Gilead's HIV Portfolio Drives Growth Amid Cell Therapy Challenges

Gilead Sciences reported a mixed bag of results in its third-quarter earnings, with its HIV franchise showing strong performance while cell therapy sales continue to decline. The California-based pharmaceutical company's total revenue increased by 3% compared to the same period last year, despite a 2% slide in overall product sales.

Yeztugo Launch Bolsters HIV Franchise

Gilead's long-acting HIV pre-exposure prophylaxis (PrEP) medication, Yeztugo, has made a significant impact since its U.S. launch in June. The drug garnered $54 million in sales in its first five months on the market, with $39 million generated in the third quarter alone. Gilead has already secured 75% U.S. payer access for Yeztugo, three months ahead of its original six-month target, with 90% coverage expected by the end of the first half of 2026.

The company's HIV franchise continues to be a major revenue driver, contributing $5.3 billion of Gilead's $7.3 billion in third-quarter sales. Biktarvy, Gilead's combination treatment pill, remains the standout performer, generating $3.7 billion in sales and capturing 52% of the U.S. HIV treatment market share.

Descovy, Gilead's older once-daily PrEP pill, also showed strong performance, securing a record 45% of the U.S. PrEP market share and delivering a 20% year-over-year sales increase. This growth has prompted Gilead to boost its overall HIV sales growth forecast for the year from 3% to 5%.

Cell Therapy Struggles and Other Challenges

While Gilead's HIV portfolio flourishes, its cell therapy products Yescarta and Tecartus continue to face headwinds. Yescarta sales declined by 10% to $349 million, while Tecartus sales dropped 15% to $83 million. The company attributes these declines to "competitive headwinds from in- and out-of-class therapies."

Despite these challenges, Gilead remains committed to increasing the adoption and utilization of cell therapies. The company has established approximately 40 approved treatment centers this year to support this goal.

Sales of Veklury, Gilead's COVID-19 medication, also contributed to the overall decline in product sales. However, the company's liver disease medication, Lizdelvi, has emerged as a growth star, showing 35% sequential growth to $105 million. Just over a year since its approval for primary biliary cholangitis (PBC), Lizdelvi has become the top product for second-line treatment of the liver disease.