Gilead's Q1 Results: HIV Strength Offsets Oncology Slowdown

Gilead Sciences, a leading biopharmaceutical company, reported its first-quarter earnings for 2025, revealing a mixed performance across its portfolio. The company's HIV franchise continues to drive growth, while its oncology segment faces challenges.

HIV Business Remains Strong

Gilead's HIV drug business showcased robust performance, generating $4.6 billion in revenue, a 6% year-over-year increase. The company's once-a-day oral drug Biktarvy led the charge with $3.1 billion in sales, representing a 7% growth. Descovy, another HIV medicine, experienced a significant surge, with sales increasing by 38% to $586 million.

The company is poised for further growth in its HIV segment, with the potential FDA approval of lenacapavir, a twice-yearly injectable medicine for HIV prevention. The drug, already approved and marketed as Sunlenca for treatment-resistant HIV infections, has shown promising results in large clinical trials for pre-exposure prophylaxis (PrEP).

Oncology Portfolio Faces Headwinds

While Gilead's HIV business thrived, its oncology segment experienced a setback. The company's cancer drug portfolio generated $758 million in sales during the first quarter, marking a 4% decline compared to the same period in 2024. This downturn was primarily attributed to slower-than-expected sales of Trodelvy, Gilead's breast cancer drug, and decreased demand for its cancer cell therapies.

Despite these challenges, Gilead remains committed to its oncology investments. Recent clinical results for Trodelvy in a difficult-to-treat form of breast cancer have shown promise, potentially improving its future outlook.

Financial Performance and Market Response

Gilead reported total revenue of $6.7 billion for the first quarter, falling short of Wall Street consensus estimates. The company's shares experienced a 3% decline following the earnings announcement. However, it's worth noting that Gilead's stock has seen a significant increase of nearly 60% over the past year.

CEO Daniel O'Day expressed confidence in the company's HIV business, stating, "We haven't heard or seen anything that would cause us to alter our plans or expectations for the PrEP launch, or adversely affect our HIV business." Chief Commercial Officer Johanna Mercier echoed this sentiment, predicting continued rapid growth in the U.S. market, particularly with the upcoming launch of lenacapavir for PrEP.