Remdesivir

Second quarter performance driven by strong portfolio royalty revenue growth of 57% 2025 full year revenue guidance increased to $200 million - $225 million (previously $180 million - $200 million) and adjusted earnings per diluted share1 increased to $6.70 - $7.00 (previously $6.00 - $6.25) Conference call begins at 8:30 a.m. Eastern Time today JUPITER, Fla., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) today reported financial results for the three and six months ended June 30, 2025, and provided an operating forecast and business update. Ligand management will host a conference call and webcast today at 8:30 a.m. Eastern Time to discuss the results and answer questions. “We are pleased to announce an increase to our 2025 guidance reflecting the continued strength and growth of our commercial-stage royalty portfolio.” said Todd Davis, CEO of Ligand. “This quarter there were several key milestones across our portfolio including the commercial launch of Zelsuvmi by our partner Pelthos and Merck's recently announced acquisition of our partner, Verona, which is expected to further accelerate the launch trajectory of Ohtuvayre in COPD and its clinical development in other indications. These achievements reflect the significant value of our partnerships and our comprehensive asset selection process, which continue to validate our robust and differentiated royalty aggregation model.” Second Quarter 2025 Financial Results Total revenues and other income for the second quarter of 2025 were $47.6 million, compared with $41.5 million for the same period in 2024, with the 15% increase primarily attributable to an increase in royalty revenue. Royalties for the second quarter of 2025 were $36.4 million, compared with $23.2 million for the same period in 2024, with the 57% increase primarily attributable to royalties earned on Recordati’s Qarziba, and Travere Therapeutics’ Filspari. Captisol® sales were $8.3 million for the second quarter of 2025, compared with $7.5 million for the same period in 2024, with the change due to the timing of customer orders. Contract revenue and other income was $2.9 million for the second quarter of 2025, compared with $10.9 million for the same period in 2024, with the difference due to the timing of partner milestone events. Cost of Captisol was $2.9 million and amortization of intangibles was $8.3 million for each of the second quarters of 2025 and 2024. Research and development expenses were $6.6 million for the second quarter of 2025, compared with $5.4 million for the same period in 2024, with the increase primarily attributable to expenses incurred by Pelthos in preparation for the commercial launch of Zelsuvmi. General and administrative expenses were $20.2 million for the second quarter of 2025, compared with $17.6 million for the same period in 2024, with the increase primarily attributable to employee related costs and operating costs associated with incubating the Pelthos business. Fair value adjustment to partner program derivatives was $1.3 million for the second quarter of 2025 primarily due to mark to market adjustments to certain Agenus partnered programs. In the second quarter of 2024 Ligand recorded a $26.5 million financial asset impairment tied to Takeda’s Soticlestat program which resulted from missing its Phase 3 clinical trial primary endpoint. GAAP net income was $4.8 million, or $0.24 per diluted share for the second quarter of 2025, compared with GAAP net loss of $51.9 million, or $2.88 per share, for the same period in 2024. Core adjusted net income for the second quarter of 2025 was $32.0 million, or $1.60 per diluted share, compared to $25.8 million, or $1.40 per diluted share, for the same period in 2024. The increase in core adjusted net income was driven primarily by the 15% increase in revenue and other income. Core adjusted net income represents a non-GAAP financial measure. See the table below for a reconciliation of net income (loss) to core adjusted net income. As of June 30, 2025, Ligand had cash, cash equivalents and short-term investments of $245.0 million, which includes $26.5 million in Viking Therapeutics common stock. Year-to-Date Financial Results Total revenues and other income for the six months ended June 30, 2025 were $93.0 million, compared with $72.5 million for the same period in 2024, with the 28% increase primarily attributable to an increase in royalty revenue and Captisol sales. Royalties for the six months ended June 30, 2025 were $63.9 million, compared with $42.3 million for the same period in 2024, with the 51% increase primarily attributable to royalties earned on Recordati’s Qarziba, and Travere Therapeutics’ Filspari. Captisol sales were $21.7 million for the six months ended June 30, 2025, compared with $16.7 million for the same period in 2024, with the change due to the timing of customer orders. Contract revenue and other income was $7.3 million for the six months ended June 30, 2025, compared with $13.5 million for the same period in 2024, with the difference due to the timing of partner milestone events. Cost of Captisol was $7.8 million for the six months ended June 30, 2025, compared with $5.8 million for the same period in 2024, with the change due to an increase in Captisol sales. Amortization of intangibles was $16.5 million for the six months ended June 30, 2025, compared with $16.4 million for the same period in 2024. Research and development expenses were $56.7 million for the six months ended June 30, 2025, compared with $11.3 million for the same period in 2024, with the increase primarily attributable to a $44.3 million one-time charge in connection with Ligand’s previously announced royalty financing agreement with Castle Creek Biosciences to fund the Phase 3 clinical study of D-Fi (FCX-007), which was accounted for as a research and development funding arrangement under ASC 730-20, Research and Development Arrangements. General and administrative expenses were $39.0 million for the six months ended June 30, 2025, compared with $28.6 million for the same period in 2024, with the increase primarily attributable to employee related costs and operating costs associated with incubating the Pelthos business. Fair value adjustment to partner program derivatives was $0.8 million for the six months ended June 30, 2025 primarily due to mark to market adjustments to certain Agenus partnered programs. Financial royalty assets impairment was $26.5 million for the six months ended June 30, 2024 due to Takeda’s Soticlestat missing its Phase 3 clinical trial primary endpoint of reducing the frequency of convulsive seizures for patients with Dravet Syndrome. GAAP net loss was $37.6 million, or $1.95 per share for the six months ended June 30, 2025, compared with GAAP net gain of $34.2 million, or $1.87 per diluted share, for the same period in 2024. Core adjusted net income for the six months ended June 30, 2025 was $58.6 million, or $2.94 per diluted share, compared to $47.6 million, or $2.61 per diluted share, for the same period in 2024. Core adjusted net income excluded gains from the sale of Viking Therapeutics common stock during the six months ended June 30, 2024. Ligand did not sell any shares of Viking Therapeutics common stock during the six months ended June 30, 2025. The increase in core adjusted net income was driven primarily by the 28% increase in revenue and other income. Core adjusted net income represents a non-GAAP financial measure. See the table below for a reconciliation of net income (loss) to core adjusted net income. 