Gilead Sciences' recent financial disclosures for the third quarter of 2025 present a nuanced picture of its market position, marked by the promising introduction of its new HIV prevention treatment, Yeztugo, alongside a rebalancing of its product portfolio revenues. The biopharmaceutical giant experienced a dip in overall product sales, primarily driven by a sharp decline in demand for its COVID-19 treatment, Veklury. However, excluding this anomaly, the company's core product segments, particularly its robust HIV franchise led by Biktarvy, demonstrated underlying strength and growth.
The successful early rollout of Yeztugo, characterized by rapid insurance integration and favorable patient cost structures, signals a potential future growth driver. Despite initial sales figures slightly below the most optimistic projections, the trends suggest increasing market penetration and physician adoption. This development, coupled with an upward revision of the lower boundary of its full-year financial outlook, points to a strategic adaptation and resilience in navigating a dynamic healthcare market, solidifying its commitment to addressing critical health needs while maintaining investor confidence.
Yeztugo's Promising Debut and Market Dynamics
Gilead's new HIV prevention drug, Yeztugo, an injection administered twice annually, has shown early signs of success in preventing HIV infection in high-risk individuals. The third-quarter sales reached $39 million, slightly exceeding analyst expectations, although some buy-side forecasts were more optimistic. A significant achievement was securing 75% insurance coverage in the U.S. three months ahead of schedule, with approximately 80% of patients benefiting from $0 co-pays and streamlined authorization processes. This rapid market access and affordability are crucial for the drug's long-term growth potential and highlight Gilead's effective market penetration strategy. However, concerns persist regarding the lack of specific details from management on coverage and the absence of a deal with CVS Health, which controls a substantial portion of the market, indicating potential challenges in fully maximizing Yeztugo's reach. Management also anticipates some volatility in prescription data during the initial quarters.
Despite these challenges, the favorable insurance landscape and minimal patient out-of-pocket costs are strong indicators for sustained growth, particularly looking ahead to 2026. The analyst community, while acknowledging the initial revenue figures, sees these trends as incrementally increasing confidence in Yeztugo's future. The strategic importance of this new drug is undeniable, positioning Gilead at the forefront of HIV prevention with an innovative, less frequent dosing regimen. Addressing the remaining coverage gaps, especially with major pharmacy benefit managers like CVS Health, will be key to unlocking Yeztugo's full market potential and firmly establishing it as a significant contributor to Gilead's revenue stream in the coming years. This initial phase marks a crucial step in the drug's journey, setting the stage for its broader impact on public health and the company's financial trajectory.
Product Portfolio Performance and Financial Outlook Revision
Gilead's overall product sales for the quarter amounted to $7.35 billion, falling short of the $7.43 billion consensus forecast and representing a more than 2% decrease year-over-year. This shortfall was primarily attributable to a substantial 60% decline in sales of Veklury, the company's COVID-19 treatment, which generated only $277 million against an estimated $333 million. The company attributed this drop to reduced COVID-19 hospitalization rates. However, excluding Veklury, product sales demonstrated a healthy 4% increase, reaching $7.1 billion, closely aligning with analyst predictions for core business performance. Total revenue, encompassing royalties and other income, grew by 6% to $7.77 billion, reflecting diverse income streams.
Within the HIV franchise, which accounts for roughly half of all product sales, Biktarvy, the top-selling HIV treatment, slightly exceeded expectations with $3.69 billion in sales, a 6% increase from the previous year. The broader HIV treatment segment saw a 4% rise to $5.28 billion, including a strong performance from Descovy, whose sales surged by nearly 20% to $701 million, surpassing projections. Liver disease treatments also contributed positively, with sales climbing 12% to $819 million, driven by demand for Livdelzi. Conversely, cell therapy sales, including Yescarta and Tecartus, and another cancer medicine, Trodelvy, experienced declines or fell short of expectations. Despite these varied performances, Gilead revised the lower end of its full-year product sales outlook to $27.4 million, aligning with analyst consensus for $28.71 billion, and increased its full-year earnings guidance's lower bound to $8.05 per share, exceeding the $8.04 analyst estimate. This upward adjustment indicates cautious optimism in the company's financial trajectory despite the challenges presented by its diverse product lines.