Gilead Sciences, Inc. (GILD) Bundle
A Brief History of Gilead Sciences, Inc.
Company Overview
Gilead Sciences, Inc. is a biopharmaceutical company focused on the discovery, development, and commercialization of innovative medicines in areas of unmet medical needs. As of 2024, Gilead operates in various therapeutic areas, including HIV, liver diseases, oncology, and inflammatory diseases.
Financial Performance
In the third quarter of 2024, Gilead reported total revenues of $7.545 billion, an increase of 7% compared to $7.051 billion in Q3 2023. The breakdown of product sales is as follows:
| Category | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) | Change (%) |
|---|---|---|---|
| HIV | $5,073 | $4,667 | 9% |
| Liver Disease | $733 | $706 | 4% |
| Oncology | $816 | $769 | 6% |
| Other | $201 | $216 | (7)% |
| Total Product Sales | $7,515 | $6,994 | 7% |
For the nine months ended September 30, 2024, total revenues were $21.185 billion, up from $20.002 billion in the same period of 2023, reflecting a 6% increase.
Expenses and Profitability
Gilead's total costs and expenses for Q3 2024 were $6.657 billion, compared to $4.428 billion in Q3 2023. Major components included:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Cost of Goods Sold | $1,574 | $1,565 |
| Research and Development | $1,395 | $1,457 |
| Acquired IPR&D Expenses | $505 | $91 |
| SG&A Expenses | $1,433 | $1,315 |
Net income for Q3 2024 was $1.253 billion, down from $2.172 billion in Q3 2023, primarily due to a $1.75 billion in-process research and development impairment charge. The diluted earnings per share for the quarter were $1.00, compared to $1.73 in the prior year.
Cash Flow and Balance Sheet
As of September 30, 2024, Gilead reported cash, cash equivalents, and marketable securities totaling $5.037 billion, down from $8.428 billion at the end of 2023. Key cash flow metrics for Q3 2024 included:
| Cash Flow Activity | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $4,309 | $1,756 |
| Net Cash Used in Investing Activities | ($710) | ($229) |
| Net Cash Used in Financing Activities | ($1,379) | ($1,518) |
Free cash flow for the quarter was $4.169 billion, significantly improved from $1.633 billion in Q3 2023.
Market Trends and Guidance
Looking ahead, Gilead projects product sales for the full year 2024 to range between $27.8 billion and $28.1 billion, with non-GAAP diluted EPS expected between $4.25 and $4.45. The company continues to focus on expanding its product pipeline and enhancing its market presence across therapeutic areas.
A Who Owns Gilead Sciences, Inc. (GILD)
Major Shareholders
As of 2024, Gilead Sciences, Inc. (GILD) has a diverse ownership structure. The largest shareholders include institutional investors, mutual funds, and individual stakeholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type |
|---|---|---|
| Vanguard Group Inc. | 8.33% | Institutional Investor |
| BlackRock Inc. | 7.92% | Institutional Investor |
| State Street Corporation | 4.88% | Institutional Investor |
| FMR LLC (Fidelity) | 4.42% | Institutional Investor |
| Geode Capital Management, LLC | 2.68% | Institutional Investor |
| Invesco Ltd. | 2.45% | Institutional Investor |
| JPMorgan Chase & Co. | 2.25% | Institutional Investor |
| Other Institutional Investors | 35.93% | Institutional Investors |
| Insider Ownership | 0.78% | Insider |
| Public Float | 28.82% | Public Investors |
Institutional Ownership Trends
The institutional ownership of Gilead Sciences has seen fluctuations over the years. As of September 30, 2024, the top institutional holders have maintained their positions, with Vanguard and BlackRock being the most significant shareholders. The total institutional ownership stands at approximately 66.53%.
Insider Ownership
Insider ownership remains relatively low, with insiders holding about 0.78% of the company's stock. This reflects a common trend in large public companies where insider ownership is often limited to key executives and board members.
Stock Performance and Market Capitalization
As of the end of September 2024, Gilead Sciences had a market capitalization of approximately $52 billion. The stock has shown resilience, with a price increase of 7% year-to-date. The stock price closed at approximately $42.50 per share on September 30, 2024.
Recent Financial Performance
In the third quarter of 2024, Gilead reported total revenue of $7.5 billion, a 7% increase compared to the same period in 2023. The net income attributable to Gilead was $1.253 billion, with diluted earnings per share (EPS) of $1.00.
Dividend Policy
Gilead Sciences has a history of returning capital to shareholders through dividends. In the third quarter of 2024, the company declared dividends totaling $983 million, translating to a dividend of $0.77 per share.
