GILD

Gilead Sciences, Inc.

Health Care · Biotechnology / Pharmaceuticals
2
/5
Low
BOTTOM LINE

Gilead makes physical drugs for biological diseases that AGI cannot cure through software — low disruption risk with potential AGI upside in accelerated drug discovery.

BUSINESS OVERVIEW

Gilead Sciences is a biopharmaceutical company focused on developing and commercializing innovative medicines in areas of unmet medical need, primarily HIV/AIDS, liver diseases (hepatitis B and C), oncology/hematology, and inflammation. The company is the global leader in HIV treatment and prevention, with its antiretroviral therapies used by millions of patients worldwide. Gilead also developed the blockbuster hepatitis C cures (Sovaldi/Harvoni) and Veklury (remdesivir) for COVID-19. Through its acquisition of Kite Pharma, Gilead is a leader in CAR-T cell therapy for cancer.

REVENUE SOURCES
Biktarvy (HIV treatment - largest product by revenue)Descovy and Truvada (HIV treatment and PrEP)Lenacapavir (Sunlenca - long-acting HIV treatment/prevention)Veklury (remdesivir - antiviral for COVID-19)Yescarta and Tecartus (CAR-T cell therapies for blood cancers via Kite)Trodelvy (antibody-drug conjugate for cancer)Hepatitis B treatments (Vemlidy)Hepatitis C treatments (Epclusa, Harvoni)
PRIMARY CUSTOMERS

Healthcare providers (hospitals, clinics, infectious disease specialists, oncologists), wholesalers and specialty pharmacy distributors, government health agencies (Ryan White program, VA, international programs like PEPFAR), and patients. Gilead sells through major pharmaceutical distributors including McKesson, AmerisourceBergen, and Cardinal Health in the US.

AGI EXPOSURE ANALYSIS

AGI cannot replace pharmaceutical drugs. Gilead's products — HIV antivirals (Biktarvy, Descovy), hepatitis C cures (Sovaldi, Harvoni), oncology cell therapies (Yescarta, Tecartus), and pulmonary drugs — are physical molecules and biological therapies that must be manufactured, distributed, and administered to patients. AGI could accelerate drug discovery (potentially for competitors), but the drugs themselves are physical products protected by patents and regulatory exclusivity. Gilead's customers are patients, hospitals, and healthcare systems. People with HIV, cancer, and liver disease will continue to need treatment regardless of AGI. Disease does not care about technological disruption.

RISK FACTORS
  • AGI could accelerate competitor drug discovery, reducing Gilead's competitive advantages in R&D speed
  • AGI might enable new treatment modalities (gene therapy, personalized medicine) that could displace Gilead's current drug portfolio
  • AGI-driven drug discovery could commoditize pharmaceutical R&D, eroding the premium for innovative drugs
  • If AGI makes clinical trials dramatically cheaper, more competitors could enter the market
RESILIENCE FACTORS
  • Existing drug portfolio is patent-protected and cannot be replicated by AGI
  • FDA regulatory process for drug approval remains a massive barrier regardless of AGI
  • HIV treatment is a chronic, lifelong therapy with a large and growing patient population
  • Oncology cell therapies require biological manufacturing that cannot be digitized
  • Gilead can use AGI to enhance its own R&D, maintaining competitive position
  • Brand trust and physician relationships in HIV care are deeply entrenched