Gilead Sciences (GILD) revenue in the third quarter was 8.30 billion USD (+6.8% y/y), while earnings per share (GAAP) fell by 20.2% y/y to 1.94 USD.

Quarterly results#

Earnings per share (GAAP, basic) was 1.96 USD (−20.3% y/y), while adjusted earnings per share increased by 3.2% y/y to 2.55 USD. Operating income reached 3.46 billion USD (+4.1% y/y), with an operating margin at 41.7% (−1.1 pp y/y).

Management commentary#

According to management, the HIV segment benefited from favorable pricing in certain channels and demand, and Biktarvy’s market share continues to grow. Management emphasized that the company is focused on growth in the areas of oncology and inflammatory diseases. According to management, weekly oral HIV prevention is intended to reach individuals who prefer long-acting medications instead of injections. Management indicated that the way drug pricing is established under the IRA act may threaten investments in new products next year. According to management, the impact of new prices primarily concerns the Medicare program and manifests as a spillover effect to other sales channels. Management expressed satisfaction that the company absorbed the costs of newly acquired programs this year and intends to continue this process in the following years.