Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally.
Gilead Sciences, a holding in the value component of the US Growth portfolio, shares dropped 3.4% in after-hours trading after the biopharma company reported first-quarter revenue that came in below market forecasts, weighed down by softer sales from some of its key products.
The company delivered USD 6.67 billion in revenue for the March quarter, slightly under the USD 6.79 billion analysts were expecting. Earnings per share, however, beat estimates, coming in at USD 1.81 compared to a forecast of USD 1.76 — a result supported by lower operating expenses and share buybacks during the quarter.
While total revenue was flat compared to the same period last year, there was a clear shift in where the money was made. Sales of Veklury (remdesivir), once a major earner during the peak of the Covid-19 pandemic, fell sharply by 45% to USD 302 million. This was well below expectations of USD 400.6 million, as hospitalisations related to Covid-19 continue to ease across regions.
Gilead’s HIV portfolio remains the backbone of its business, with flagship drug Biktarvy generating USD 3.15 billion in sales — just shy of the USD 3.18 billion estimate. Meanwhile, Descovy stood out as a bright spot, bringing in USD 586 million and outperforming expectations by around 17%.
However, the biggest disappointment came from Trodelvy, Gilead’s breast cancer treatment, which reported USD 293 million in sales, falling significantly short of the USD 363.5 million forecast. The company attributed this to lower pricing and a sizeable inventory reduction from the previous quarter, with some analysts also pointing to increasing competition in the market.
Gilead’s cell therapy products also underperformed, including Yescarta and Tecartus, which missed their respective sales targets for the quarter.
Despite the revenue shortfall, the company maintained its full-year guidance, expecting adjusted earnings per share between USD 7.70 and USD 8.10. Product sales are forecast to remain between USD 28.2 billion and USD 28.6 billion, consistent with earlier projections. Management flagged tariffs on lab supplies and raw materials as a cost headwind but suggested these impacts are being largely offset by favourable currency movements.
The company also declared a second-quarter dividend of 79 US cents per share, reinforcing its commitment to returning capital to shareholders.
While Gilead’s base business, particularly in HIV treatments, remains a steady performer, the disappointing results from Trodelvy and weaker Covid-related sales highlight the challenges the company faces in diversifying its revenue streams and managing competitive pressures in its oncology portfolio.
