GILEAD SCIENCES, INC. Q1 FY2025 earnings call

• Strong commercial execution with base business up 4% y/y, driven by HIV and liver disease. • HIV business grew 6% y/y, Biktarvy up 7%, Descovy up 38%. • Livedelzi had $40 million in first-quarter sales with continued launch momentum. • Positive phase three results for Trodelvy in triple-negative breast cancer. • Lenacapavir on track for FDA decision by June 19 with potential US launch. • Operational execution with strong operating margin and EPS.

Base business excluding Veclury grew 4% year over year to $6.3 billion, primarily driven by HIV business growth. HIV sales were $4.6 billion, up 6% y/y, with Biktarvy at $3.1 billion (+7% y/y) and Descovy at $586 million (+38% y/y). Liver disease sales were $758 million, up 3% y/y. Veclury sales were $302 million, down 45% y/y. Trodelvy sales were $293 million, down 5% y/y. Cell therapy sales were $464 million, down 3% y/y.

• No changes to revenue expectations; total product sales expected $28.2-$28.6 billion. • HIV sales flat in 2025 due to Part D headwinds, returning to growth in 2026. • Veclury guidance unchanged until third-quarter earnings call. • Non-GAAP product gross margin expected 85%-86%, operating margin 43%, diluted EPS $7.70-$8.10 for full year.

• Impact from Medicare Part D redesign on HIV sales. • Tariff uncertainties affecting indirect costs. • Lower COVID-19 hospitalizations impacting Veclury sales. • Competitive headwinds in cell therapy, especially for Tecartus.

Q: Michael Yee asked about PrEP launch expectations and commercial/reimbursement dynamics.

A: Johanna Mercier discussed readiness for launch, access plans, and PrEP market growth.

Q: Carter Gould inquired about HHS/CDC cuts and impact on launch.

A: Daniel O'Day and Johanna Mercier noted no current disruptions to plans.

Q: James Shin asked about Descovy's strength and LEN's launch.

A: Johanna Mercier linked Descovy's growth to PrEP market development and lenacapavir's potential.

Q: Tyler Van Buren asked about Trodelvy's lower demand.

A: Johanna Mercier attributed it to inventory dynamics and seasonal factors.

Q: Daina Graybosch asked about USPSTF mandate for lenacapavir.

A: Johanna Mercier discussed timeline and preparation for guideline inclusion.