Gilead Sciences, Inc. (Nasdaq: GILD), a leading biopharmaceutical company, announced its first quarter 2025 results, marking a strong commercial and clinical performance and disciplined expense management. The company reported total revenue of $6.7 billion for Q1 2025, flat compared to Q1 2024, demonstrating resilience amid market shifts, notably a 45% decline in Veklury sales due to reduced COVID-19 hospitalizations.
Key financial highlights include: - Product sales excluding Veklury grew by 4% year-over-year to \(6.3 billion, reflecting robust demand in HIV and liver disease portfolios. - HIV product sales increased 6% to \)4.6 billion, driven by a 7% rise in Biktarvy sales, reaching \(3.1 billion, and a 38% surge in Descovy sales to \)586 million. - Product gross margin remained stable at 76.7%, with non-GAAP margin slightly improving to 85.5%. - Operating income improved dramatically to \(2.24 billion from an operating loss of \)4.32 billion in Q1 2024, primarily due to non-recurring charges in the prior year. - Diluted earnings per share (EPS) saw a significant turnaround to \(1.04 from a loss of \)3.34, with non-GAAP EPS at \(1.81. - Cash and cash equivalents decreased to \)7.9 billion from \(10.0 billion at year-end 2024, influenced by dividends of \)1.0 billion, repurchasing \(730 million of stock, and \)1.8 billion in debt repayment.
Gilead’s strategic investments continued with \(1.4 billion in R&D expenses, slightly reduced from the previous year's \)1.5 billion, reflecting efficient clinical manufacturing activities. The company maintained a disciplined approach to selling, general and administrative (SG&A) expenses, which decreased to $1.3 billion.
The company’s pipeline remains vibrant with upcoming milestones such as the June 2025 FDA PDUFA date for lenacapavir for HIV prevention and promising Phase 3 topline results for Trodelvy plus pembrolizumab in metastatic triple negative breast cancer.
From a financial perspective, Gilead’s stable gross margin (77.8% in FY 2024) and improved operating margin (5.8% in FY 2024) provide a healthy foundation for sustainable growth. The company’s free cash flow margin stood robust at 35.8%, supporting capital allocation strategies, including dividends and debt management.
Reflecting on recent earnings calls, management emphasized navigating headwinds like Medicare Part D redesign affecting HIV franchise sales, while maintaining focus on expanding core business and margin improvements through disciplined expense management and portfolio diversification. The strategic CymaBay acquisition added seladelpar, enhancing liver disease treatment offerings with anticipated regulatory approval and revenue contributions.
Looking forward, Gilead projects full-year 2025 total product sales between \(28.2 billion and \)28.6 billion, and diluted EPS in the range of \(5.65 to \)6.05. The company remains committed to innovation, clinical development, and operational excellence to drive long-term shareholder value.
For the full Q1 2025 financial details and disclosures, visit the SEC filing.
Tags: #GileadSciences #Biopharmaceuticals #HIVTreatment #FinancialResults #PharmaceuticalInnovation