Gilead Sciences, Inc. (GILD): BCG Matrix [Dec-2025 Updated]

You're looking at Gilead Sciences, Inc. (GILD) at a major inflection point, moving beyond its HIV stronghold into new growth areas. We see the engine room still running strong with Biktarvy pulling in $\text{3.7 billion$ in Q3 2025, but the real story is the emerging Stars like Trodelvy and the market-redefining Yeztugo, even as the Veklury revenue plummets $\text{60%$ and the core HIV business faces a $\text{900 million$ Medicare Part D headwind. This matrix lays out exactly where Gilead's cash is coming from, where the big bets are being placed, and which legacy products are fading fast-dive in to see the full picture of this pivot.

Background of Gilead Sciences, Inc. (GILD)

You're looking at Gilead Sciences, Inc. (GILD) right as they've reported their third quarter of 2025, and honestly, the story is about shifting gears. The company's total revenues for Q3 2025 hit $7.8 billion, which is a modest 3% bump up from the same time last year. Still, when you strip out the COVID-related drug Veklury, the core business is showing better traction; product sales excluding Veklury were up 4% year-over-year to $7.1 billion in the third quarter.

The HIV franchise remains the bedrock here. In Q3 2025, HIV product sales reached $5.3 billion, a 4% increase driven by demand and inventory dynamics. Take Biktarvy, for instance; its sales were $3,686 million, growing by 6.2% over the prior year, and it still commands more than 49% of the U.S. market share. Descovy is also performing well, jumping nearly 20% year-over-year to $701 million in the quarter. Management is definitely leaning on this strength, noting that they have patent protection for Biktarvy extending all the way to 2036, which is a huge relief for cash flow planning.

Now, you can see the pandemic wind-down clearly in the numbers. Veklury sales plummeted by 60% to just $277 million in Q3 2025, down from previous periods when COVID-19 hospitalizations were high. This decline is a major factor in why total product sales were actually down 2% to $7.3 billion for the quarter. On the newer side, Livdelzi is contributing, and the newest HIV prevention drug, Yeztugo, posted $39 million in sales in Q3 2025, though analysts see its peak potential ranging between $4.5 billion and $8 billion down the road.

In Oncology, Trodelvy sales were up 7% to $357 million in the third quarter, showing some positive demand momentum after a slight dip earlier in the year. The company is projecting full-year 2025 product sales between $28,400 million and $28,700 million, which shows they are confident enough to raise the lower end of their guidance from previous estimates. Financially, Gilead is sitting on a solid position as of September 30, 2025, with $9.4 billion in cash, cash equivalents, and marketable debt securities, and they generated $4.1 billion in operating cash flow just in the third quarter.

Gilead Sciences, Inc. (GILD) - BCG Matrix: Stars

You're looking at the products that are currently defining Gilead Sciences, Inc.'s future growth trajectory-the Stars. These assets operate in markets expanding quickly and hold leading positions, but they demand significant investment to maintain that edge. Honestly, this is where the capital allocation decisions get interesting.

Trodelvy (sacituzumab govitecan-hziy) in oncology is definitely one of these high-potential assets. For the third quarter of 2025, Trodelvy sales reached $357 million, representing a 7% increase compared to the same period in 2024, primarily fueled by higher demand. The company specifically pointed to positive data for Trodelvy in first-line metastatic triple-negative breast cancer (1L mTNBC) as a key driver. This positions the product strongly in a market that is seeing substantial expansion; for instance, the global Cancer Immunotherapy market is estimated to be valued at $158.42 Bn in 2025 and is projected to reach $357.07 Bn by 2032, growing at a compound annual growth rate (CAGR) of 12.3%. Here's the quick math: that's a market more than doubling in seven years, so maintaining share here is critical.

The other clear Star is Yeztugo (lenacapavir for PrEP), which is truly market-redefining for HIV prevention. Since its U.S. launch in June 2025, the product has brought in $54 million in sales, with the third quarter of 2025 alone contributing $39 million. What this estimate hides is the speed of payer adoption, which is a huge indicator of future success. Gilead reported achieving access to 75% of U.S. insurers just three months after launch, ahead of its initial six-month target. The company is guiding for full-year Yeztugo sales of around $150 million.