2025 Financial Guidance Ligand is increasing its 2025 full year financial guidance. The Company now expects total revenue of $200 million to $225 million (previously $180 million to $200 million) and is raising its guidance on adjusted earnings per diluted share1 to $6.70 to $7.00 (previously $6.00 to $6.25). Royalties are now expected to be in the range of $140 million to $150 million (previously $135 million to $140 million). Sales of Captisol are unchanged from $35 million to $40 million and contract revenue is now in the range of $25 million to $35 million (previously $10 million to $20 million). Second Quarter 2025 and Corporate Highlights Pelthos Therapeutics Transaction On July 2, 2025, Ligand announced the completion of its previously announced merger between the Company's wholly owned subsidiary, LNHC, Inc., and CHRO Merger Sub Inc., a wholly owned subsidiary of Channel Therapeutics Corporation (“Channel”). The combined company operates under the name Pelthos Therapeutics Inc. (“Pelthos”) and trades on the NYSE American exchange under the ticker symbol “PTHS”. Concurrent with the merger, Pelthos raised $50.1 million of equity capital, including a private placement from a group of strategic investors led by Murchinson (“Investor Group” and together with Ligand, the “Investors”). The Investor Group invested $32 million and Ligand invested $18 million in the combined company, respectively. The capital was invested into Pelthos’ Series A Convertible Preferred Stock (“Series A”) and common stock and includes cancellation of approximately $18.8 million in bridge capital that was advanced to Pelthos by several of the Investors (including Ligand) since the beginning of 2025 to support the commercial launch of Zelsuvmi. On July 10, 2025, Pelthos commercially launched Zelsuvmi (berdazimer) topical gel 10.3%, the first and only U.S. Food and Drug Administration (FDA) approved at-home treatment for molluscum contagiosum. Ligand earned a $5 million milestone payment from Pelthos following the commercial launch of Zelsuvmi. Ligand is also entitled to a 13% royalty on worldwide sales of Zelsuvmi, excluding Japan, and up to an additional $5 million in commercial sales milestones. New Royalty Investment in Orchestra BioMed On August 4, 2025, Ligand invested $25 million in strategic capital to fund Orchestra BioMed's late-stage partnered cardiology programs with an additional $15 million to be funded, subject to certain conditions precedent, at the nine-month anniversary of the transaction closing date. Ligand's investment included a $20 million cash payment and an additional $5 million in an equity private placement at the public offering price of $2.75 per share in Orchestra BioMed’s public offering. In exchange, Ligand will receive a low double-digit royalty on the first $100 million in commercial revenues from Orchestra’s AVIM therapy and Virtue SAB programs in all indications. Ligand will also earn a mid-single-digit royalty on annual revenues exceeding $100 million in commercial revenues from AVIM therapy in the uncontrolled hypertension and increased cardiovascular risk indication and Virtue SAB in coronary artery disease indications. Portfolio Updates On July 9, 2025, Merck and Verona announced a definitive agreement under which Merck, through a subsidiary, will acquire Verona for $107 per American Depository Share (ADS), each of which represents eight Verona ordinary shares, for a total transaction value of approximately $10 billion. Verona's portfolio includes Ohtuvayre, which was approved by the FDA in June 2024 for the maintenance treatment of COPD in adult patients. Ligand receives a 3% royalty on Ohtuvayre sales. On July 7, 2025, Agenus announced that its botensilimab and balstilimab (BOT/BAL) combination achieved a two-year survival rate of 42% along with a more mature 21-month median overall survival in an expanded cohort of 123 patients with microsatellite-stable (MSS) metastatic colorectal cancer (mCRC) without active liver metastases (NLM). Agenus also confirmed that it has reached agreement with the FDA on the design of the global BATTMAN Phase 3 trial. The FDA waived the need for a BOT monotherapy arm, allowing for a simple two-arm study design. On June 23, 2025, Palvella Therapeutics announced the full enrollment in SELVA, a Phase 3 trial of Qtorin 3.9% rapamycin anhydrous gel (Qtorin rapamycin) for the treatment of microcystic lymphatic malformations (microcystic LMs). The Phase 3 trial enrolled 51 subjects, exceeding the original target of 40 subjects by over 25%. Top-line results from SELVA are expected in the first quarter of 2026, with a New Drug Application (NDA) submission planned for the second half of 2026. On June 3, 2025, Agenus announced it entered into a partnership agreement with Zydus designed to accelerate clinical development, scale global manufacturing, and expand patient access to BOT/BAL. The strategic collaboration includes an exchange of Agenus’ state-of-the-art biologics CMC facilities in Emeryville, CA and Berkeley, CA for an upfront consideration of $75 million. Moreover, Agenus will receive up to an additional $50 million in contingent payments triggered by BOT/BAL production orders. This collaboration enables Agenus to unlock the value of its manufacturing assets and secure strategic capital to drive BOT/BAL toward global regulatory engagement and commercialization. On May 23, 2025, CSL Vifor announced that the National Institute for Health and Care Excellence (NICE) has published final draft guidance recommending that Filspari can be used in the NHS in England as an option to treat primary IgA nephropathy in adults with a urine protein excretion of 1.0 g/day or more, or a urine protein-to-creatinine ratio of 0.75 g/g or more. On May 16, 2025, Nuance announced top-line results from the Phase 3 ENHANCE-CHINA trial which evaluated nebulized ensifentrine (marketed as Ohtuvayre in the U.S.) for the maintenance treatment of chronic obstructive pulmonary disease (COPD). The ENHANCE-CHINA trial successfully met its primary endpoint, as well as secondary endpoints demonstrating improvements in lung function. On May 15, 2025, Travere announced that the FDA accepted its supplemental New Drug Application (sNDA) for traditional approval of Filspari (sparsentan) for the treatment of focal segmental glomerulosclerosis (FSGS). The FDA has assigned a Prescription Drug User Fee Act (PDUFA) target action date of January 13, 2026, and has indicated that it is currently planning to hold an advisory committee meeting to discuss the application. Additionally, Travere continues to expect a PDUFA target action date of August 28, 2025 for its sNDA requesting modification of liver monitoring and removal of embryo-fetal toxicity monitoring REMS for Filspari for the treatment of adults with primary immunoglobulin A nephropathy (IgAN) who are at risk for disease progression. Adjusted Financial Measures Ligand reports adjusted net income from continuing operations, adjusted net income per diluted share and adjusted earnings per diluted share in addition to, not as a substitute for, and does not consider such measures superior to, financial measures calculated in accordance with GAAP. The Company also reports a core calculation for each of the foregoing measures which excludes any realized gain from sales of Viking Therapeutics common stock. Additionally, adjusted earnings per diluted share is a key component of the financial metrics utilized by the Company’s board of directors to measure, in part, management’s performance and determine significant elements of management’s compensation. The Company’s financial measures under GAAP include share-based compensation expense, amortization of debt-related costs, amortization related to acquisitions and intangible assets, changes in contingent liabilities, mark-to-market adjustments for amounts relating to its equity investments in public companies, excess tax benefit from share-based compensation, transaction costs, income tax effect of adjusted reconciling items and others that are listed in the itemized reconciliations between GAAP and non-GAAP adjusted financial measures included at the end of this press release. A reconciliation of forward-looking non-GAAP adjusted earnings per diluted share to the most directly comparable GAAP measures is not available without unreasonable effort, as certain items cannot be reasonably predicted because of their high variability, complexity and low visibility. Specifically, non-cash adjustments that could be made for changes in contingent liabilities, changes in the market value of its investments in public companies, share-based compensation expense and the effects of any discrete income tax items, directly impact the calculations of our adjusted earnings per diluted share, which we expect to have a significant impact on our future GAAP financial results. Conference Call and Webcast Ligand management will host a conference call today beginning at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss this announcement and answer questions. To participate via telephone, please dial (800) 715-9871 using the conference ID 3661098. International participants outside of Canada may use the toll number +1(646) 307-1963. To participate via live or replay webcast, a link is available at www.ligand.com. About Ligand Pharmaceuticals Ligand is a biopharmaceutical company enabling scientific advancement through supporting the clinical development of high-value medicines. Ligand does this by providing financing, licensing our technologies or both. Our business model seeks to generate value for stockholders by creating a diversified portfolio of biotech and pharmaceutical product revenue streams that are supported by an efficient and low corporate cost structure. Our goal is to offer investors an opportunity to participate in the promise of the biotech industry in a profitable and diversified manner. Our business model is based on funding programs in mid- to late-stage drug development in return for economic rights, purchasing royalty rights in development stage or commercial biopharmaceutical products and licensing our