FOSTER CITY, Calif. - Gilead Sciences, Inc. (NASDAQ:GILD) has reported a revenue increase in its first quarter of 2024, surpassing analyst expectations and sending its shares up by 3%. The biopharmaceutical company announced revenue of $6.65 billion, a 5% increase from $6.1 billion in the same quarter last year and higher than the consensus estimate of $6.36 billion.
However, Gilead faced a significant earnings per share (EPS) shortfall, posting an adjusted loss of -$1.32 compared to the analyst estimate of $1.56.
The revenue growth was attributed to a 6% year-over-year (YoY) increase in product sales excluding Veklury, with notable performances in HIV, Oncology, and Liver Disease segments. Biktarvy sales climbed 10% YoY to $2.9 billion, and Oncology sales saw an 18% YoY increase to $789 million. The company's Liver Disease portfolio also reported a 9% rise to $737 million.
Despite the revenue beat, Gilead's EPS was impacted by a substantial $3.9 billion acquired in-process research and development (IPR&D) charge stemming from its recent acquisition of CymaBay Therapeutics (NASDAQ:CBAY). The charge equated to a $3.14 diluted EPS impact. The company also incurred a pre-tax IPR&D impairment of $2.4 billion, or $1.46 per share, related to assets acquired from Immunomedics (NASDAQ:IMMU) in 2020.
Gilead's Chairman and CEO, Daniel O’Day, highlighted the company's robust quarter, driven by growth in core business areas and the strategic acquisition of CymaBay, which is expected to bring a potentially transformative therapy for liver disease. O'Day also noted the progress in Gilead's long-acting HIV pipeline and upcoming updates on their Oncology portfolio.
Looking forward, Gilead has provided full-year 2024 EPS guidance in the range of $3.45 to $3.85, with the midpoint of $3.65 slightly below the analyst consensus of $3.67. The company's stock movement following the earnings release indicates a positive investor response to the revenue performance, despite the EPS challenges.
Gilead's financial position remains strong, with $4.7 billion in cash, cash equivalents, and marketable debt securities as of March 31, 2024, although this is a decrease from $8.4 billion at the end of the previous year. The company also reported generating $2.2 billion in operating cash flow during the quarter.
In summary, Gilead's first quarter of 2024 demonstrates a solid revenue trajectory, underpinned by growth in key product areas, despite facing headwinds on the earnings front due to significant one-time charges. The company's strategic moves and pipeline advancements position it for potential future growth, as reflected in the optimistic market reaction.
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