Summary
Gilead Sciences, Inc. reported total revenues of $6.35 billion for the first quarter of 2023, a 4% decrease year-over-year, primarily due to lower sales of Veklury (remdesivir). However, the company saw strong growth in its oncology portfolio, with significant increases in Cell Therapy (up 64%) and Trodelvy (up 52%), driven by expanded adoption and new indications. HIV product sales also increased by 13%, indicating continued strength in this core franchise, bolstered by Biktarvy and Descovy for PrEP. Net income attributable to Gilead significantly improved to $1.01 billion, or $0.80 per diluted share, compared to $19 million, or $0.02 per diluted share, in the prior year. This substantial increase was largely driven by the absence of a $2.7 billion in-process research and development impairment charge recorded in Q1 2022. Gilead also made strategic investments, including the acquisition of Tmunity Therapeutics and a collaboration with Arcellx, signaling a continued focus on expanding its oncology pipeline. The company maintained a healthy operating cash flow of $1.74 billion.
Financial Highlights
56 data points| Revenue | $6.35B |
| Cost of Revenue | $1.40B |
| Gross Profit | $4.95B |
| SG&A Expenses | $1.32B |
| Operating Expenses | $4.65B |
| Operating Income | $1.71B |
| Interest Expense | $230.00M |
| Net Income | $1.01B |
| EPS (Basic) | $0.81 |
| EPS (Diluted) | $0.80 |
| Shares Outstanding (Basic) | 1.25B |
| Shares Outstanding (Diluted) | 1.26B |
Key Highlights
- 1Total revenues decreased by 4% to $6.35 billion, primarily due to lower Veklury sales, but were partially offset by growth in HIV and Oncology.
- 2Net income attributable to Gilead surged to $1.01 billion ($0.80 EPS) from $19 million ($0.02 EPS) in Q1 2022, mainly due to the absence of a significant R&D impairment charge in the prior year.
- 3HIV product sales grew by 13% to $4.2 billion, driven by strong performance of Biktarvy and Descovy for PrEP.
- 4Oncology revenues saw substantial growth: Cell Therapy up 64% to $448 million (driven by Yescarta and Tecartus) and Trodelvy up 52% to $222 million (driven by new indications).
- 5Research and Development expenses increased by 23% to $1.45 billion, reflecting investments in new study launches and clinical activities, particularly in oncology.
- 6Acquired in-process R&D expenses were $481 million, largely from the acquisition of Tmunity and the collaboration with Arcellx.
- 7The company repurchased $400 million of its common stock and paid $969 million in dividends during the quarter, demonstrating continued capital return to shareholders.