technology to help partners discover and develop medicines. We partner with other pharmaceutical companies to attempt to leverage what they do best (late-stage development, regulatory management and commercialization) in order to generate our revenue. We operate two infrastructure-light royalty generating technology IP platform technologies. Our Captisol® platform technology is a chemically modified cyclodextrin with a structure designed to optimize the solubility and stability of drugs. Our NITRICIL™ platform technology facilitates tunable dosing, permitting an adjustable drug release profile to allow proprietary formulations that target a broad range of indications. We have established multiple alliances, licenses and other business relationships with the world’s leading pharmaceutical companies including Amgen, Merck, Pfizer, Jazz, Gilead Sciences and Baxter International. For more information, please visit www.ligand.com. Follow Ligand on X and LinkedIn. We use our investor relations website and X as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Investors should monitor our website and our X account, in addition to following our press releases, SEC filings, public conference calls and webcasts. Forward-Looking Statements This press release contains forward-looking statements, as defined in Section 21E of the Securities Exchange Act of 1934, regarding Ligand’s current expectations. All statements, other than statements of historical fact, could be deemed to be forward-looking statements. In some instances, words such as “plans,” “believes,” “expects,” “anticipates,” and “will,” and similar expressions, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect our good faith beliefs (or those of the indicated third parties) and speak only as of the date hereof. These forward-looking statements include, without limitation, Ligand’s ability to expand its portfolio with life sciences royalty opportunities; the timing of clinical and regulatory events of Ligand’s partners and other commercialization and marketing efforts; the timing of the initiation or completion of preclinical studies and clinical trials by Ligand and its partners; the timing of product launches by Ligand or its partners; and guidance regarding projected 2025 financial results. Actual events or results may differ from Ligand’s expectations due to risks and uncertainties inherent in Ligand’s business, including, without limitation: Ligand relies on collaborative partners for milestone payments, royalties, materials revenue, contract payments and other revenue projections and may not receive expected revenue; Ligand may not receive expected revenue from Captisol material sales; Ligand and its partners may not be able to timely or successfully advance any product(s) in its internal or partnered pipeline or receive regulatory approval and there may not be a market for the product(s) even if successfully developed and approved; Ligand may not achieve its financial guidance for 2025; Ligand faces competition in acquiring royalties and locating suitable royalties to acquire; Ligand may not be able to create future revenues and cash flows through the acquisition of royalties or by developing innovative therapeutics; products under development by Ligand or its partners may not receive regulatory approval; the total addressable market for our partners’ products may be smaller than estimated; Ligand faces competition with respect to its technology platforms which may demonstrate greater market acceptance or superiority; Ligand is currently dependent on a single source sole supplier for Captisol and failures by such supplier may result in delays or inability to meet the Captisol demands of its partners; Ligand’s partners may change their development focus and may not execute on their sales and marketing plans for marketed products for which Ligand has an economic interest; Ligand’s collaboration partners may become insolvent; Ligand’s and its partners’ products may not be proved to be safe and efficacious and may not perform as expected and uncertainty regarding the commercial performance of such products; Ligand or its partners may not be able to protect their intellectual property and patents covering certain products and technologies may be challenged or invalidated; cyber-attacks or other failures in telecommunications or information technology systems could result in information theft, data corruption and significant disruption to Ligand’s business operations; Ligand’s partners may terminate any of their agreements or the development or commercialization of any of its products; Ligand and its partners may experience delays in the commencement, enrollment, completion or analysis of clinical testing for its product candidates, or significant issues regarding the adequacy of its clinical trial designs or the execution of its clinical trials, challenges, costs and charges associated with integrating acquisitions with Ligand’s existing businesses; Ligand may not be able to successfully implement its strategic growth plan and continue the development of its proprietary programs; restrictions under Ligand’s credit agreement may limit its flexibility in operating its business and a default under the agreement could result in a foreclosure of the collateral securing such obligations; and changes in general economic conditions, including as a result of war, conflict, epidemic diseases, the imposition and/or announcement of tariffs and ongoing or future litigation could expose Ligand to significant liabilities and have a material adverse effect on the Company. The failure to meet expectations with respect to any of the foregoing matters may reduce Ligand’s stock price. Additional information concerning these and other risk factors affecting Ligand can be found in prior press releases available at www.ligand.com as well as in Ligand’s public periodic filings with the Securities and Exchange Commission available at www.sec.gov. Ligand disclaims any intent or obligation to update these forward-looking statements beyond the date of this release, including the possibility of additional license fees and milestone revenues we may receive. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Other Disclaimers and Trademarks The information in this press release regarding certain third-party products and programs, including Filspari, a Travere Therapeutics product, Ohtuvayre, a Verona Pharma product, and QTORIN rapamycin, a Palvella Therapeutics product candidate, comes from information publicly released by the owners of such products and programs. Ligand is not responsible for, and has no role in, the development of such products or programs. Ligand owns or has rights to trademarks and copyrights that it uses in connection with the operation of its business including its corporate name, logos and websites. Other trademarks and copyrights appearing in this press release are the property of their respective owners. The trademarks Ligand owns include Ligand, Captisol, NITRICIL and Zelsuvmi. Solely for convenience, some of the trademarks and copyrights referred to in this press release are listed without the®,© and™ symbols, but Ligand will assert, to the fullest extent under applicable law, its rights to its trademarks and copyrights. References to “Ligand,” the “Company,” “we,” “our” and similar expressions include Ligand Pharmaceuticals Incorporated and our wholly-owned subsidiaries. Contacts: Investors: Melanie Herman investors@ligand.com (858) 550-7761 Media:Kellie Walshmedia@ligand.com(914) 315-6072 LIGAND PHARMACEUTICALS INCORPORATEDCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited, in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues and other income: Revenue from intangible royalty assets$30,084 $22,603 $51,671 $40,960 Income from financial royalty assets 6,313 559 12,215 1,297 Royalties 36,397 23,162 63,886 42,257 Captisol 8,287 7,500 21,747 16,712 Contract revenue and other income 2,943 10,869 7,327 13,540 Total revenues and other income 47,627 41,531 92,960 72,509 Operating costs and expenses: Cost of Captisol 2,907 2,906 7,756 5,788 Amortization of intangibles 8,258 8,257 16,515 16,443 Research and development 6,567 5,354 56,652 11,325 General and administrative 20,175 17,623 38,976 28,574 Financial royalty assets impairment — 26,491 — 26,491 Fair value adjustments to partner program derivatives 1,276 — 833 — Total operating costs and expenses 39,183 60,631 120,732 88,621 Income (loss) from operations 8,444 (19,100) (27,772) (16,112)Non-operating income and expenses: Gain (loss) from short-term investments 939 (14,256) (11,428) 96,516 Interest income, net 468 1,489 1,372 3,366 Other non-operating expense, net 1,372 (33,523) (1,129) (35,713)Total other income (loss), net 2,779 (46,290) (11,185) 64,169 Income (loss) before income taxes 11,223 (65,390) (38,957) 