strong start to the year, driven by both commercial execution and R&D efficiency. The continued growth of Biktarvy and positive data from Trodelvy set the foundation for the future. With the advancement of key projects like lenacapavir, we expect to maintain momentum throughout the year.”