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Dec 31, 2020
Gilead Sciences Q4 2020 Earnings Report
Gilead Sciences announced its Q4 2020 financial results, with product sales increasing primarily due to Veklury.
Key Takeaways
Gilead Sciences reported a 26% increase in total revenues for Q4 2020, primarily driven by Veklury sales. Non-GAAP diluted EPS increased by 99%, while diluted EPS decreased by 42%. The company provided full year 2021 guidance, including product sales and non-GAAP diluted EPS.
Product sales increased 26% year-over-year to $7.3 billion, primarily due to Veklury.
Diluted EPS was $1.23, a decrease of 42% year-over-year.
Non-GAAP diluted EPS was $2.19, an increase of 99% year-over-year.
Veklury sales contributed $1.9 billion to product sales.
Gilead Sciences
Gilead Sciences
Gilead Sciences Revenue by Segment
Gilead Sciences Revenue by Geographic Location
Revenue by Segment
HIV Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comEurope Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
Gilead provided full year 2021 guidance for product sales, product gross margin, R&D and SG&A expenses, operating income, effective tax rate, and diluted EPS.
Positive Outlook
- Product sales excluding Veklury sales are projected to be $21.7 billion to $22.1 billion.
- Veklury sales are projected to be $2.0 billion to $3.0 billion.
- Non-GAAP product gross margin is projected to be 87% to 88%.
- Non-GAAP R&D and SG&A expenses are expected to remain flat to low single-digit percentage decline.
- Non-GAAP diluted EPS is projected to be $6.75 to $7.45.
Challenges Ahead
- Veklury sales are subject to significant volatility and uncertainty due to the dynamic global health environment.
- The financial guidance excludes the effects of any potential future strategic acquisitions, collaborations and investments.
- The guidance is subject to a number of risks and uncertainties.
- The COVID-19 pandemic continues to impact Gilead’s business and broader market dynamics, including HCV and HIV market volume.
- Truvada and Atripla sales are expected to continue to decline as multiple generics are expected to enter the market.