48,057 Income tax (expense) benefit (6,376) 13,479 1,353 (13,829)Net income (loss)$4,847 $(51,911) $(37,604) $34,228 Basic net income (loss) per share$0.25 $(2.88) $(1.95) $1.91 Shares used in basic per share calculation 19,327 18,028 19,259 17,880 Diluted net income (loss) per share$0.24 $(2.88) $(1.95) $1.87 Shares used in diluted per share calculation 19,926 18,028 19,259 18,282 LIGAND PHARMACEUTICALS INCORPORATEDCONDENSED CONSOLIDATED BALANCE SHEETS(unaudited, in thousands) June 30, 2025 December 31, 2024Assets Current assets: Cash, cash equivalents and short-term investments$245,020 $256,165Accounts receivable, net 41,288 38,376Inventory 15,489 14,114Short-term portion of financial royalty assets, net 10,276 10,025Income taxes receivable 828 4,073Other current assets 4,816 8,806Assets held for sale 35,228 —Total current assets 352,945 331,559 Goodwill and other intangible assets, net 351,674 371,898Long-term portion of financial royalty assets, net 193,556 185,024Noncurrent derivative assets 17,958 10,583Property and equipment, net 3,632 15,133Operating lease right-of-use assets 5,573 6,907Finance lease right-of-use assets 2,418 2,766Other investments 10,908 10,908Deferred income taxes, net 829 72Other assets 9,111 6,924Total assets$948,604 $941,774 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued liabilities$26,048 $33,139Income taxes payable 305 1,199Deferred revenue 111 1,278Current contingent liabilities 1,465 206Current operating lease liabilities 1,089 1,266Current finance lease liabilities 24 24Liabilities related to assets held for sale 35,692 —Total current liabilities 64,734 37,112 Long-term contingent liabilities 4,097 3,475Long-term operating lease liabilities 4,629 5,815Deferred income taxes, net 32,246 32,524Other long-term liabilities 14,369 32,409Total liabilities 120,075 111,335 Total stockholders' equity 828,529 830,439Total liabilities and stockholders' equity$948,604 $941,774 LIGAND PHARMACEUTICALS INCORPORATEDADJUSTED FINANCIAL MEASURES(Unaudited, in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss)$4,847 $(51,911) $(37,604) $34,228 Adjustments: Share-based compensation expense 9,997 11,060 17,833 18,394 Non-cash interest expense(1) 1,054 1,207 1,816 1,291 Amortization of intangible assets 8,258 8,257 16,515 16,443 Amortization of financial royalty assets(2) 4,177 962 6,742 4,224 Change in contingent liabilities(3) 52 1,233 1,931 1,200 Pelthos operating loss 8,467 4,686 13,212 10,846 Loss (gain) from short-term investments (939) 14,256 11,428 (96,516)Realized (loss) gain from short-term investments — (17) (20) 59,962 Provision for current expected credit losses on financial royalty assets (420) (1,419) (750) (4,260)Impairment of financial royalty assets(4) — 26,491 — 26,491 Decrease in investments in Primrose Bio(5) — 33,789 — 36,141 Castle Creek R&D funding — — 44,340 — Other(6) (1,293) (1,500) 154 (1,347)Income tax effect of adjusted reconciling items above (2,276) (21,785) (16,221) (12,588)Discrete tax expense related to increase in unrecognized tax benefits — 426 — 426 Excess tax benefit (shortfall) from share-based compensation(7) 41 98 (813) 563 Adjusted net income 31,965 25,833 58,563 95,498 Realized gains from sales of VKTX stock, net of tax — — — (47,857)Core adjusted net income$31,965 $25,833 $58,563 $47,641 Diluted per-share amounts attributable to common shareholders: Diluted net income (loss) per share$0.24 $(2.88) $(1.95) $1.87 Adjustments: Share-based compensation expense 0.50 0.60 0.89 1.01 Non-cash interest expense(1) 0.05 0.07 0.09 0.07 Amortization of intangible assets 0.41 0.45 0.83 0.90 Amortization of financial royalty assets(2) 0.21 0.05 0.34 0.23 Change in contingent liabilities(3) — 0.07 0.10 0.07 Pelthos operating loss 0.42 0.25 0.66 0.59 Loss (gain) from short-term investments (0.05) 0.77 0.57 (5.28)Realized gain from short-term investments — — — 3.28 Provision for current expected credit losses on financial royalty assets (0.02) (0.08) (0.04) (0.23)Impairment of financial royalty assets(4) — 1.44 — 1.45 Decrease in investments in Primrose Bio(5) — 1.83 — 1.98 Castle Creek R&D funding — — 2.22 — Other(6) (0.05) (0.06) 0.01 (0.07)Income tax effect of adjusted reconciling items above (0.11) (1.17) (0.81) (0.69)Discrete tax expense related to increase in unrecognized tax benefits — 0.02 — 0.02 Excess tax benefit (shortfall) from share-based compensation(7) — 0.01 (0.04) 0.03 Adjustment for shares excluded due to anti-dilution effect on GAAP net loss — 0.03 0.07 — Adjusted diluted net income per share 1.60 1.40 2.94 5.23 Realized gains from sales of VKTX stock, net of tax — — — (2.62)Core adjusted diluted net income per share$1.60 $1.40 $2.94 $2.61 GAAP - weighted average number of common shares - diluted 19,926 18,028 19,259 18,282 Shares excluded due to anti-dilutive effect on GAAP net loss — 413 677 — Adjusted weighted average number of common shares - diluted 19,926 18,441 19,936 18,282 (1) Amounts represent (a) non-cash interest expense in connection with the royalty and milestone payments purchase agreement assumed as part of the Novan acquisition in September 2023; and (b) non-cash debt related costs that are calculated in accordance with the authoritative accounting guidance for our revolving credit facility. (2) Amounts represent the adjustments to the effective interest income recognized to total contractual payments recognized in the period. (3) Amounts represent changes in fair value of contingent consideration related to CyDex and Metabasis transactions. (4) Amounts represent the impairment of financial royalty assets primarily related to the discontinuation of Takeda’s soticlestat program. (5) In June 2024, Primrose Bio announced a Series B preferred stock offering. Management applies the measurement alternative for its investment in the Series A preferred stock of Primrose Bio. Management concluded the Series B financing was a relevant transaction for determining an observable price change and revalued its Series A investment resulting in a downward adjustment of $25.8 million in the price of the Series A preferred stock. The unrealized loss on the Series A preferred stock was an indicator that the losses in common shares (equity method investment) are other than temporary. As a result, management recorded a $5.8 million impairment charge to its equity method investment in addition to Ligand’s share of the net loss of Primrose Bio. (6) Amounts primarily relate to gain or loss from change in fair value or derivative assets, loss on other investment, restructuring costs and other. (7) Excess tax benefit (shortfall) from share-based compensation are recorded as a discrete item within the provision for income taxes on the consolidated statements of operations as a result of the adoption of an accounting pronouncement (ASU 2016-09) on January 1, 2017. Prior to the adoption, the amount was recognized in additional paid-in capital on the consolidated statement of stockholders' equity. 1 A reconciliation of forward-looking non-GAAP adjusted earnings per diluted share to the most directly comparable GAAP measure is not available without unreasonable effort, as certain items cannot be reasonably predicted because of their high variability, complexity and low visibility. Specifically, non-cash adjustments that could be made for changes in contingent liabilities, changes in the market value of investments in public companies, share-based compensation expense and the effects of any discrete income tax items, directly impact the calculation of our adjusted earnings per diluted share.

