Gilead Sciences (GILD) is set to release its quarterly earnings report on Wednesday, November 6th, 2024. Analysts expect the company to report an EPS of $1.55. Investors will be watching closely for any positive guidance and how the company’s performance compares to its peers. Read on for a detailed analysis of Gilead’s recent performance, analyst expectations, and key financial metrics.
Gilead Sciences has announced the voluntary withdrawal of the accelerated approval for its cancer drug Trodelvy in treating locally advanced or metastatic urothelial cancer in the US. This decision, made in consultation with the FDA, follows results from a confirmatory Phase 3 study that did not meet the primary endpoint of overall survival. The withdrawal does not affect other approved indications for Trodelvy within or outside the US.
Gilead Sciences has issued a voluntary recall of one lot of its COVID-19 treatment Veklury (remdesivir) after discovering glass particles in the vials. The company received a customer complaint prompting an investigation that confirmed the presence of foreign material in the affected lot. Gilead is notifying distributors and customers, urging them to stop using the recalled lot and return any remaining vials.
The FDA has granted accelerated approval to Gilead Sciences’ Livdelzi (seladelpar) for the treatment of primary biliary cholangitis (PBC) in adults. Livdelzi can be used in combination with ursodeoxycholic acid (UDCA) for those who haven’t responded well to UDCA or as monotherapy for patients unable to tolerate UDCA.
A new HIV-preventive drug, lenacapavir, has demonstrated 100% efficacy and no safety concerns in a phase-3 trial involving young women in South Africa and Uganda. The twice-yearly injectable drug, developed by Gilead Sciences, Inc., showed zero HIV infections in the trial participants, compared to 39 and 16 infections in the groups receiving daily oral tablets Descovy and Truvada, respectively.
Gilead Sciences has reported a 5% increase in revenue for the first quarter of 2024, surpassing analyst expectations and boosting its stock price. The company’s revenue growth was driven by strong performances in HIV, Oncology, and Liver Disease segments, with notable sales gains in Biktarvy and Oncology products. However, Gilead faced an earnings per share (EPS) shortfall due to substantial acquired in-process research and development (IPR&D) charges related to recent acquisitions. Despite the EPS challenges, Gilead’s revenue beat and strategic moves position it for potential future growth.
Gilead Sciences, once written off as the “ugly duckling” of Big Pharma, has made significant strides in recent years. Its oncology portfolio is showing promise, its HIV treatments remain dominant, and it continues to generate solid cash flow. Despite these strengths, GILD stock has given back most of its gains since a late-2022 surge, creating a potential buying opportunity.
Gilead Sciences (GILD) has been underperforming for a decade, but recent indicators suggest a potential bottom and opportunities for investors.
1. Dividend Yield: GILD offers a 4.61% dividend yield, comparable to the 10-Year Treasury, providing income potential with growth prospects.
2. Valuation: GILD trades at low earnings and revenue multiples compared to peers and the broader market.
3. Growth Prospects: While earnings are expected to decline moderately in FY2024, they are projected to rebound strongly in FY2025, driven by oncology and cell therapy growth.
4. HIV Leadership and Pipeline: Gilead maintains leadership in the HIV space and has a promising pipeline in oncology, cell therapy, and inflammatory diseases.
5. M&A: The recent acquisition of CymaBay Therapeutics adds to Gilead’s pipeline, but the high debt level may limit further M&A activity in the near term.
Conclusion: Gilead Sciences appears undervalued with a solid dividend yield and growth potential. Investors may consider covered call strategies to mitigate downside risk and enhance returns.
