Gilead Sciences (GILD) Plunges 3.52% on Earnings Miss, Restructuring

Gilead Sciences' stock price dropped by 3.52% in pre-market trading on April 25, 2025, reflecting investor concerns and market reactions to recent developments.

Gilead Sciences has been actively restructuring its operations, including significant layoffs and the closure of certain facilities. The company has announced plans to end operations at its Kite Pharma factory in Philadelphia by mid-2025, and there have been reports of layoffs in its China division. These moves are part of Gilead's strategy to optimize resources and focus on key products, such as the HIV prevention drug lenacapavir, which is expected to be administered twice a year.

Gilead's first-quarter earnings report showed mixed results. While the company exceeded earnings expectations with $1.81 per share, it fell short of revenue estimates, reporting $6.67 billion compared to the anticipated $6.77 billion. This revenue shortfall was primarily due to a decrease in Veklury sales, which dropped by 45% to $302 million, reflecting lower COVID-19 hospitalizations. Despite this, HIV product sales increased by 6% to $4.6 billion, driven by higher prices and demand for Biktarvy.

Gilead's CEO, Daniel O'Day, highlighted the company's strong commercial and clinical execution, as well as disciplined expense management. However, the company lowered its fiscal 2025 earnings guidance to a range of $5.65 to $6.05 per share, down from the previous range of $5.95 to $6.35 per share. This adjustment reflects the challenges Gilead faces in maintaining revenue growth amidst a changing market landscape.