What Gilead actually does

Gilead develops antiviral and cancer medicines. It is best known for HIV treatment and prevention, led by Biktarvy, and it also sells hepatitis C and B drugs, cell therapies such as Yescarta, and the cancer drug Trodelvy.

How the business makes money

Gilead earns most of its profit from a small number of patent-protected drugs, with HIV treatments by far the biggest. That makes the business strongly profitable, but also dependent on a few products.

The dividend story

Gilead started paying a dividend in 2015 and has raised it each year since. It pays quarterly. The yield is above the market average, and the company generates a lot of cash, but a large share goes to dividends, buybacks and acquisitions.

What to keep an eye on

  • Concentration. One product family dominates the profits.
  • Patent expiry. Core HIV drugs will eventually lose protection.
  • Pricing. Government negotiation and insurer pressure.
  • Pipeline. New drugs must replace older ones.

Quick take

Gilead is a cash-rich biotech with a growing dividend, but it needs its pipeline to deliver as old drugs age.