Summary
Gilead Sciences, Inc. (GILD) reported solid revenue growth of 11% in 2021, reaching $27.3 billion. This was primarily driven by strong performance from Veklury (remdesivir), its treatment for COVID-19, which nearly doubled sales compared to the previous year. The company also saw continued growth in its Biktarvy franchise for HIV, and increased contributions from its oncology segment, particularly Trodelvy and its cell therapies (Yescarta and Tecartus). Despite these successes, Gilead faced headwinds from the loss of exclusivity for its Truvada and Atripla HIV medications in the U.S., leading to a 4% decrease in HIV product sales. The company also experienced a decline in HCV product sales due to reduced patient demand amid the COVID-19 pandemic. Gilead reported a significant increase in net income to $6.2 billion, a substantial improvement from $123 million in 2020, which was largely due to lower acquired in-process research and development (IPR&D) charges and favorable equity investment performance, partially offset by a large settlement charge related to bictegravir litigation. The company outlined a strategic focus on expanding its commercial portfolio and clinical pipeline, aiming to bring 10+ transformative therapies to patients by 2030. For 2022, Gilead anticipates product sales growth of 2-4% excluding Veklury, with expectations of continued recovery in its HIV business and growth in oncology. However, significant uncertainties remain regarding the trajectory of the COVID-19 pandemic and future Veklury sales.
Financial Highlights
58 data points| Revenue | $27.30B |
| Cost of Revenue | $6.60B |
| Gross Profit | $20.70B |
| SG&A Expenses | $5.25B |
| Operating Expenses | $17.39B |
| Operating Income | $9.92B |
| Interest Expense | $1.00B |
| Net Income | $6.22B |
| EPS (Basic) | $4.96 |
| EPS (Diluted) | $4.93 |
| Shares Outstanding (Basic) | 1.26B |
| Shares Outstanding (Diluted) | 1.26B |
Key Highlights
- 1Total revenues increased by 11% to $27.3 billion in 2021, driven by Veklury and growth in HIV and oncology portfolios.
- 2Veklury sales more than doubled to $5.6 billion in 2021, significantly contributing to overall revenue.
- 3HIV product sales saw a 4% decrease to $16.3 billion due to generic competition following the loss of exclusivity for Truvada and Atripla in the U.S.
- 4Oncology segment sales, including Trodelvy and cell therapies (Yescarta, Tecartus), showed strong growth, increasing by 43% to $871 million for cell therapy alone.
- 5Net income surged to $6.2 billion in 2021 from $123 million in 2020, primarily due to lower IPR&D expenses and reduced unrealized losses from equity investments.
- 6Gilead announced a $1.25 billion settlement payment related to bictegravir litigation, impacting the fourth quarter of 2021, with a 3% ongoing royalty on future U.S. Biktarvy sales until October 2027.
- 7The company maintained a strong liquidity position with $7.8 billion in cash, cash equivalents, and marketable debt securities as of December 31, 2021.