“We continue to expect the impact of known tariffs to be manageable in 2025.”

In context

“pproximately 3% year-over-year driven by the outperformance of Biktarvy and Descovy year-to-date, FX tailwinds and softer cell therapy expectations where we now expect a modest decline for full year 2025 versus full year 2024. I'll note that our assumptions have not changed in the following areas: firstly, our assumptions for the impact of Medicare Part D redesign remain unchanged from the beginning of the year, and we expect approximately $1.1 billion of impact to our business. Secondly, while we're very encouraged by the launch dynamics of Yeztugo to date, we are not updating our assumptions for Yeztugo revenue in the second half of 2025 at this time. And finally, we have not updated our expectations for the impact of potential tariffs or other changes to the broader policy environment. We continue to expect the impact of known tariffs to be manageable in 2025. Moving to Slide 25. We are reducing our full year 2025 expectations for Veklury by $400 million to approximately $1 billion, reflecting the current path of the COVID-19 pandemic, including lower hospitalization rates in the first half and the trends we've seen in the first month of the third quarter. As a result, total product sales is expected to be in the range of $28.3 billion to $28.7 billion with $0.5 billion increase in base business expectations, partially offset by lower COVID-19 related sales. For other items in the P&L, on a non-GAAP basis, we now expect product gross margin to be approximately 86%, reflecting strong performance year-to-date and a more favorable product mix. We expect R&D expenses to be roughly flat on a dollar basis from 2024 which is consistent with our expect”