On August 8, 2024, Gilead Sciences Inc (GILD, Financial) released its 8-K filing detailing its second quarter 2024 financial results. Gilead Sciences, a biopharmaceutical company known for its therapies targeting life-threatening infectious diseases, reported a robust quarter with significant growth in key areas.
Company Overview
Gilead Sciences develops and markets therapies to treat life-threatening infectious diseases, with a core focus on HIV and hepatitis B and C. The company has expanded its portfolio to include treatments for pulmonary and cardiovascular diseases and cancer through strategic acquisitions.
Q2 2024 Financial Highlights
Gilead Sciences Inc (GILD, Financial) reported a total revenue increase of 5% year-over-year to $7.0 billion, surpassing the analyst estimate of $6.98 billion. The company's diluted earnings per share (EPS) for the quarter was $1.29, exceeding the analyst estimate of $1.27.
Product Sales Performance
Total product sales for the second quarter of 2024 increased by 5% to $6.9 billion. Excluding Veklury, product sales rose by 6% to $6.7 billion, driven by higher sales in HIV, Liver Disease, and Oncology.
| Product | Q2 2024 Sales | Year-over-Year Change |
|---|---|---|
| Biktarvy | $3.2 billion | +8% |
| Oncology | $841 million | +15% |
| Liver Disease | $832 million | +17% |
| Veklury | $214 million | -16% |
Key Financial Metrics
Gilead's non-GAAP diluted EPS was $2.01, up from $1.34 in the same period in 2023. The company generated $1.3 billion in operating cash flow during the quarter and paid dividends of $972 million. As of June 30, 2024, Gilead had $2.8 billion in cash, cash equivalents, and marketable debt securities.
Operational Highlights
Gilead's HIV product sales increased by 3% to $4.7 billion, driven by higher demand. Biktarvy sales rose by 8% to $3.2 billion. The Liver Disease portfolio saw a 17% increase in sales to $832 million, while Oncology sales grew by 15% to $841 million.
“Gilead has had another strong quarter with 6% year-over-year growth in our base business. This was driven by sales of our therapies for HIV, Oncology, and Liver Disease, including 8% growth for Biktarvy,” said Daniel O’Day, Gilead’s Chairman and Chief Executive Officer.
Challenges and Outlook
Despite the strong performance, Gilead faces challenges such as declining Veklury sales, which decreased by 16% to $214 million due to lower COVID-19 related hospitalizations. Additionally, the company reported higher net unrealized losses on equity securities.
For the full year 2024, Gilead expects product sales to range between $27.1 billion and $27.5 billion, with non-GAAP diluted EPS between $6.60 and $6.90.
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Explore the complete 8-K earnings release (here) from Gilead Sciences Inc for further details.
