Gilead Sciences Q1 2021 Earnings Report
Key Takeaways
Gilead Sciences reported a strong first quarter in 2021, with total revenue increasing by 16% to $6.4 billion. This growth was primarily driven by sales of Veklury, along with contributions from Cell Therapy products and the U.S. launch of Tecartus. The company also saw growth in its Hepatitis B virus (HBV) segment with Vemlidy.
Total first quarter revenue increased 16% year-over-year to $6.4 billion.
Diluted EPS increased 12% to $1.37, while non-GAAP diluted EPS increased 24% to $2.08.
HIV product sales decreased 12% to $3.7 billion, impacted by loss of exclusivity of Truvada and Atripla in the U.S.
Veklury sales were $1.5 billion, influenced by COVID-19 infection rates, hospitalizations, and vaccinations.
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Gilead Sciences Revenue by Segment
Gilead Sciences Revenue by Geographic Location
Forward Guidance
Gilead expects the COVID-19 pandemic to continue impacting its business, with a more gradual recovery starting in Q2 2021. Veklury sales will remain volatile and uncertain. Full year 2021 product sales excluding Veklury are expected to be between $21.7 billion and $22.1 billion. Full year Veklury sales are projected to be between $2 billion and $3 billion. Total product sales for 2021 are expected to be between $23.7 billion and $25.1 billion. Non-GAAP earnings per share for 2021 are projected to be between $6.75 and $7.45. GAAP earnings per diluted share for 2021 are now expected to be between $4.75 and $5.45.
Positive Outlook
- Full year product sales excluding Veklury between $21.7 billion and $22.1 billion.
- Full year Veklury sales between $2 billion and $3 billion.
- Total product sales for 2021 between $23.7 billion and $25.1 billion.
- Non-GAAP earnings per share for 2021 between $6.75 and $7.45.
- Collaboration with Merck to develop and commercialize long-acting HIV therapies.
Challenges Ahead
- COVID-19 pandemic continues to impact business and market dynamics.
- Sales of Veklury subject to significant volatility and uncertainty.
- Potential adverse revenue impacts from COVID-19.
- Increases in R&D expenses.
- Uncertainties related to the development, manufacturing, and distribution of Veklury.