Gilead's Q3 Earnings Reveal Growth in HIV Portfolio, Challenges in Other Areas

Gilead Sciences, a leading pharmaceutical company, has reported mixed results in its third-quarter earnings, showcasing strong performance in its HIV franchise while facing challenges in other areas. The company's strategic focus on dealmaking and expansion into new therapeutic areas highlights its commitment to growth and innovation in the pharmaceutical industry.

HIV Portfolio Leads Growth, Veklury Sales Plummet

Gilead's HIV franchise continues to be the company's strongest performer, with sales increasing 4% year-over-year to $5.27 billion, surpassing forecasts by 1%. The daily HIV pill Biktarvy emerged as the top-performing asset, growing 6% to generate nearly $3.7 billion in revenue.

In contrast, Gilead's COVID-19 drug Veklury experienced a significant decline, with sales plummeting 60% year-over-year to $277 million. This figure fell 24% below consensus estimates, reflecting the changing landscape of COVID-19 treatment demand.

Dealmaking Strategy and Therapeutic Expansion

Gilead's Chief Financial Officer, Andrew Dickinson, emphasized the company's ongoing commitment to dealmaking across various therapeutic areas. During the Q3 earnings call, Dickinson stated, "We are actively looking at opportunities across the [business development] spectrum in all our areas of strategic interests." This includes a focus on liver diseases, oncology, virology, immunology, and cell therapy.

The company's recent $4.3 billion acquisition of CymaBay, which brought the liver disease drug seladelpar (now marketed as Livdelzi) into its portfolio, exemplifies this strategy. Livdelzi, approved by the FDA for primary biliary cholangitis, has shown promising growth, contributing to the commercial outperformance of Gilead's liver disease franchise.

Financial Performance and Future Outlook

Gilead reported a 3% year-on-year increase in overall revenue, reaching $7.8 billion for the quarter. However, product sales dipped 2% to $7.3 billion, falling slightly below consensus estimates. The company has narrowed its 2025 forecast, now expecting full-year product sales between $28.4 billion and $28.7 billion.

The newly approved twice-yearly pre-exposure prophylaxis drug, Yeztugo, generated $39 million in its first commercial quarter, with total sales of $54 million since its market launch. Gilead anticipates Yeztugo's full-year sales to reach approximately $150 million.