The competitive advantage for Yeztugo is structural. Its twice-yearly dosing schedule offers a significant convenience factor in the growing PrEP market compared to daily oral regimens. This is a major differentiator, especially when you consider the challenges of adherence in a generally healthy patient population seeking prevention.

We can summarize the key financial and market metrics supporting the Star classification for these two products below:

To keep these products firmly in the Star quadrant, Gilead Sciences, Inc. must continue to invest heavily in promotion and placement, especially for Yeztugo as it builds out its market penetration. The focus needs to be on converting that high growth rate into sustained market leadership so they mature into Cash Cows when the respective markets eventually slow down. The near-term action here is ensuring the commercial engine for Yeztugo scales efficiently to meet the high expectations set by its launch metrics.

• Trodelvy sales growth driven by demand and expanded indications.
• Yeztugo's initial sales of $39 million in Q3 2025 signal strong initial uptake.
• The oncology space is expanding rapidly, with related markets projected to grow significantly.
• Yeztugo's twice-yearly regimen is a key competitive moat in the PrEP space.

Gilead Sciences, Inc. (GILD) - BCG Matrix: Cash Cows

You're looking at the core engine of Gilead Sciences, Inc.'s profitability, the products that generate far more cash than they consume. These are your classic Cash Cows: established market leaders in mature segments.

Biktarvy remains the dominant force in HIV treatment. For the third quarter of 2025, this single product pulled in $3.7 billion in sales, cementing its position with a record 52% U.S. market share. Honestly, the stability here is key; the U.S. patent exclusivity for Biktarvy has been extended out to 2036, giving you a long runway for high-margin cash generation before significant generic erosion sets in.

Also contributing significantly to that reliable cash flow is Descovy for PrEP (pre-exposure prophylaxis). In Q3 2025, Descovy sales hit $701 million, marking a 20% year-over-year increase. It also commands a strong position, holding over 45% of the U.S. market share for prevention. These two products, Biktarvy and Descovy, form the bedrock of the HIV portfolio's high-margin contribution.

Here's a quick look at the Q3 2025 performance metrics for these cash-generating assets:

The overall HIV revenue stream is incredibly robust, but you need to factor in external pressures. Gilead Sciences, Inc. is expecting overall 2025 HIV revenue to be flat, primarily because of a significant $900 million headwind coming from the Medicare Part D redesign. That's a substantial drag, but the underlying product strength is what keeps the portfolio firmly in the Cash Cow quadrant.

For these mature, high-share products, the strategic focus shifts from aggressive growth spending to efficiency and milking the gains. You'd expect to see investment priorities align with this reality:

• Maintain the current level of productivity for market leadership.
• Keep promotion and placement investments relatively low due to low market growth.
• Invest in supporting infrastructure to drive down the cost of goods or service delivery, thereby increasing cash flow.
• These units fund the riskier Question Marks and the high-growth Stars.

Cash Cows are the products that businesses defintely strive for because they provide the necessary capital. This cash covers corporate administrative costs, services any outstanding corporate debt, and funds the research and development needed for future Stars and Question Marks.

Finance: draft the 13-week cash view incorporating the Q3 performance and the Medicare Part D impact by Friday.

Gilead Sciences, Inc. (GILD) - BCG Matrix: Dogs

You're looking at the parts of Gilead Sciences, Inc. (GILD) that aren't driving the growth story anymore, the ones that tie up capital without much return. These are the Dogs in the BCG framework: low market share in low-growth or shrinking markets. The general playbook here is to minimize exposure, because expensive turn-around efforts rarely pay off.

The most prominent example right now is Veklury (remdesivir). Its sales trajectory clearly shows a product moving out of its peak growth phase and into a mature, declining segment as the COVID-19 pandemic environment shifts. For the third quarter of 2025, Veklury sales were reported at $277 million, marking a sharp 60% drop compared to the same period in the prior year. Looking ahead, the full-year 2025 revenue forecast for Veklury is only projected to reach about $1 billion, which is a significant contraction from its peak contribution. This rapid decline places it firmly in the Dog quadrant, as the market for acute COVID-19 treatment demand wanes.

The legacy Hepatitis C Virus (HCV) portfolio represents another clear Dog category for Gilead Sciences, Inc. The very success of the curative direct-acting antiviral (DAA) drugs has created a self-limiting market. The patient pool that needs treatment is shrinking as more people are cured. While specific 2025 sales figures for the entire legacy portfolio aren't the focus here, the narrative is one of long-term erosion. This is the natural consequence of a curative therapy; once the backlog of untreated patients is addressed, the market contracts, and maintenance sales become minimal.

