Dive Brief:
- Gilead Sciences on Thursday reported $6.7 billion in revenue in the first quarter, missing consensus Wall Street estimates as its cancer drug sales fell short of analyst expectations.
- Gilead’s oncology portfolio generated $758 million in sales over the first three months of the year, down about 4% compared to the same period in 2024. Slower-than-expected sales of Gilead’s breast cancer drug Trodelvy were the main culprit, though the company also blamed lower demand for a decline in cancer cell therapy revenue.
- Gilead’s HIV drug business, though, helped offset those losses, garnering $4.6 billion and climbing 6% year over year. The company expects further growth in the future, as by June 19 the Food and Drug Administration could significantly expand use of lenacapavir, a twice-yearly injectable medicine proven in testing to prevent HIV infections.
Dive Insight:
Gilead has invested heavily in oncology over the last several years, using a string of deals to amass a portfolio of cancer drugs and cell therapies.
That effort has produced somewhat mixed results. Trodelvy — the product of a $21 billion buyout of Immunomedics — hasn’t yet lived up to initial expectations, though clinical results earlier this week in a tough-to-treat form of breast cancer could help improve its outlook. And while Gilead’s cell therapy revenue has steadily grown over the years, the company’s flagging first quarter total suggest competition is eroding its market share, wrote Leerink Partners analyst Daina Graybosch in a Friday note to clients.
Gilead’s core business, though, continues to drive the bulk of its revenue. Sales of its once-a-day oral drug Biktarvy grew 7% to $3.1 billion, while sales of another HIV medicine, Descovy, surged 38% to $586 million.
Lenacapavir, which the company already sells as Sunlenca, could further improve its outlook. The drug was approved in 2022 for people whose HIV infections can’t be controlled by existing treatments. But a pair of large studies last year showed it to be highly effective at preventing infections as well, positioning it to change the dynamics of the so-called pre-exposure prophylactic, or PrEP market currently dominated by pills.
Gilead faces some uncertainty ahead, as Trump administration cuts to a global HIV program could affect the drug’s rollout. The administration has also eliminated a Centers for Disease Control and Prevention office focused on HIV policy and prevention. Gilead faces “greater regulatory (and therefore commercial) risk” from the Department of Health and Human Services, which could affect lenacapavir’s “coverage and reimbursement kinetics,” Leerink’s Graybosch wrote.
Company executives, though, aren’t expecting any such issues as of yet.
“We haven't heard or seen anything that would cause us to alter our plans or expectations for the ... PrEP launch, or adversely affect our HIV business,” said Gilead CEO Daniel O’Day during a call with investors. Chief Commercial Officer Johanna Mercier also said the company believes the U.S. market will continue to grow "quite rapidly" and accelerate with the coming launch.
Gilead shares fell about 3% on Friday, but have climbed nearly 60% over the last year.
