Jun 30, 2021

Gilead Sciences Q2 2021 Earnings Report

Gilead Sciences' financial performance was solid, driven by Veklury and Biktarvy sales growth and progress in its diverse portfolio.

Key Takeaways

Gilead Sciences announced a 21% increase in total revenue for the second quarter of 2021, reaching $6.2 billion. This growth was primarily driven by sales of Veklury, Biktarvy, and HCV products. The company's EPS increased to $1.21, and non-GAAP EPS increased 68% to $1.87.

Total second quarter revenue increased 21% year-over-year to $6.2 billion.

Biktarvy sales increased 24% year-over-year, reflecting higher demand in all geographies.

Cell Therapy product sales increased 39% year-over-year to $219 million.

Gilead updated its full-year guidance, expecting total product sales between $24.4 billion and $25.0 billion.

Total Revenue
$6.22B
Previous year: $5.14B
+20.9%
EPS
$1.87
Previous year: $1.11
+68.5%
Product gross margin
77.4%
Previous year: 79%
-2.0%
Gross Profit
$4.83B
Previous year: $4.08B
+18.3%
Cash and Equivalents
$4.89B
Previous year: $21.2B
-76.9%
Free Cash Flow
$2.2B
Previous year: $2.42B
-9.3%
Total Assets
$68B
Previous year: $55.9B
+21.5%

Gilead Sciences

Gilead Sciences

Gilead Sciences Revenue by Segment

Gilead Sciences Revenue by Geographic Location

Forward Guidance

Gilead has updated its full-year guidance, and now expects:

Positive Outlook

  • Total product sales between $24.4 billion and $25.0 billion.
  • Total product sales, excluding Veklury, between $21.7 billion and $21.9 billion.
  • Total Veklury sales between $2.7 billion and $3.1 billion.
  • GAAP earnings per share between $4.70 and $5.05.
  • Non-GAAP earnings per share between $6.90 and $7.25.

Challenges Ahead

  • Longer than expected pandemic impact on our HIV business, including the latest increase in COVID-19 cases.
  • Continued uncertainties around the path of the pandemic since Veklury revenue tends to track hospitalization rates.
  • The financial guidance is subject to a number of risks and uncertainties, including uncertainty around the duration and magnitude of the COVID-19 pandemic.
  • The rate and degree of these impacts as well as the corresponding recovery from the pandemic may vary across Gilead’s business.
  • Potential adverse revenue impacts from COVID-19, increases in R&D expenses and potential revenues from Veklury.