Gilead Sciences Reports Q1 2024 Results, Revenue Surpasses Expectations
Gilead Sciences has announced its financial results for the first quarter of 2024, showcasing a solid revenue performance that exceeded analyst estimates. The biopharmaceutical company reported a revenue of $6.65 billion, a 5% increase from $6.1 billion in the same quarter last year. This revenue growth was primarily driven by a 6% year-over-year (YoY) increase in product sales, excluding Veklury. Notably, the HIV, Oncology, and Liver Disease segments contributed significantly to the company’s revenue expansion. Biktarvy sales climbed 10% YoY to $2.9 billion, and Oncology sales saw an impressive 18% YoY increase to $789 million. The company’s Liver Disease portfolio also reported a healthy 9% rise to $737 million.
EPS Challenges Due to Acquisition-Related Charges
Despite the revenue beat, Gilead’s earnings per share (EPS) fell short of analyst expectations. The company posted an adjusted loss of -$1.32 compared to the consensus estimate of $1.56. This EPS shortfall was primarily attributed to a substantial $3.9 billion acquired in-process research and development (IPR&D) charge stemming from the recent acquisition of CymaBay Therapeutics. Additionally, Gilead incurred a pre-tax IPR&D impairment of $2.4 billion, related to assets acquired from Immunomedics in 2020.
Strategic Moves and Growth Potential
Gilead’s Chairman and CEO, Daniel O’Day, highlighted the company’s robust quarter, driven by growth in core business areas and the strategic acquisition of CymaBay. O’Day emphasized the potential transformative therapy for liver disease that this acquisition is expected to bring to Gilead’s portfolio. The company also highlighted progress in its long-acting HIV pipeline and upcoming updates on its Oncology portfolio.
Full-Year 2024 Guidance and Financial Position
Looking ahead, Gilead has provided full-year 2024 EPS guidance in the range of $3.45 to $3.85, with the midpoint of $3.65 slightly below the analyst consensus of $3.67. The company’s financial position remains solid, with $4.7 billion in cash, cash equivalents, and marketable debt securities as of March 31, 2024, although this represents a decrease from $8.4 billion at the end of the previous year. Gilead also reported generating $2.2 billion in operating cash flow during the quarter.
In summary, Gilead’s first quarter of 2024 demonstrates a strong revenue performance, underpinned by growth in key product areas. While the company faced headwinds on the earnings front due to significant one-time charges, its strategic moves and pipeline advancements position it for potential future growth. The optimistic market reaction to Gilead’s financial results reflects investor confidence in the company’s long-term prospects.
