Gilead Raises Core Sales Outlook as Acquisition Costs Drive Loss
Second-quarter revenue rose 10% to $7.8 billion as HIV and liver-disease sales accelerated.
Gilead Sciences (GILD), the biopharmaceutical company, swung to a second-quarter loss as a series of acquisitions produced $11.2 billion in acquired research-and-development expense. The company lost $8.45 a share on a GAAP basis, compared with earnings of $1.56 a share a year earlier.
The loss obscured a pickup in the underlying business. Product sales excluding Veklury rose 10% to $7.6 billion, accelerating from 8% growth in the first quarter, while total revenue growth accelerated from 4%.
Revenue increased from $7.0 billion in the first quarter, led by stronger HIV and liver-disease sales. Non-GAAP results swung to a loss of $6.75 a share from earnings of $2.01 a share a year earlier, reflecting a $9.08-a-share impact from acquired research and development and related taxes.
HIV sales rose 12% to $5.7 billion, up from 10% growth in the previous quarter, as higher realized prices and demand supported the portfolio. Biktarvy sales increased sequentially to $3.8 billion, aided by favorable inventory dynamics, while Descovy growth accelerated to 48% and sales reached $967 million.
Liver-disease sales rose 10% to $877 million after growing 1% in the first quarter, driven by Livdelzi and additional demand for hepatitis B treatments and Hepcludex. Trodelvy sales increased sequentially to $457 million, though its year-over-year growth slowed to 26%. Cell-therapy sales declined 14% from a year earlier as competitive pressure continued, and Veklury sales fell 81% to $23 million amid lower Covid-19 hospitalization rates.
Acquisition costs drove a GAAP operating loss of $10.4 billion, compared with operating income of $2.5 billion a year earlier. Research-and-development expense rose to $1.8 billion, while selling, general and administrative expense increased to $1.9 billion because of integration costs and higher HIV promotional spending.
Gilead now expects 2026 product sales excluding Veklury of $29.8 billion to $30.1 billion, raising both ends of its previous range by $400 million. Its Veklury forecast is about $300 million, half the prior estimate. The company expects a non-GAAP loss of $0.30 to $0.65 a share, an improvement from its earlier projected loss of $0.65 to $1.05 a share, while its GAAP loss forecast widened to $3.40 to $3.75 a share.
Gilead completed purchases of Arcellx, Tubulis and Ouro Medicines to expand its cell-therapy, antibody-drug-conjugate and autoimmune pipelines. The spending reduced cash, cash equivalents and marketable debt securities to $3.2 billion from $8.6 billion at the end of March, even as quarterly operating cash flow increased to $3.6 billion.