10-QPeriod: Q2 FY2024

GILEAD SCIENCES, INC. Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 8, 2024For Securities:GILD

Summary

Gilead Sciences, Inc. (GILD) reported $6.95 billion in total revenues for the second quarter of 2024, a 5% increase compared to the same period last year. This growth was primarily driven by strong performance in HIV, Oncology, and Liver Disease segments. Diluted earnings per share (EPS) for the quarter were $1.29, a significant increase from $0.83 in Q2 2023, reflecting improved revenues and lower operating expenses. Despite a strong Q2 performance, the six-month period ending June 30, 2024, showed a net loss of $2.56 billion. This was largely attributable to a significant acquired in-process R&D charge of $3.9 billion related to the CymaBay acquisition and a $2.4 billion impairment charge on IPR&D assets for Trodelvy's NSCLC indication. The company also reported a decrease in cash and cash equivalents, primarily due to the CymaBay acquisition and dividend payments. Gilead's balance sheet remains robust, but investors should monitor the impact of significant R&D charges and ongoing litigation.

Financial Highlights

55 data points
Beta

Revenue

$6.95B

77.8% Gross Margin

Net Income

$1.61B

23.2% Net Margin

EPS (Diluted)

$1.29

Total Assets

$53.58B

Cash & Equivalents

$2.77B

Free Cash Flow

$1.20B

Financial Statements
Beta
Revenue$6.95B
Cost of Revenue$1.54B
Gross Profit$5.41B
SG&A Expenses$1.38B
Operating Expenses$4.31B
Operating Income$2.64B
Net Income$1.61B
EPS (Basic)$1.29
EPS (Diluted)$1.29
Shares Outstanding (Basic)1.25B
Shares Outstanding (Diluted)1.25B

Key Highlights

  • 1Total revenues increased by 5% year-over-year to $6.95 billion for the second quarter of 2024, driven by growth in HIV, Oncology, and Liver Disease product sales.
  • 2Diluted earnings per share (EPS) for the second quarter of 2024 was $1.29, a substantial increase from $0.83 in the prior year's second quarter.
  • 3The six-month period ending June 30, 2024, resulted in a net loss of $2.56 billion, primarily due to significant R&D charges and impairments.
  • 4A major factor impacting the six-month results was a $3.9 billion acquired in-process R&D expense related to the acquisition of CymaBay Therapeutics.
  • 5The company recorded a $2.4 billion impairment charge related to Trodelvy's non-small cell lung cancer (NSCLC) indication following disappointing Phase 3 study results.
  • 6Cash and cash equivalents decreased significantly from $6.09 billion at the beginning of the year to $2.77 billion by the end of the second quarter, largely due to acquisitions and dividend payments.
  • 7Gilead continues to face significant legal proceedings, including patent litigation with generic manufacturers and antitrust and product liability lawsuits.

Frequently Asked Questions

Revenue growth in Q2 2024 was primarily driven by increased product sales in the HIV, Oncology, and Liver Disease segments. Key contributors included strong performance from Biktarvy, Yescarta, Tecartus, and Trodelvy, as well as increased sales in the Liver Disease portfolio.

The net loss for the first six months of 2024 was significantly impacted by two major non-recurring items: a $3.9 billion acquired in-process R&D expense related to the acquisition of CymaBay Therapeutics and a $2.4 billion impairment charge on intangible assets associated with the Trodelvy indication for non-small cell lung cancer.

The acquisition of CymaBay, completed in March 2024 for $3.9 billion (net cash paid), significantly impacted the six-month financial results due to the substantial acquired in-process R&D expense. It also contributed to a decrease in cash and cash equivalents.

Gilead is involved in several significant legal proceedings, including patent infringement lawsuits related to generic versions of Symtuza, Biktarvy, and Genvoya, and ongoing antitrust and product liability litigation concerning various HIV medications. The company also had a favorable jury verdict in a patent infringement case with the U.S. federal government related to PrEP, though an appeal has been filed. While many of these matters are ongoing, Gilead believes it has strong defenses.