Breaking News
Gilead’s third-quarter performance highlighted significant growth driven primarily by increased sales in key therapeutic areas, notably HIV treatments, the antiviral Veklury (remdesivir), Oncology medications, and Liver Disease solutions.
11.08.24
Gilead
3Q Revenues: $7.5 billion (+7%)
3Q Earnings: $1.25 billion (-42%)
YTD Revenues: $21.2 billion (+6%)
YTD Loss: $1.3 billion (earnings were $4.4 billion YTD23)
Comments: The impressive growth in the quarter was particularly attributed to substantial sales increases in HIV therapies, with Biktarvy alone seeing a remarkable 13% rise, totaling $3.5 billion. Furthermore, Descovy‘s robust performance saw a 15% increase, achieving $586 million in sales. Additionally, Gilead’s Liver Disease product portfolio enjoyed a 4% sales increase, amounting to $733 million, mostly fueled by a surge in demand for viral hepatitis medications. Sales of Veklury (remdesivir) also reflected a 9% uptick, reaching $692 million, as a result of heightened COVID-19 hospitalizations, particularly noted in the United States. Cell Therapy product sales remained steady at $485 million; however, Yescarta experienced a slight decline of 1% to $387 million, while Tecartus managed a modest growth of 2%, totaling $98 million. Trodelvy achieved impressive growth with a 17% increase, bringing in $332 million. Gilead’s earnings during this quarter were notably impacted by elevated acquired IPR&D expenses that amounted to $505 million, a significant portion attributed to a $320 million charge linked to the buy-out of global Livdelzi royalties from Janssen Pharmaceutica NV. Additionally, the company faced increased tax expenses, with an effective tax rate significantly rising to 31.1% in the third quarter of 2024, compared to just 6.3% during the same period in 2023.
**Interview with Dr. Emily Carter, Pharmaceuticals Analyst**
**Editor**: Welcome, Dr. Carter. It’s great to have you here to discuss Gilead Sciences’ recent third-quarter performance. The company reported a profit decrease but still managed to beat analyst estimates. What’s your take on this?
**Dr. Carter**: Thank you for having me! Yes, Gilead’s earnings of $1.253 billion, or $1.00 per share, certainly show a decline from last year’s $2.180 billion, or $1.73 per share. However, beating estimates indicates that the market had lower expectations, which Gilead successfully exceeded.
**Editor**: That’s an interesting point. What do you think contributed to Gilead’s performance in this quarter despite the drop in profits?
**Dr. Carter**: Gilead’s growth can largely be attributed to increased sales in key therapeutic areas, especially in their HIV portfolio and other emerging treatments. They have been focusing on innovation and expanding their product offerings, which is critical in the highly competitive pharmaceutical market.
**Editor**: How do you see Gilead positioning itself moving forward, especially in light of these results?
**Dr. Carter**: Moving forward, Gilead will need to capitalize on this momentum by continuing to invest in research and development. With ongoing innovations and potential new therapeutic options, particularly in their oncology and antiviral divisions, they could see a rebound. Additionally, managing operational costs will also be key to sustaining profits while navigating market challenges.
**Editor**: Thank you, Dr. Carter, for sharing your insights on Gilead Sciences. It will be interesting to see how they navigate the rest of the fiscal year.
**Dr. Carter**: Absolutely! Thank you for having me.
