Gilead Sciences' Strong Q4 Results: HIV Growth and Long-Acting Portfolio

Gilead Sciences Inc. (GILD) reported robust financial results for the fourth quarter and full year 2024, with total product sales excluding Veklury increasing by 13% year-over-year to $7.2 billion. The company's HIV segment demonstrated significant growth, with full-year sales increasing by 8% to $19.6 billion, driven by the success of Biktarvy, which grew 13%. Gilead Sciences' strong performance was underpinned by its innovative HIV treatments and the team's consistent execution.

Gilead Sciences' HIV business has established a track record of consistent growth, with 5% growth in 2022, 6% in 2023, and now 8% in 2024. This trajectory is driven by the company's commitment to innovation and the strength of its team. Biktarvy, the standard of care for HIV treatment, has contributed significantly to the company's success, with full-year sales growing by 13% in 2024. Gilead Sciences' long-acting portfolio, of which lenacapavir is the foundation, is expected to extend the company's leadership in the HIV market beyond the 2030s.

The anticipated impact of Medicare Part D reform on Gilead Sciences' HIV revenue growth in 2025 is expected to be approximately $1.1 billion, with $900 million impacting the HIV segment. This will effectively reset the base from which the HIV business will continue to grow from 2025. To adapt to this change, Gilead Sciences is focusing on its long-acting portfolio and exploring other long-acting options that could erode some of Biktarvy's market share before its loss of exclusivity in 2033. The company is also maintaining strong expense control, allowing it to leverage expenses to the bottom line in 2025 and beyond.

The anticipated launch of lenacapavir for HIV prevention fits into Gilead Sciences' long-acting portfolio strategy as a foundational component. With its breakthrough therapy designation and unprecedented efficacy in phase 3 trials, lenacapavir is expected to significantly contribute to Gilead's HIV prevention market share. The injectable nature of lenacapavir may initially slow administration, but its potential impact on the HIV prevention market is expected to be substantial in 2025 and beyond. As Johanna Mercier, Chief Commercial Officer, noted, access to lenacapavir is expected to ramp up over the months following launch, with expectations of 75% access by six months and 90% by twelve months.