Gilead Sciences, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance characterized by increased revenues but significant declines in profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, Gilead's total revenues reached $7,545 million, a 7% increase from $7,051 million in the same period of 2023. This growth was primarily driven by higher product sales, particularly in the HIV segment, which saw sales rise to $5,073 million, up 9% from $4,667 million. Notably, Biktarvy sales increased by 13% to $2,826 million. However, operating income fell sharply to $888 million from $2,623 million year-over-year, leading to a net income of $1,253 million, down 43% from $2,180 million in the prior year. This decline was largely attributed to a pre-tax impairment charge of $1.8 billion related to in-process research and development (IPR&D) assets.

For the nine months ended September 30, 2024, total revenues were $21,185 million, a 6% increase from $20,002 million in the same period of 2023. However, Gilead reported a net loss of $(1,303) million, a stark contrast to the net income of $4,236 million recorded in the same period of the previous year. This loss was also primarily due to a significant IPR&D impairment charge totaling $4.2 billion.

The company’s total current assets decreased to $14,779 million from $16,085 million at the end of 2023, while total assets fell to $54,525 million from $62,125 million. Stockholders’ equity also declined, with total equity at $18,390 million as of September 30, 2024, down from $22,749 million at the end of 2023.

Strategically, Gilead completed the acquisition of CymaBay Therapeutics, Inc. in March 2024 for $3.9 billion, which is expected to enhance its liver disease portfolio. The company also recorded substantial restructuring charges of $28 million for the third quarter and $112 million for the nine months, reflecting ongoing adjustments in its operations.

In terms of cash flow, Gilead generated $7.9 billion from operating activities for the nine months ended September 30, 2024, despite a decrease in cash and cash equivalents to $5.0 billion from $8.4 billion at the end of 2023. The company’s financial position remains under scrutiny as it navigates significant legal challenges and ongoing investments in research and development.