Product Sales Excluding Veklury Increased 4% Year-Over-Year to $6.9 billion Biktarvy Sales Increased 9% Year-Over-Year to $3.5 billion FOSTER CITY, Calif.--(BUSINESS WIRE)-- Gilead Sciences, Inc. (Nasdaq: GILD) announced today its second quarter 2025 results of operations. “This was a very successful second quarter for Gilead, including the FDA approval for Yeztugo as the world’s first twice-yearly HIV prevention option,” said Daniel O’Day, Gilead’s Chairman and Chief Executive Officer. “Our strong growth this quarter was driven by Biktarvy, Descovy, Trodelvy and Livdelzi, reflecting the diversity of our portfolio. As we enter the third quarter, we are increasing revenue and earnings guidance for the year, and look forward to delivering continued innovation and growth across our core therapeutic areas.” Second Quarter 2025 Financial Results Total second quarter 2025 revenue increased 2% to $7.1 billion compared to the same period in 2024, driven by higher HIV, Livdelzi® (seladelpar) and Trodelvy® (sacituzumab govitecan-hziy) sales, partially offset by lower chronic hepatitis C virus (“HCV”) and Veklury® (remdesivir) sales. Diluted earnings per share (“EPS”) was $1.56 in the second quarter 2025 compared to $1.29 in the same period in 2024. The increase was primarily driven by net unrealized gains on securities compared to net unrealized losses in 2024 and higher product sales, partially offset by a pre-tax in-process research and development (“IPR&D”) impairment charge of $190 million related to assets acquired as part of the MYR GmbH (“MYR”) acquisition and higher research and development (“R&D”) expenses. Non-GAAP diluted EPS of $2.01 in the second quarter 2025 remained flat compared to the same period in 2024, with higher product sales offset by higher R&D expenses. As of June 30, 2025, Gilead had $7.1 billion of cash, cash equivalents and marketable debt securities compared to $10.0 billion as of December 31, 2024. During the second quarter 2025, Gilead generated $827 million in operating cash flow, net of a final $1.3 billion transition tax payment associated with the Tax Cuts and Jobs Act of 2017. During the second quarter 2025, Gilead paid dividends of $994 million and repurchased $527 million of common stock. Second Quarter 2025 Product Sales Total second quarter 2025 product sales increased 2% to $7.1 billion compared to the same period in 2024. Total second quarter 2025 product sales excluding Veklury increased 4% to $6.9 billion compared to the same period in 2024, primarily due to higher HIV, Livdelzi and Trodelvy sales, partially offset by lower HCV sales. HIV product sales increased 7% to $5.1 billion in the second quarter 2025 compared to the same period in 2024, primarily driven by increased demand and higher average realized price. Biktarvy®(bictegravir 50mg/emtricitabine (“FTC”) 200mg/tenofovir alafenamide (“TAF”) 25mg) sales increased 9% to $3.5 billion in the second quarter 2025 compared to the same period in 2024, primarily driven by higher demand. Descovy®(FTC 200mg/TAF 25mg) sales increased 35% to $653 million in the second quarter 2025 compared to the same period in 2024, primarily driven by higher average realized price and demand. The Liver Disease portfolio sales decreased 4% to $795 million in the second quarter 2025 compared to the same period in 2024. This was primarily driven by lower HCV sales, partially offset by increased demand for Livdelzi, Hepcludex® (bulevirtide) and chronic hepatitis B virus (“HBV”) products. Veklury sales decreased 44% to $121 millionin the second quarter 2025 compared to the same period in 2024, primarily driven by lower rates of COVID-19-related hospitalizations. Cell Therapy product sales decreased 7% to $485 million in the second quarter 2025 compared to the same period in 2024, reflecting ongoing competitive headwinds. Yescarta® (axicabtagene ciloleucel) sales decreased 5% to $393 million in the second quarter 2025 compared to the same period in 2024, primarily driven by lower demand, partially offset by higher average realized price. Tecartus® (brexucabtagene autoleucel) sales decreased 14% to $92 million in the second quarter 2025 compared to the same period in 2024, primarily reflecting lower demand, partially offset by higher average realized price. Trodelvy sales increased 14% to $364 million in the second quarter 2025 compared to the same period in 2024, primarily driven by higher demand and inventory dynamics. Second Quarter 2025 Product Gross Margin, Operating Expenses and Effective Tax Rate Product gross margin was 78.7% in the second quarter 2025 compared to 77.7% in the same period in 2024. Non-GAAP product gross margin was 86.9% in the second quarter 2025 compared to 86.0% in the same period in 2024. The increases were primarily driven by product mix. R&D expenses were $1.5 billion in the second quarter 2025 compared to $1.4 billion in the same period in 2024, primarily due to increased clinical manufacturing and study expenses, as well as valuation adjustments to the MYR-related contingent consideration. Non-GAAP R&D expenses were $1.5 billion in the second quarter 2025 compared to $1.3 billion in the same period in 2024, primarily due to increased clinical manufacturing and study activities. Acquired IPR&D expenses were $61 million in the second quarter 2025, primarily reflecting expenses related to the strategic partnership with Kymera Therapeutics, Inc. (“Kymera”) announced in June 2025. Selling, general and administrative (“SG&A”) expenses and non-GAAP SG&A expenses of $1.4 billion in the second quarter 2025 remained flat compared to the same period in 2024, with higher promotional expenses offset by lower corporate expenses. The effective tax rate (“ETR”) was 19.3% in the second quarter 2025 compared to 21.4% in the same period in 2024, primarily driven by lower non-taxable unrealized losses on securities, partially offset by a beneficial prior year settlement with a tax authority that did not repeat. The non-GAAP ETR was 18.8% in the second quarter 2025 compared to 17.8% in the same period in 2024, primarily reflecting the same non-recurring tax settlement in the prior year. Guidance and Outlook For the full-year, Gilead expects: August 7, 2025 Guidance Low End High End Comparison to Prior Guidance Product sales $ 28,300 $ 28,700 Previously $28,200 to $28,600 Product sales excluding Veklury $ 27,300 $ 27,700 Previously $26,800 to $27,200 Veklury $ 1,000 $ 1,000 Previously $1,400 Diluted EPS $ 5.85 $ 6.15 Previously $5.65 to $6.05 Non-GAAP diluted EPS $ 7.95 $ 8.25 Previously $7.70 to $8.10 Additional information and a reconciliation between GAAP and non-GAAP financial information for the 2025 guidance is provided in the accompanying tables. The financial guidance is subject to a number of risks and uncertainties. See the Forward-Looking Statements section below. Key Updates Since Our Last Quarterly Release Virology Received U.S. Food and Drug Administration (“FDA”) approval for Yeztugo® (lenacapavir) for pre-exposure prophylaxis (“PrEP”) to reduce the risk of sexually acquired HIV-1 in adults and adolescents weighing at least 35kg. Yeztugo is the first and only twice-yearly HIV PrEP option available in the United States. Received a positive opinion under accelerated review from the European Medicines Agency’s Committee for Medicinal Products for Human Use recommending lenacapavir for use as PrEP to reduce the risk of sexually acquired HIV-1 in adults and adolescents with increased HIV-1 acquisition risk. The recommendation will now be reviewed by the European Commission. Lenacapavir for HIV PrEP is not approved for use outside of the United States. Announced a strategic partnership agreement with the Global Fund to Fight AIDS, Tuberculosis and Malaria (“Global Fund”) to accelerate access, subject to regulatory approvals, to twice-yearly lenacapavir for HIV PrEP for up to two million people in primarily low- and lower-middle-income countries over three years, at no profit to Gilead. Presented new data at the International AIDS Society conference, including from the PURPOSE 1 and 2 trials evaluating twice-yearly lenacapavir for HIV PrEP in a broad range of populations, including pregnant and lactating women, adolescents, and young people. Announced that the World Health Organization released new guidelines recommending the use of twice-yearly lenacapavir for HIV PrEP, as well as new guidelines on HIV testing protocols for long-acting prevention medications. Announced that FDA had placed a clinical hold on the HIV treatment trials of GS-1720 and/or GS-4182, including the WONDERS-1 and WONDERS-2 trials. These drug candidates are investigational and not approved anywhere globally. Presented final data from the Phase 3 MYR301 study evaluating bulevirtide as a treatment for adults with chronic hepatitis delta virus (“HDV”) at the European Association for the Study of the Liver (“EASL”) Congress. Bulevirtide remains the only approved treatment for HDV in the EU and is not approved in the U.S. Additionally, presented clinical and real-world data on HBV and HCV programs. Oncology Announced positive topline results from the Phase 3 ASCENT-03 trial evaluating Trodelvy in patients with 1L metastatic triple-negative breast cancer (“mTNBC”) who are not candidates for PD-1/PD-L1 checkpoint inhibitors. Additionally, presented results from the Phase 3 ASCENT-04 trial evaluating Trodelvy plus Keytruda® (pembrolizumab) in 1L PD-L1+ mTNBC at the American Society of Clinical Oncology (“ASCO”) meeting. Trodelvy is not approved in either of these settings. Presented new real-world data at ASCO supporting the use of Yescarta in outpatient care settings for patients with relapsed or refractory (“R/R”) large B-cell lymphoma (“LBCL”), as well as other early-stage investigational CAR T data in glioblastoma and LBCL. Presented data in partnership with Arcellx, Inc. (“Arcellx”) at the European Hematology Association congress from the iMMagine-1 trial evaluating investigational anitocabtagene-autoleucel (“anito-cel”) in R/R multiple myeloma. Entered into an exclusive option and license agreement with Kymera to develop novel oral molecular glue