Summary
Gilead Sciences, Inc. reported a net loss of $4.17 billion for the first quarter of 2024, a significant decrease from a net income of $1.01 billion in the prior year period. This loss was largely attributed to a substantial acquired in-process research and development (IPR&D) charge of $3.9 billion related to the acquisition of CymaBay Therapeutics and a $2.4 billion impairment charge for certain IPR&D assets connected to Trodelvy. Despite the net loss, total revenues saw a 5% increase year-over-year, reaching $6.69 billion. This growth was driven by strong performance in HIV and Oncology segments, with notable increases in Biktarvy and Trodelvy sales. However, Veklury sales experienced a decline, reflecting decreased COVID-19 related hospitalizations. Financial activities during the quarter included significant investments in acquisitions, notably the CymaBay purchase, and ongoing share repurchases and dividend payments, contributing to a decrease in cash and cash equivalents.
Financial Highlights
56 data points| Revenue | $6.69B |
| Cost of Revenue | $1.55B |
| Gross Profit | $5.13B |
| SG&A Expenses | $1.38B |
| Operating Expenses | $11.01B |
| Operating Income | -$4.32B |
| Interest Expense | $254.00M |
| Net Income | -$4.17B |
| EPS (Basic) | $-3.34 |
| EPS (Diluted) | $-3.34 |
| Shares Outstanding (Basic) | 1.25B |
| Shares Outstanding (Diluted) | 1.25B |
Key Highlights
- 1Total revenues increased by 5% to $6.69 billion for Q1 2024, driven by growth in HIV and Oncology product sales.
- 2Reported a net loss of $4.17 billion for Q1 2024, compared to a net income of $1.01 billion in Q1 2023, primarily due to significant IPR&D charges and impairments.
- 3Acquisition of CymaBay Therapeutics for $3.9 billion (net cash) was completed in March 2024, adding seladelpar to the pipeline.
- 4A $2.4 billion impairment charge was recognized for IPR&D assets related to Trodelvy for metastatic NSCLC, following a Phase 3 study that did not meet its primary endpoint.
- 5HIV product sales grew 4% to $4.34 billion, led by strong demand for Biktarvy.
- 6Trodelvy sales increased by 39% to $309 million, reflecting higher demand.
- 7Net cash provided by operating activities was $2.22 billion, while net cash used in investing activities was $2.21 billion, largely due to the CymaBay acquisition.