To give you a snapshot of the pressure points contributing to this category, consider this data:

Furthermore, you have to look at the older HIV franchise components, specifically the tenofovir disoproxil fumarate (TDF)-based products like Truvada and its generics. These face massive headwinds from both competition and evolving safety profiles. The market is actively shifting toward newer, often better-tolerated, or more convenient regimens. For instance, while Descovy (TAF-based) saw sales increase 20% to $701 million in Q3 2025, this growth highlights the migration away from the older TDF backbone drugs, which are now associated with litigation regarding potential kidney and bone issues. This dynamic means the older TDF-based assets have a low and declining market share.

The situation for these legacy assets can be summarized by the strategic reality they present:

• HCV portfolio: Shrinking patient pool due to curative nature.
• Older HIV products: Facing massive generic and newer formulation competition.
• Litigation Exposure: TDF-based drugs like Truvada are subject to significant legal settlements, such as the $40 million settlement in June 2024 resolving around 2,600 claims.
• Cash Traps: These units frequently break even or require maintenance spending without offering significant net cash generation.

Honestly, these are the areas where you want to see management actively pursuing divestiture or minimizing investment, letting the cash flow they generate (if any) simply sustain operations until they naturally phase out. Finance: draft 13-week cash view by Friday.

Gilead Sciences, Inc. (GILD) - BCG Matrix: Question Marks

You're looking at the products that are burning cash now but hold the promise of future dominance-the classic Question Marks in the Boston Consulting Group Matrix. These are areas where Gilead Sciences, Inc. is pouring resources into growing markets where its current share isn't yet established.

The Cell Therapy franchise, encompassing Yescarta and Tecartus, is a prime example of this dynamic. For the third quarter of 2025, this franchise generated sales of $432 million. This represented an 11% decrease compared to the third quarter of 2024, reflecting ongoing competitive headwinds in the market. Management anticipates this pressure will continue, forecasting that full-year 2025 sales for Yescarta and Tecartus will decline by approximately 10% versus the full year of 2024. This segment requires heavy investment to defend its position against newer modalities, like bispecific antibodies, in a market projected to grow to $5.85 billion in 2025, with a compound annual growth rate of 22.2% through 2030. Gilead Sciences' Yescarta held a 32.5% market share in 2024, so defending that share is critical.

On the flip side, you have newer launches showing rapid adoption in niche areas, demanding investment to scale. Livdelzi, for primary biliary cholangitis (PBC), is showing strong momentum. It hit over $100 million in quarterly revenue for the first time in Q3 2025, representing a 35% sequential growth quarter-over-quarter. The overall Liver Disease portfolio, largely driven by Livdelzi, saw sales increase 12% year-over-year in the third quarter.

The long-acting HIV treatment pipeline, centered on lenacapavir, represents a high-reward Question Mark. While the immediate focus is on the prevention product, Yeztugo (lenacapavir), which achieved $39 million in Q3 2025 sales and $54 million since its June 2025 U.S. launch, the real potential lies in the treatment combinations. Gilead Sciences is evaluating lenacapavir in combinations for dosing frequencies of weekly, monthly, quarterly, and twice-yearly. This pipeline is designed to support up to 7 HIV treatment launches by the end of 2033, aiming to secure leadership well past the projected U.S. loss of exclusivity for Biktarvy in April 2036.

Handling these Question Marks requires clear capital allocation decisions. Here's a quick view of the growth assets needing immediate strategic focus:

• The Cell Therapy franchise requires significant R&D investment to defend market share against emerging bispecific antibodies.
• Livdelzi needs investment to expand beyond its current niche, aiming for broader adoption in PBC.
• The lenacapavir-based HIV treatment combinations are Phase 3 assets representing a high-risk, high-reward bet for future revenue streams.
• Yeztugo, the twice-yearly injectable for HIV prevention, achieved 75% payer coverage ahead of schedule, signaling a strong foundation for future ramp-up in 2026.

The core challenge here is deciding which of these cash consumers to fuel heavily to turn them into Stars, and which to divest if the path to market share is too costly or slow. Finance: draft the capital allocation impact analysis for the 2026 budget by next Wednesday.