Gilead Sciences, Inc.
CEO : Mr. Daniel P. O’Day
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 2.0% YoY | 445.2% | 336.7% | 2023-02-02 |
Johanna Mercier says,
Quarterly Sales and Growth
- Total product sales, excluding Veklury, at $6.3 billion, up 9% YoY, or 12%, excluding FX and the loss of exclusivity of Truvada and Atripla
- HIV sales for Q4 were $4.8 billion, up 5% YoY, driven by higher demand and favorable pricing dynamics
- Biktarvy sales for the quarter were $2.9 billion, up 15% YoY, driven by higher demand and favorable pricing dynamics
- Trodelvy sales of $195 million in Q4 grew 65% YoY
- Cell Therapy sales in Q4 were $490 million, up 75% YoY
2023 HIV Sales Guidance
- First quarter HIV sales expected to decline by low teens sequentially from Q4 due to typical first quarter reset in patient co-pay and deductibles and inventory drawdown
- HIV growth in 2023 expected to be lower than in 2022 due to channel mix being relatively similar to last year, not expecting growth to benefit from changes in average realized price
Descovy and Lenacapavir for PrEP
- Descovy sales for Q4 were $537 million, up 13% YoY
- U.S. PrEP market grew 18% YoY and 3% sequentially in Q4, with Descovy maintaining a stable market share of over 40%
- Lenacapavir for PrEP potential launch in middle of the decade
Veklury and Oral COVID-19 Nucleoside
- Veklury delivered $3.9 billion in 2022, still playing an essential role for hospitalized patients treated for COVID-19
- Continuing work on oral COVID-19 nucleoside
Trodelvy’s Expected Decision and Cell Therapy
- Expected decision from the FDA later this month for Trodelvy’s potentially clinically meaningful benefits into the pre-treated HR-positive/HER2-negative metastatic breast cancer setting
- Cell Therapy sales in Q4 were $490 million, up 75% YoY, driven by continued uptake of Yescarta in large B cell lymphoma
Market Share and Growth
- Market share for HIV over 50% in both the U.S. and Europe
- Biktarvy achieved full year sales of over $10 billion in 2022
- Yescarta and Tecartus as the leading cell therapies of choice globally, with Yescarta recently approved for second-line LBCL in Japan
- Expecting approvals and reimbursement into additional indications that are currently available in the U.S. and other markets over the next year
Andrew Dickinson says,
Strong Q4 Performance Driven by Biktarvy, Veklury, and Oncology
- Total product sales, excluding Veklury, grew 9% YoY in Q4.
- Total underlying sales growth, excluding FX and HIV LOEs, was 12% YoY in Q4.
- HIV sales, driven by Biktarvy, grew 8% YoY, with Biktarvy growing 20% YoY to reach $10.4 billion.
- Oncology full-year revenues exceeded $2 billion, growing 71% YoY.
Total Product Sales Show Strong YoY Growth
- Total product sales, excluding Veklury, grew 9% YoY in Q4.
- Total underlying sales growth, excluding FX and HIV LOEs, was 12% YoY in Q4.
2023 Guidance Shows Base Business Growth and Stable Expenses
- Gilead expects total product sales in the range of $26 billion to $26.5 billion for 2023.
- Total product sales, excluding Veklury, are expected to grow by 4% to 6% YoY.
- Biktarvy sales are expected to be around $2 billion, with updates provided quarterly.
- Non-GAAP product gross margin is expected to be approximately 86%.
- R&D expenses are expected to increase by a high single-digit percentage, reflecting investment in strategic growth areas and an increase in later-stage trials.
- SG&A expenses are expected to decrease by a low single-digit percentage, with normalization showing a mid-single-digit increase YoY.
Shareholder Returns Remain a Priority
- Gilead returned over $5 billion to shareholders in 2022, with a 2.7% increase in quarterly cash dividend announced for 2023.
- Share repurchases will continue on an opportunistic basis.
Other Highlights
- Non-GAAP diluted EPS in Q4 2022 was $1.67, up from $0.69 in the same period in 2021.
- The non-GAAP effective tax rate in Q4 2022 was 16.8%.
- Gilead expects a non-GAAP diluted EPS for 2023 between $6.60 and $7.
- Gilead has 23 active Phase III trials expected by the end of 2023.
Q & A sessions,
Q4 2022 Financial Performance
- Gilead reported a strong Q4 2022 performance primarily driven by Biktarvy, Veklury, and oncology.
- Total product sales, excluding Veklury, grew 9% YoY and underlying sales growth for the fourth quarter was 12% compared to the prior year.
- Non-GAAP product gross margin was 86.8%, up more than 16 percentage points from the last year.
- Non-GAAP diluted earnings per share was $1.67 in Q4 2022 compared to $0.69 in Q4 2021.
Full Year 2022 Financial Performance
- Sales, excluding Veklury, grew 8% compared to 2021, primarily driven by Biktarvy and oncology.
- Oncology full year revenues exceeded $2 billion for the first time and grew 71% from 2021.
- Non-GAAP effective tax rate for 2022 was 19.3% and non-GAAP diluted EPS was $7.26 per share compared to $7.18 per share reported in 2021.
Guidance for 2023
- Gilead expects total product sales in the range of $26 billion to $26.5 billion and sales, excluding Veklury, in the range of $24 billion to $24.5 billion.
- Biktarvy sales are expected to be approximately $2 billion and to remain highly variable depending on the frequency and severity of surges.
- Gilead expects non-GAAP operating income for 2023 to be $11 billion to $11.6 billion and non-GAAP diluted EPS to be between $6.60 and $7 per share.
- Gilead expects R&D to increase by a high single-digit percentage compared to 2022 levels and SG&A to decrease by a low single-digit percentage compared to 2022 levels.
No bad stock 