Summary
Gilead Sciences, Inc. reported total revenues of $27.1 billion for the fiscal year 2023, a slight decrease of 1% compared to 2022. This was primarily driven by a significant drop in Veklury (remdesivir) sales due to lower COVID-19 related hospitalizations, which was largely offset by robust growth in HIV and Oncology product sales. Net income attributable to Gilead increased by 23% to $5.7 billion, with diluted earnings per share rising 24% to $4.50. This improvement was largely due to lower impairment charges related to in-process research and development, reduced net unrealized losses on equity investments, and increased interest income. The company continues to strategically invest in its R&D pipeline through acquisitions and collaborations, particularly in oncology and inflammation. Key developments include expanded collaborations and the acquisition of smaller biotech firms to bolster its pipeline. Patent expirations for some key products are on the horizon, with major HIV products like Descovy and Vemlidy having U.S. patent expirations in 2031, and Biktarvy in 2033. The company also faces ongoing litigation, including challenges related to its HIV products and the sale of its PrEP medications, though recent legal outcomes have been favorable in some instances. Gilead maintains a strong liquidity position and continues to return capital to shareholders through dividends and share repurchases.
Financial Highlights
56 data points| Revenue | $27.12B |
| Cost of Revenue | $6.50B |
| Gross Profit | $20.62B |
| SG&A Expenses | $6.09B |
| Operating Expenses | $19.51B |
| Operating Income | $7.61B |
| Interest Expense | $944.00M |
| Net Income | $5.67B |
| EPS (Basic) | $4.54 |
| EPS (Diluted) | $4.50 |
| Shares Outstanding (Basic) | 1.25B |
| Shares Outstanding (Diluted) | 1.26B |
Key Highlights
- 1Total revenues for 2023 were $27.1 billion, a 1% decrease year-over-year, primarily due to a 44% decline in Veklury sales, though this was offset by a 6% increase in HIV sales and a significant 37% increase in Oncology sales.
- 2Net income attributable to Gilead increased 23% to $5.7 billion, and diluted EPS grew 24% to $4.50, benefiting from lower R&D impairment charges and improved investment performance.
- 3The HIV franchise remains Gilead's largest revenue contributor, with Biktarvy showing strong growth of 14% to $11.9 billion. Oncology products, including Yescarta and Trodelvy, also demonstrated substantial growth.
- 4Gilead continued its strategic expansion through acquisitions and collaborations, notably in the oncology and inflammation spaces, indicating a focus on diversifying its portfolio and pipeline.
- 5The company faces upcoming patent expirations for key products, with significant patents for HIV treatments like Descovy and Vemlidy expiring in the U.S. in 2031, and Biktarvy in 2033.
- 6Gilead's gross-to-net deductions increased to 38% of gross product sales in 2023, up from 35% in 2022, primarily due to changes in product mix and payer mix.
- 7The company is subject to ongoing legal proceedings, including antitrust litigation related to HIV drugs and patent disputes with generic manufacturers, although recent developments have seen favorable outcomes in some cases.