In March 2024, Gilead completed the acquisition of CymaBay Therapeutics, Inc. for $3.9 billion, net of cash acquired. This resulted in a $3.9 billion charge representing an acquired IPR&D asset with no alternative future use, impacting Q1 2024 results.

In January 2025, Gilead entered into a strategic partnership with LEO Pharma A/S to develop and commercialize LEO Pharma's small molecule oral STAT6 programs for inflammatory diseases. Gilead made a $250 million upfront payment to LEO Pharma which was charged to Acquired in-process research and development expenses.

In January 2025, Gilead amended its agreement with Galapagos following Galapagos' planned separation into two entities. Gilead's ownership stake in Galapagos is subject to lock-up until December 2025, and upon separation, Gilead will hold approximately 25% of the outstanding shares in both Galapagos and SpinCo.

During the three months ended March 31, 2025 and 2024, Gilead incurred restructuring charges of $74 million and $63 million, respectively, primarily related to reductions in the workforce. We recorded $38 million and $50 million of these charges in Research and development expenses and $36 million and $13 million of these charges in Selling, general and administrative expenses.

In 2017, Gilead received a subpoena from the U.S. Attorney's Office for the Southern District of New York requesting documents related to our promotional speaker programs for HIV. In April 2025, we entered into a settlement agreement to resolve the government's investigation.

On April 24, 2025, the Board of Directors declared a quarterly dividend of $0.79 per share of common stock. During the three months ended March 31, 2025, $730 million was used for common stock repurchases.

The company acknowledges that existing products are subject to pricing and reimbursement pressures from government agencies and other third parties, including required discounts and rebates.

The company states that the testing, manufacturing, marketing and use of our commercial products, as well as product candidates in development, involve substantial risk of product liability claims.

The company recognizes that information system service interruptions or breaches, including significant cybersecurity incidents, could give rise to legal liability and regulatory action under data protection and privacy laws and adversely affect our business and operations.

The company acknowledges it faces significant competition from global pharmaceutical and biotechnology companies, specialized pharmaceutical firms and generic drug manufacturers.

The company states that if they are unable to launch commercially successful new products or new indications for existing products, including approval for earlier lines of therapy, our business will be adversely impacted.

HIV product sales increased 6% to $4.6 billion for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to higher demand and higher average realized price, inclusive of the impact of the redesign of the U.S. Medicare Part D program.

Selling, general and administrative expenses decreased 8% to $1.3 billion for the three months ended March 31, 2025, compared to the same period in 2024. General and administrative expenses decreased mainly due to lower legal and other corporate expenses.

The company depends on CMOs and corporate partners to perform manufacturing activities effectively and on a timely basis for the majority of our active pharmaceutical ingredients and drug products. These third parties are independent entities subject to their own unique operational and financial risks that are out of our control.

Product gross margin remained relatively flat for the three months ended March 31, 2025, compared to the same period in 2024.

Acquired in-process research and development expenses were $253 million for the three months ended March 31, 2025, primarily related to the LEO Pharma A/S collaboration in January 2025.

The company regularly reviews its R&D activities based on unmet medical need and, as necessary, reallocates resources among our internal R&D portfolio and external opportunities that we believe will best support the long-term growth of our business.

Advancing a novel and personalized therapy such as Yescarta or Tecartus, which are chimeric antigen receptor ("CAR”) T-cell therapies, creates significant challenges, including educating and certifying medical personnel regarding the procedures and the potential side effects.

The company's capital priorities include: (i) investing in our business and R&D pipeline, (ii) continuing select partnerships and business development transactions, (iii) growing our dividend over time, and (iv) repurchasing shares to offset dilution and opportunistically reduce share count.

Net cash used in financing activities for the three months ended March 31, 2025 was primarily the result of $1.76 billion for debt repayments, $1.0 billion for dividend payments and $730 million for common stock repurchases.

The company repurchased $730 million worth of common stock during the quarter, primarily to offset dilution.

Some institutional and individual investors continue to use environmental, social and governance (“ESG”) screening criteria to determine whether Gilead qualifies for inclusion in their investment portfolios.

The company's aspirations, goals and disclosures related to corporate responsibility matters expose the company to numerous risks, including risks to our reputation and stock price.

The company states that climate change and related natural disasters, as well as legal, regulatory, or market measures to address climate change, can negatively affect our business and operations.

The company states that government price reporting and payment regulations are complex, and we are continually assessing the methods by which we calculate and report pricing in accordance with these obligations.

The company states that the healthcare industry is subject to various federal, state and international laws and regulations pertaining to drug approval, manufacturing, reimbursement, rebates, price reporting, healthcare fraud and abuse, and data privacy and security.

The company states that the non-retail sector in the U.S., which includes government institutions, tends to be less consistent in terms of buying patterns and often causes quarter-over-quarter fluctuations that do not mirror actual patient demand for our products.