Gilead faces risks from product competition (including generics), fluctuating demand, reimbursement pressures (rebates, discounts, and government price negotiations), potential product liability claims, manufacturing issues, supply chain disruptions, and global operational challenges (currency exchange, interest rates, political instability). Impairment charges from discontinued research and development projects are also a significant risk. Litigation and government investigations add further financial uncertainty.
Financial Upside
Gilead's revenue growth is driven by higher product sales in HIV, Oncology, and Liver Disease, particularly Biktarvy, Descovy, and Trodelvy. Favorable foreign currency exchange rates (net of hedges) and higher average realized prices also contribute to revenue growth. Successful clinical trials and regulatory approvals for new products or indications could generate substantial future revenue.