CDK2 degraders with broad oncology treatment potential. Inflammation Presented new data from multiple analyses at EASL evaluating Livdelzi for the treatment of primary biliary cholangitis, including interim analysis from the open-label, long-term ASSURE study. Corporate The Board declared a quarterly dividend of $0.79 per share of common stock for the third quarter of 2025. The dividend is payable on September 29, 2025, to stockholders of record at the close of business on September 15, 2025. Future dividends will be subject to Board approval. The Board authorized a new $6.0 billion stock repurchase program, with no fixed expiration, which will commence upon the completion of the previously approved program. Reached a final settlement agreement with the U.S. Department of Justice resolving a legacy compliance matter. This settlement was accrued in 2024 and reported under SG&A expenses. Named by TIME as a 2025 Most Influential Company. Certain amounts and percentages in this press release may not sum or recalculate due to rounding. Conference Call At 1:30 p.m. Pacific Time today, Gilead will host a conference call to discuss Gilead’s results. A live webcast will be available on http://investors.gilead.com and will be archived on www.gilead.com for one year. Non-GAAP Financial Information The information presented in this document has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), unless otherwise noted as non-GAAP. Management believes non-GAAP information is useful for investors, when considered in conjunction with Gilead’s GAAP financial information, because management uses such information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of Gilead’s operating results as reported under GAAP. Non-GAAP financial information generally excludes acquisition-related expenses including amortization of acquired intangible assets and other items that are considered unusual or not representative of underlying trends of Gilead’s business, fair value adjustments of equity securities and discrete and related tax charges or benefits associated with such exclusions as well as changes in tax-related laws and guidelines, transfers of intangible assets between certain legal entities, and legal entity restructurings. Although Gilead consistently excludes the amortization of acquired intangible assets from the non-GAAP financial information, management believes that it is important for investors to understand that such intangible assets were recorded as part of acquisitions and contribute to ongoing revenue generation.Non-GAAP measures may be defined and calculated differently by other companies in the same industry. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the accompanying tables. About Gilead Sciences Gilead Sciences, Inc. is a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people. The company is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19, cancer and inflammation. Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, California. Forward-Looking Statements Statements included in this press release that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Gilead cautions readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include those relating to: Gilead’s ability to achieve its full year 2025 financial guidance, including as a result of the uncertainty of the amount and timing of Veklury revenues, the impact of the Inflation Reduction Act, changes in U.S. regulatory or legislative policies, and changes in U.S. trade policies, including tariffs; Gilead’s ability to make progress on any of its long-term ambitions or priorities laid out in its corporate strategy; Gilead’s ability to accelerate or sustain revenues for its virology, oncology and other programs; Gilead’s ability to realize the potential benefits of acquisitions, collaborations or licensing arrangements, including the acquisitions of MYR, and the arrangements with Arcellx, Kymera and the Global Fund; patent protection and estimated loss of exclusivity for our products and product candidates; Gilead’s ability to initiate, progress or complete clinical trials within currently anticipated timeframes or at all, the possibility of unfavorable results from ongoing and additional clinical trials, including those involving Livdelzi, Trodelvy, Yescarta, Yeztugo (lenacapavir), anito-cel, bulevirtide, GS-1720, and GS-4182 (such as the ASCENT-03, ASCENT-04, ASSURE, iMMagine-1, MYR301, PURPOSE 1 PURPOSE 2, WONDERS-1, and WONDERS-2 studies), and the risk that safety and efficacy data from clinical trials may not warrant further development of Gilead’s product candidates or the product candidates of Gilead’s strategic partners; Gilead’s ability to resolve the issues cited by the FDA in the clinical hold on the GS-1720 and GS-4182 trials to the satisfaction of the FDA and the risk that FDA may not remove the clinical hold, in whole or in part, in a timely manner or at all; Gilead’s ability to submit new drug applications for new product candidates or expanded indications in the currently anticipated timelines; Gilead’s ability to receive or maintain regulatory approvals in a timely manner or at all, including for additional approvals for lenacapavir for HIV PrEP, and the risk that any such approvals, if granted, may be subject to significant limitations on use and may be subject to withdrawal or other adverse actions by the applicable regulatory authority; Gilead’s ability to successfully commercialize its products; the risk of potential disruptions to the manufacturing and supply chain of Gilead’s products; pricing and reimbursement pressures from government agencies and other third parties, including required rebates and other discounts; a larger than anticipated shift in payer mix to more highly discounted payer segments; market share and price erosion caused by the introduction of generic versions of Gilead products; the risk that physicians and patients may not see advantages of Gilead’s products over other therapies and may therefore be reluctant to prescribe the products, including Yeztugo; Gilead’s ability to effectively manage the access strategy relating to lenacapavir for HIV PrEP, subject to necessary regulatory approvals; and other risks identified from time to time in Gilead’s reports filed with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, Gilead makes estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. Gilead bases its estimates on historical experience and on various other market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There may be other factors of which Gilead is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ significantly from these estimates. Further, results for the quarter ended June 30, 2025 are not necessarily indicative of operating results for any future periods. Gilead directs readers to its press releases, annual reports on Form 10-K, quarterly reports on Form 10-Q and other subsequent disclosure documents filed with the SEC. Gilead claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. The reader is cautioned that forward-looking statements are not guarantees of future performance and is cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements are based on information currently available to Gilead and Gilead assumes no obligation to update or supplement any such forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements. Additional information is available on our Investor Relations website, https://investors.gilead.com. Among other things, an estimate of Acquired IPR&D expenses is expected to be made available on the Quarterly Results page within the first ten (10) days after the end of each quarter. Gilead owns or has rights to various trademarks, copyrights and trade names used in its business, including the following: GILEAD®, GILEAD SCIENCES®, KITE™, AMBISOME®, ATRIPLA®, BIKTARVY®, CAYSTON®, COMPLERA®, DESCOVY®, DESCOVY FOR PREP®, EMTRIVA®, EPCLUSA®, EVIPLERA®, GENVOYA®, HARVONI®, HEPCLUDEX®, HEPSERA®, JYSELECA®, LIVDELZI®/LYVDELZI®, LETAIRIS®, ODEFSEY®, SOVALDI®, STRIBILD®, SUNLENCA® , TECARTUS®, TRODELVY®, TRUVADA®, TRUVADA FOR PREP®, TYBOST®, VEKLURY®, VEMLIDY®, VIREAD®, VOSEVI®, YESCARTA®, YEZTUGO® and ZYDELIG®. KEYTRUDA® is a registered trademark of Merck Sharp & Dohme LLC., a subsidiary of Merck & Co., Inc., Rahway, NJ, USA. Other trademarks and trade names are the property of their respective owners. For more information on Gilead Sciences, Inc., please visit www.gilead.com or call the Gilead Public Affairs Department at 1-800-GILEAD-5 (1-800-445-3235). GILEAD SCIENCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions, except per share amounts) 2025 2024 2025 2024 Revenues: Product sales $ 7,054 $ 6,912 $ 13,668 $ 13,559 Royalty, contract and other revenues 27 41 81 81 Total revenues 7,082 6,954 13,749 13,640 Costs and expenses: Cost of goods sold 1,501 1,544 3,041 3,096 