RBC Capital Market views Gilead Sciences Inc's (NASDAQ: GILD) Q1 as a solid quarter, with a bottom-line beat reflecting Veklury cash flow boost, solid core business performance despite seasonal headwinds, and in-line operating expenses.
The analyst notes that the story remains somewhat catalyst light, especially with transformative M&A likely off the table.
HIV sales, particularly Biktarvy, were generally in line.
The analysts expect a rebound 2Q-4Q with aggregate sales of $12.8 billion and see little risk to HIV contributing substantially to $90 billion in base business cash flow over the next ten years. The management notes no overall changes in HIV gross/net patterns.
Core business performing well, with strong Veklury helping offset typical 1Q seasonality and setting the stage for improving HIV growth throughout the rest of the year.
Raymond James says 1Q was a benign print for Gilead, which appears focused on turning the flywheel for its existing portfolio of HIV products and oncology programs spanning cell therapy.
The analysts note that splashy M&A and biz dev has not helped GILD's valuation in recent years and may be unlikely to help now since it could simply be interpreted as waning confidence in Trodelvy, Magrolimab.
Price Action: GILD shares are down 2.79% at $59.84 during the market session on the last check Friday.
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