Conclusion on Ownership Structure
The ownership structure of Gilead Sciences, Inc. as of 2024 demonstrates a strong presence of institutional investors, which is typical for large-cap pharmaceutical companies. The company continues to focus on growth and shareholder returns, maintaining a balanced approach to capital allocation and investment in research and development.
Gilead Sciences, Inc. (GILD) Mission Statement
Overview
The mission statement of Gilead Sciences, Inc. emphasizes its commitment to advancing innovative therapeutics to address unmet medical needs. The company aims to improve patient care by developing and commercializing medicines, particularly in the fields of HIV, liver diseases, oncology, and inflammatory diseases.
Core Values
- Innovation: Gilead is dedicated to scientific excellence and innovation, fostering a culture that encourages groundbreaking research.
- Patient Focus: The company prioritizes the needs of patients, ensuring that their therapies are accessible and effective.
- Integrity: Gilead operates with transparency and accountability in all aspects of its business.
- Collaboration: The company values partnerships with healthcare professionals, academic institutions, and other organizations to enhance its research and development efforts.
Financial Performance
As of the third quarter of 2024, Gilead reported total revenues of $7.5 billion, marking a 7% increase compared to the same period in 2023. This growth is attributed to higher sales in HIV and oncology products, as well as remdesivir (Veklury) for COVID-19 treatment.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $7.5 billion | $7.0 billion | 7% |
| HIV Product Sales | $5.1 billion | $4.7 billion | 9% |
| Liver Disease Sales | $733 million | $706 million | 4% |
| Oncology Sales | $816 million | $769 million | 6% |
| Net Income | $1.25 billion | $2.18 billion | -43% |
| Diluted EPS | $1.00 | $1.73 | -42% |
Product Portfolio
Gilead's diverse product portfolio is a key component of its mission. The company focuses on therapeutic areas where significant unmet needs exist, particularly:
- HIV: Gilead's HIV treatments, including Biktarvy and Descovy, are leading products in the market.
- Liver Diseases: The company also leads in hepatitis C treatments with products such as Sovaldi and Harvoni.
- Oncology: Gilead has expanded into oncology, with products like Yescarta for cancer treatment.
Research and Development
Research and development are pivotal to Gilead's mission. In Q3 2024, the company spent approximately $1.4 billion on R&D, reflecting its commitment to innovation.
| R&D Expense | Q3 2024 | Q3 2023 |
|---|---|---|
| R&D Expenses | $1.4 billion | $1.5 billion |
| IPR&D Expenses | $505 million | $91 million |
| IPR&D Impairment | $1.75 billion | $0 |
Market Position
Gilead Sciences holds a strong position in the biopharmaceutical market, with a focus on innovative therapies that address critical health concerns. The company continues to adapt and evolve, ensuring that its mission aligns with the changing landscape of healthcare.
Future Outlook
Looking ahead, Gilead aims to enhance its impact through potential new product launches and ongoing research initiatives. The company has set ambitious sales targets for 2024, projecting product sales between $27.8 billion and $28.1 billion for the year.
| Projected Financials for 2024 | Low End | High End |
|---|---|---|
| Product Sales | $27.8 billion | $28.1 billion |
| Non-GAAP Diluted EPS | $4.25 | $4.45 |
| Veklury Sales | $1.8 billion | $1.8 billion |
How Gilead Sciences, Inc. (GILD) Works
Company Overview
Gilead Sciences, Inc. is a biopharmaceutical company focused on the discovery, development, and commercialization of innovative medicines in areas of unmet medical need. As of 2024, Gilead operates primarily in the fields of HIV, liver diseases, oncology, and inflammation.
Financial Performance
In the third quarter of 2024, Gilead reported total revenue of $7.5 billion, reflecting a 7% increase compared to the same period in 2023. This growth was driven by higher sales in HIV, oncology, and liver disease segments.
| Category | Q3 2024 Revenue | Q3 2023 Revenue | Year-Over-Year Change |
|---|---|---|---|
| Total Revenue | $7.5 billion | $7.0 billion | 7% |
| Product Sales (Excluding Veklury) | $6.8 billion | $6.4 billion | 7% |
| HIV Product Sales | $5.1 billion | $4.7 billion | 9% |
| Liver Disease Sales | $733 million | $706 million | 4% |
| Oncology Sales | $816 million | $769 million | 6% |
| Veklury Sales | $692 million | $636 million | 9% |
Earnings and Expenses
Gilead's diluted earnings per share (EPS) for Q3 2024 stood at $1.00, down from $1.73 in Q3 2023, primarily due to a pre-tax in-process research and development (IPR&D) impairment of $1.75 billion related to assets acquired from Immunomedics, Inc.
| Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Diluted EPS | $1.00 | $1.73 |
| Non-GAAP Diluted EPS | $2.02 | $2.29 |
| Operating Income | $888 million | $2.6 billion |
| Operating Margin | 11.8% | 37.2% |
Research and Development
Gilead's investment in research and development (R&D) for Q3 2024 amounted to $1.4 billion, accounting for 18.5% of total revenues. The company incurred $505 million in acquired IPR&D expenses during the quarter.
| Expense Category | Q3 2024 Amount | Q3 2023 Amount |
|---|---|---|
| Research and Development Expenses | $1.4 billion | $1.5 billion |
| Acquired IPR&D Expenses | $505 million | $91 million |
| Selling, General and Administrative Expenses | $1.4 billion | $1.3 billion |
Cash Flow and Dividends
Gilead generated $4.3 billion in operating cash flow during Q3 2024. The company paid out $983 million in dividends and repurchased $300 million of common stock during the same period.
| Cash Flow Metrics | Q3 2024 |
|---|---|
| Operating Cash Flow | $4.3 billion |
| Dividends Paid | $983 million |
| Stock Repurchase | $300 million |
Market Position and Outlook
Gilead continues to strengthen its market position, particularly in the HIV treatment segment, where it has seen significant demand for its products. The company is also preparing for the potential launch of new therapies, including lenacapavir for HIV prevention.
As of September 30, 2024, Gilead's cash and cash equivalents were $5.0 billion, down from $8.4 billion at the end of 2023, largely due to the $3.9 billion acquisition of CymaBay Therapeutics, Inc.
How Gilead Sciences, Inc. (GILD) Makes Money
Revenue Streams
Gilead Sciences, Inc. generates revenue primarily through product sales, royalties, and other contractual revenues. For the third quarter of 2024, total revenues reached $7.5 billion, reflecting a 7% increase compared to the same quarter in 2023.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|---|
| Product Sales | $7,515 | $6,994 | 7% |
| Royalty, Contract and Other Revenues | $30 | $56 | (46)% |
| Total Revenues | $7,545 | $7,051 | 7% |
Product Sales Breakdown
The majority of Gilead's revenue comes from product sales, which include medications for HIV, liver diseases, oncology, and COVID-19. In Q3 2024, total product sales were $7.5 billion, with various segments contributing differently:
| Product Category | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) | Year-over-Year Change (%) |
|---|---|---|---|
| HIV | $5,073 | $4,667 | 9% |
| Liver Disease | $733 | $706 | 4% |
| Oncology | $816 | $769 | 6% |
| Veklury (COVID-19) | $692 | $636 | 9% |
| Other | $201 | $216 | (7)% |
Key Products Driving Revenue
The following products significantly contributed to Gilead's revenue in 2024:
- Biktarvy®: Sales increased 13% to $3.5 billion.
- Descovy®: Sales increased 15% to $586 million.
- Veklury®: Sales increased 9% to $692 million, reflecting higher COVID-19 related hospitalizations.
- Trodelvy®
Costs and Expenses
Gilead's operational costs have remained significant, impacting overall profitability. In Q3 2024, total costs and expenses were $6.7 billion:
| Expense Category | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) |
|---|---|---|
| Cost of Goods Sold | $1,574 | $1,565 |
| Research and Development | $1,395 | $1,457 |
| Acquired In-Process R&D Expenses | $505 | $91 |
| IPR&D Impairment | $1,750 | $0 |
| Selling, General and Administrative | $1,433 | $1,315 |
Profitability Metrics
In Q3 2024, Gilead reported a diluted earnings per share (EPS) of $1.00, down from $1.73 in Q3 2023, primarily due to an IPR&D impairment charge of $1.75 billion.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Diluted EPS | $1.00 | $1.73 |
| Non-GAAP Diluted EPS | $2.02 | $2.29 |
| Operating Income | $888 million | $2,623 million |
| Net Income | $1,253 million | $2,180 million |
Cash Flow and Financial Position
As of September 30, 2024, Gilead had cash, cash equivalents, and marketable securities of $5.0 billion, down from $8.4 billion at the end of 2023. In Q3 2024, Gilead generated $4.3 billion in operating cash flow.
| Cash Flow Item | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Operating Cash Flow | $4,309 | $1,756 |
| Net Cash Used in Investing Activities | ($710) | ($229) |
| Net Cash Used in Financing Activities | ($1,379) | ($1,518) |
Outlook
For the full-year 2024, Gilead expects product sales to be between $27.8 billion and $28.1 billion, with diluted EPS projected between $0.05 and $0.25.
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Updated on 16 Nov 2024
Resources:
- Gilead Sciences, Inc. (GILD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gilead Sciences, Inc. (GILD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Gilead Sciences, Inc. (GILD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.