Research and development expenses 1,491 1,351 2,870 2,871 Acquired in-process research and development expenses 61 38 315 4,169 In-process research and development impairments 190 — 190 2,430 Selling, general and administrative expenses 1,365 1,377 2,623 2,752 Total costs and expenses 4,608 4,309 9,038 15,317 Operating income (loss) 2,474 2,644 4,711 (1,678 ) Interest expense 254 237 513 491 Other (income) expense, net (208 ) 355 120 265 Income (loss) before income taxes 2,429 2,053 4,077 (2,433 ) Income tax expense 468 438 802 123 Net income (loss) 1,960 1,614 3,275 (2,556 ) Net income attributable to noncontrolling interest — — — — Net income (loss) attributable to Gilead $ 1,960 $ 1,614 $ 3,275 $ (2,556 ) Basic earnings (loss) per share attributable to Gilead $ 1.57 $ 1.29 $ 2.63 $ (2.05 ) Diluted earnings (loss) per share attributable to Gilead $ 1.56 $ 1.29 $ 2.61 $ (2.05 ) Shares used in basic earnings (loss) per share attributable to Gilead calculation 1,245 1,247 1,246 1,247 Shares used in diluted earnings (loss) per share attributable to Gilead calculation 1,255 1,251 1,257 1,247 Supplemental Information: Cash dividends declared per share $ 0.79 $ 0.77 $ 1.58 $ 1.54 Product gross margin 78.7 % 77.7 % 77.7 % 77.2 % Research and development expenses as a % of revenues 21.1 % 19.4 % 20.9 % 21.0 % Selling, general and administrative expenses as a % of revenues 19.3 % 19.8 % 19.1 % 20.2 % Operating margin 34.9 % 38.0 % 34.3 % (12.3 )% Effective tax rate 19.3 % 21.4 % 19.7 % (5.1 )% GILEAD SCIENCES, INC. TOTAL REVENUE SUMMARY (unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions, except percentages) 2025 2024 Change 2025 2024 Change Product sales: HIV $ 5,088 $ 4,745 7 % $ 9,675 $ 9,088 6 % Liver Disease 795 832 (4 )% 1,553 1,569 (1 )% Oncology 849 841 1 % 1,606 1,629 (1 )% Other 202 280 (28 )% 410 504 (19 )% Total product sales excluding Veklury 6,934 6,698 4 % 13,245 12,790 4 % Veklury 121 214 (44 )% 423 769 (45 )% Total product sales 7,054 6,912 2 % 13,668 13,559 1 % Royalty, contract and other revenues 27 41 (34 )% 81 81 1 % Total revenues $ 7,082 $ 6,954 2 % $ 13,749 $ 13,640 1 % GILEAD SCIENCES, INC. NON-GAAP FINANCIAL INFORMATION(1) (unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions, except percentages) 2025 2024 Change 2025 2024 Change Non-GAAP: Cost of goods sold $ 922 $ 965 (4 )% $ 1,883 $ 1,939 (3 )% Research and development expenses $ 1,450 $ 1,335 9 % $ 2,789 $ 2,738 2 % Acquired IPR&D expenses(2) $ 61 $ 38 61 % $ 315 $ 4,169 (92 )% Selling, general and administrative expenses $ 1,358 $ 1,351 — % $ 2,580 $ 2,646 (3 )% Other (income) expense, net $ (66 ) $ (37 ) 82 % $ (164 ) $ (141 ) 17 % Diluted earnings per share attributable to Gilead $ 2.01 $ 2.01 — % $ 3.82 $ 0.70 NM Shares used in non-GAAP diluted earnings per share attributable to Gilead calculation 1,255 1,251 — % 1,257 1,254 — % Product gross margin 86.9 % 86.0 % 89 bps 86.2 % 85.7 % 52 bps Research and development expenses as a % of revenues 20.5 % 19.2 % 128 bps 20.3 % 20.1 % 21 bps Selling, general and administrative expenses as a % of revenues 19.2 % 19.4 % -26 bps 18.8 % 19.4 % -64 bps Operating margin 46.5 % 47.0 % -49 bps 45.0 % 15.7 % NM Effective tax rate 18.8 % 17.8 % 96 bps 17.6 % 51.4 % NM ________________________________ NM - Not Meaningful (1) Refer to Non-GAAP Financial Information section above for further disclosures on non-GAAP financial measures. A reconciliation between GAAP and non-GAAP financial information is provided in the tables below. (2) Equal to GAAP financial information. GILEAD SCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions, except percentages and per share amounts) 2025 2024 2025 2024 Cost of goods sold reconciliation: GAAP cost of goods sold $ 1,501 $ 1,544 $ 3,041 $ 3,096 Acquisition-related – amortization(1) (579 ) (579 ) (1,158 ) (1,158 ) Restructuring — — — 1 Non-GAAP cost of goods sold $ 922 $ 965 $ 1,883 $ 1,939 Product gross margin reconciliation: GAAP product gross margin 78.7 % 77.7 % 77.7 % 77.2 % Acquisition-related – amortization(1) 8.2 % 8.4 % 8.5 % 8.5 % Restructuring — % — % — % — % Non-GAAP product gross margin 86.9 % 86.0 % 86.2 % 85.7 % Research and development expenses reconciliation: GAAP research and development expenses $ 1,491 $ 1,351 $ 2,870 $ 2,871 Acquisition-related – other costs(2) (35 ) (3 ) (37 ) (70 ) Restructuring (6 ) (13 ) (44 ) (63 ) Non-GAAP research and development expenses $ 1,450 $ 1,335 $ 2,789 $ 2,738 IPR&D impairment reconciliation: GAAP IPR&D impairment $ 190 $ — $ 190 $ 2,430 IPR&D impairment (190 ) — (190 ) (2,430 ) Non-GAAP IPR&D impairment $ — $ — $ — $ — Selling, general and administrative expenses reconciliation: GAAP selling, general and administrative expenses $ 1,365 $ 1,377 $ 2,623 $ 2,752 Acquisition-related – other costs(2) — (17 ) — (84 ) Restructuring (7 ) (8 ) (43 ) (22 ) Non-GAAP selling, general and administrative expenses $ 1,358 $ 1,351 $ 2,580 $ 2,646 Operating income (loss) reconciliation: GAAP operating income (loss) $ 2,474 $ 2,644 $ 4,711 $ (1,678 ) Acquisition-related – amortization(1) 579 579 1,158 1,158 Acquisition-related – other costs(2) 35 21 37 153 Restructuring 13 21 88 84 IPR&D impairment 190 — 190 2,430 Non-GAAP operating income $ 3,290 $ 3,265 $ 6,183 $ 2,148 Operating margin reconciliation: GAAP operating margin 34.9 % 38.0 % 34.3 % (12.3 )% Acquisition-related – amortization(1) 8.2 % 8.3 % 8.4 % 8.5 % Acquisition-related – other costs(2) 0.5 % 0.3 % 0.3 % 1.1 % Restructuring 0.2 % 0.3 % 0.6 % 0.6 % IPR&D impairment 2.7 % — % 1.4 % 17.8 % Non-GAAP operating margin 46.5 % 47.0 % 45.0 % 15.7 % Other (income) expense, net reconciliation: GAAP other (income) expense, net $ (208 ) $ 355 $ 120 $ 265 Gain (loss) from equity securities, net 142 (392 ) (284 ) (405 ) Non-GAAP other (income) expense, net $ (66 ) $ (37 ) $ (164 ) $ (141 ) Income (loss) before income taxes reconciliation: GAAP income (loss) before income taxes $ 2,429 $ 2,053 $ 4,077 $ (2,433 ) Acquisition-related – amortization(1) 579 579 1,158 1,158 Acquisition-related – other costs(2) 35 21 37 153 Restructuring 13 21 88 84 IPR&D impairment 190 — 190 2,430 (Gain) loss from equity securities, net (142 ) 392 284 405 Non-GAAP income before income taxes $ 3,103 $ 3,065 $ 5,834 $ 1,798 GILEAD SCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION - (Continued) (unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions, except percentages and per share amounts) 2025 2024 2025 2024 Income tax expense reconciliation: GAAP income tax expense $ 468 $ 438 $ 802 $ 123 Income tax effect of non-GAAP adjustments: Acquisition-related – amortization(1) 120 121 241 242 Acquisition-related – other costs(2) — 7 — 37 Restructuring 2 7 15 16 IPR&D impairment 51 — 51 611 (Gain) loss from equity securities, net (11 ) 33 10 (6 ) Discrete and related tax charges(3) (48 ) (60 ) (90 ) (100 ) Non-GAAP income tax expense $ 583 $ 546 $ 1,029 $ 923 Effective tax rate reconciliation: GAAP effective tax rate 19.3 % 21.4 % 19.7 % (5.1 )% Income tax effect of above non-GAAP adjustments and discrete and related tax adjustments(3) (0.5 )% (3.5 )% (2.0 )% 56.4 % Non-GAAP effective tax rate 18.8 % 17.8 % 17.6 % 51.4 % Net income (loss) attributable to Gilead reconciliation: GAAP net income (loss) attributable to Gilead $ 1,960 $ 1,614 $ 3,275 $ (2,556 ) Acquisition-related – amortization(1) 459 458 917 916 Acquisition-related – other costs(2) 35 14 37 117 Restructuring 11 14 72 68 IPR&D impairment 139 — 139 1,819 (Gain) loss from equity securities, net (131 ) 359 275 412 Discrete and related tax charges(3) 48 60 90 100 Non-GAAP net income attributable to Gilead $ 2,521 $ 2,519 $ 4,806 $ 874 Diluted earnings (loss) per share reconciliation: GAAP diluted earnings (loss) per share $ 1.56 $ 1.29 $ 2.61 $ (2.05 ) Acquisition-related – amortization(1) 0.37 0.37 0.73 0.73 Acquisition-related – other costs(2) 0.03 0.01 0.03 0.09 Restructuring 0.01 0.01 0.06 0.05 IPR&D impairment 0.11 — 0.11 1.46 (Gain) loss from equity securities, net (0.10 ) 0.29 0.22 0.33 Discrete and related tax charges(3) 0.04 0.05 0.07 0.08 Non-GAAP diluted earnings per share $ 2.01 $ 2.01 $ 3.82 $ 0.70 Non-GAAP adjustment summary: Cost of goods sold adjustments $ 579 $ 579 $ 1,158 $ 1,157 Research and development expenses adjustments 41 16 81 133 IPR&D impairment adjustments 190 — 190 2,430 Selling, general and administrative expenses adjustments 7 26 43 106 Total non-GAAP adjustments to costs and expenses 817 620 1,472 3,826 Other (income) expense, net, adjustments (142 ) 392 284 405 Total non-GAAP adjustments before income taxes 675 1,012 1,757 4,231 Income tax effect of non-GAAP adjustments above (162 ) (168 ) (316 ) (900 ) Discrete and related tax charges(3) 48 60 90 100 Total non-GAAP adjustments to net income attributable to Gilead $ 560 $ 905 $ 1,530 $ 3,431 ________________________________ (1) Relates to amortization of acquired intangibles. (2) Adjustments include integration expenses and contingent consideration fair value adjustments associated with Gilead’s recent acquisitions. (3) Represents discrete and related deferred tax charges or benefits primarily associated with acquired intangible assets and transfers of intangible assets from a foreign subsidiary to Ireland and the United States. GILEAD SCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP 2025 FULL-YEAR GUIDANCE(1) (unaudited) (in millions, except percentages and per share amounts) Provided February 11, 2025 Updated April 24, 2025 Updated August 7, 2025 Projected product gross margin GAAP to non-GAAP reconciliation: GAAP projected product gross margin 77.0% - 78.0% 77.0% - 78.0% ~ 78.0% Acquisition-related expenses ~ 8.0% ~ 8.0% ~ 8.0% Non-GAAP projected product gross margin 85.0% - 86.0% 85.0% - 86.0% ~ 86.0% Projected operating income GAAP to non-GAAP reconciliation: GAAP projected operating income $10,200 - $10,700 $10,200 - $10,700 $10,300 - $10,700 Acquisition-related, IPR&D impairment and restructuring expenses ~ 2,500 ~ 2,500 ~ 2,700 Non-GAAP projected operating income $12,700 - $13,200 $12,700 - $13,200 $13,000 - $13,400 Projected effective tax rate GAAP to non-GAAP reconciliation: GAAP projected effective tax rate ~ 20% ~ 21% ~ 21% Income tax effect of above non-GAAP adjustments and fair value adjustments of equity securities, and discrete and related tax adjustments (~ 1%) (~ 2%) (~ 2%) Non-GAAP projected effective tax rate ~ 19% ~ 19% ~ 19% Projected diluted EPS GAAP to non-GAAP reconciliation: GAAP projected diluted EPS $5.95 - $6.35 $5.65 - $6.05 $5.85 - $6.15 Acquisition-related, IPR&D impairment and restructuring expenses, fair value adjustments of equity securities and discrete and related tax adjustments ~ 1.75 ~ 2.05 ~ 2.10 Non-GAAP projected diluted EPS $7.70 - $8.10 $7.70 - $8.10 $7.95 - $8.25 ________________________________ (1) Our full-year guidance excludes the potential impact of any (i) acquisitions or business development transactions that have not been executed, (ii) future fair value adjustments of equity securities and (iii) discrete tax charges or benefits associated with changes in tax related laws and guidelines that have not been enacted, as Gilead is unable to project such amounts. The non-GAAP full-year guidance includes non-GAAP adjustments to actual current period results as well as adjustments for the known future impact associated with events that have already occurred, such as future amortization of our intangible assets and the future impact of discrete and related deferred tax charges or benefits primarily associated with acquired intangible assets and in-process research and development, transfers of intangible assets from a foreign subsidiary to Ireland and the United States, and legal entity restructurings. GILEAD SCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) June 30, December 31, (in millions) 2025 2024 Assets Cash, cash equivalents and marketable debt securities $ 7,126 $ 9,991 Accounts receivable, net 4,781 4,420 Inventories(1) 3,913 3,589 Property, plant and equipment, net 5,459 5,414 Intangible assets, net 18,566 19,948 Goodwill 8,314 8,314 Other assets 7,563 7,319 Total assets $ 55,721 $ 58,995 Liabilities and Stockholders’ Equity Current liabilities $ 11,189 $ 12,004 Long-term liabilities 24,942 27,744 Stockholders’ equity(2) 19,590 19,246 Total liabilities and stockholders’ equity $ 55,721 $ 58,995 ________________________________ (1) Includes current and long-term inventories, which are disclosed separately in the notes to our financial statements in Form 10-K and Form 10-Q. (2) As of June 30, 2025 and December 31, 2024, there were 1,242 and 1,246 shares of common stock issued and outstanding, respectively. GILEAD SCIENCES, INC. SELECTED CASH FLOW INFORMATION (unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions) 2025 2024 2025 2024 Net cash provided by operating activities $ 827 $ 1,325 $ 2,584 $ 3,544 Net cash used in investing activities (2,116 ) (307 ) (2,531 ) (2,514 ) Net cash used in financing activities (1,566 ) (2,953 ) (4,993 ) (4,314 ) Effect of exchange rate changes on cash and cash equivalents 73 (11 ) 92 (29 ) Net change in cash and cash equivalents (2,782 ) (1,947 ) (4,848 ) (3,313 ) Cash and cash equivalents at beginning of period 7,926 4,718 9,991 6,085 Cash and cash equivalents at end of period $ 5,144 $ 2,772 $ 5,144 $ 2,772 Three Months Ended Six Months Ended June 30, June 30, (in millions) 2025 2024 2025 2024 Net cash provided by operating activities $ 827 $ 1,325 $ 2,584 $ 3,544 Purchases of property, plant and equipment (107 ) (130 ) (211 ) (235 ) Free cash flow(1) $ 720 $ 1,195 $ 2,373 $ 3,309 ________________________________ (1) Free cash flow is a non-GAAP liquidity measure. Please refer to our disclosures in the Non-GAAP Financial Information section above. GILEAD SCIENCES, INC. PRODUCT SALES SUMMARY (unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions) 2025 2024 2025 2024 HIV Biktarvy – U.S. $ 2,799 $ 2,585 $ 5,272 $ 4,900 Biktarvy – Europe 429 370 804 735 Biktarvy – Rest of World 302 277 603 542 3,530 3,232 6,679 6,177 Descovy – U.S. 601 434 1,139 805 Descovy – Europe 24 25 45 51 Descovy – Rest of World 28 26 55 55 653 485 1,239 911 Genvoya – U.S. 322 372 627 704 Genvoya – Europe 40 45 79 95 Genvoya – Rest of World 16 23 35 44 377 440 741 843 Odefsey – U.S. 221 233 436 457 Odefsey – Europe 66 72 123 148 Odefsey – Rest of World 11 10 20 21 298 315 579 626 Symtuza - Revenue share(1) – U.S. 88 131 170 236 Symtuza - Revenue share(1) – Europe 33 34 62 67 Symtuza - Revenue share(1) – Rest of World 3 3 6 6 124 168 238 309 Other HIV(2) – U.S. 65 65 115 125 Other HIV(2) – Europe 33 25 63 70 Other HIV(2) – Rest of World 9 15 19 27 107 105 198 222 Total HIV – U.S. 4,096 3,821 7,760 7,226 Total HIV – Europe 624 571 1,177 1,167 Total HIV – Rest of World 368 353 738 695 5,088 4,745 9,675 9,088 Liver Disease Sofosbuvir / Velpatasvir(3) – U.S. 184 267 351 515 Sofosbuvir / Velpatasvir(3) – Europe 81 84 161 163 Sofosbuvir / Velpatasvir(3) – Rest of World 76 126 175 203 342 476 687 881 Vemlidy – U.S. 122 117 222 212 Vemlidy – Europe 13 11 24 22 Vemlidy – Rest of World 117 115 257 233 252 243 504 467 Other Liver Disease(4) – U.S. 106 47 175 89 Other Liver Disease(4) – Europe 76 47 152 94 Other Liver Disease(4) – Rest of World 19 19 35 38 201 113 362 221 Total Liver Disease – U.S. 413 431 748 816 Total Liver Disease – Europe 170 142 338 279 Total Liver Disease – Rest of World 211 259 467 474 795 832 1,553 1,569 Veklury Veklury – U.S. 51 76 250 391 Veklury – Europe 19 53 41 123 Veklury – Rest of World 50 85 132 255 121 214 423 769 GILEAD SCIENCES, INC. PRODUCT SALES SUMMARY - (Continued) (unaudited) Three Months Ended Six Months Ended June 30, June 30, (in millions) 2025 2024 2025 2024 Oncology Cell Therapy Tecartus – U.S. 41 63 82 118 Tecartus – Europe 41 37 72 73 Tecartus – Rest of World 9 7 17 16 92 107 171 207 Yescarta – U.S. 162 186 321 357 Yescarta – Europe 154 169 304 327 Yescarta – Rest of World 77 58 154 110 393 414 779 794 Total Cell Therapy – U.S. 203 250 403 475 Total Cell Therapy – Europe 196 206 376 400 Total Cell Therapy – Rest of World 86 66 171 126 485 521 949 1,001 Trodelvy Trodelvy – U.S. 224 224 405 429 Trodelvy – Europe 96 69 171 137 Trodelvy – Rest of World 44 26 81 62 364 320 657 628 Total Oncology – U.S. 427 474 808 904 Total Oncology – Europe 291 275 547 537 Total Oncology – Rest of World 131 92 252 188 849 841 1,606 1,629 Other AmBisome – U.S. 7 17 13 31 AmBisome – Europe 65 69 132 139 AmBisome – Rest of World 56 65 123 124 129 151 268 294 Other(5) – U.S. 44 98 91 156 Other(5) – Europe 8 8 16 18 Other(5) – Rest of World 21 24 35 36 73 130 143 209 Total Other – U.S. 52 115 104 188 Total Other – Europe 73 77 149 156 Total Other – Rest of World 77 88 158 160 202 280 410 504 Total product sales – U.S. 5,038 4,916 9,669 9,525 Total product sales – Europe 1,178 1,118 2,251 2,262 Total product sales – Rest of World 838 878 1,747 1,772 $ 7,054 $ 6,912 $ 13,668 $ 13,559 ________________________________ (1) Represents Gilead’s revenue from cobicistat (“C”), FTC and TAF in Symtuza (darunavir/C/FTC/TAF), a fixed dose combination product commercialized by Janssen Sciences Ireland Unlimited Company. (2) Includes Atripla, Complera/Eviplera, Emtriva, Sunlenca, Stribild, Truvada, Tybost and Yeztugo. (3) Includes Epclusa and the authorized generic version of Epclusa sold by Gilead’s separate subsidiary, Asegua Therapeutics LLC (“Asegua”). (4) Includes ledipasvir/sofosbuvir (Harvoni and the authorized generic version of Harvoni sold by Asegua), Hepcludex, Hepsera, Livdelzi/Lyvdelzi, Sovaldi, Viread and Vosevi. (5) Includes Cayston, Jyseleca, Letairis and Zydelig. Investors: Jacquie Ross, CFA investor_relations@gilead.com Media: Ashleigh Koss public_affairs@gilead.com