- Product Sales of $6.4 billion -
- Diluted EPS of $2.06 per share -
- Non-GAAP Diluted EPS of $2.27 per share
-
- Revised Full Year 2017 Guidance -
Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results
of operations for the third quarter ended September 30, 2017. The
financial results that follow represent a year-over-year comparison
of the third quarter 2017 to the third quarter 2016. Total revenues
were $6.5 billion in 2017 compared to $7.5 billion in 2016. Net
income was $2.7 billion or $2.06 per diluted share in 2017 compared
to $3.3 billion or $2.49 per diluted share in 2016. Non-GAAP net
income, which excludes amounts related to acquisition-related,
up-front collaboration, stock-based compensation and other
expenses, was $3.0 billion or $2.27 per diluted share in 2017
compared to $3.7 billion or $2.75 per diluted share in 2016.
Three Months Ended Nine Months Ended
September 30, September 30, (In millions, except
per share amounts) 2017 2016 2017
2016 Product sales $ 6,402 $ 7,405 $ 19,825 $ 22,737
Royalty, contract and other revenues 110 95 333
333 Total revenues $ 6,512 $ 7,500 $ 20,158
$ 23,070 Net income attributable to Gilead $ 2,718 $
3,330 $ 8,493 $ 10,393 Non-GAAP net income* $ 2,990 $ 3,677 $ 9,311
$ 12,128 Diluted earnings per share $ 2.06 $ 2.49 $ 6.44 $
7.59
Non-GAAP diluted earnings per share*
$ 2.27 $ 2.75 $ 7.06 $ 8.87
* Non-GAAP net income and non-GAAP diluted earnings per share
exclude acquisition-related, up-front collaboration, stock-based
compensation and other expenses. A reconciliation between GAAP and
non-GAAP financial information is provided in the tables on pages 7
and 8.
Product Sales
Total product sales for the third quarter of 2017 were $6.4
billion compared to $7.4 billion for the same period in 2016.
Product sales for the third quarter of 2017 were $4.5 billion in
the United States, $1.2 billion in Europe and $663 million in other
locations. Product sales for the third quarter of 2016 were $5.1
billion in the United States, $1.4 billion in Europe and $931
million in other locations.
Antiviral Product Sales
Antiviral product sales, which include sales of our HIV, chronic
hepatitis B (HBV) and chronic hepatitis C (HCV) products, were $5.8
billion for the third quarter of 2017 compared to $6.8 billion for
the same period in 2016.
- HIV and HBV product sales were $3.6
billion compared to $3.5 billion for the same period in 2016. The
increase was primarily due to the continued uptake of our tenofovir
alafenamide (TAF) based products, Genvoya® (elvitegravir 150
mg/cobicistat 150 mg/emtricitabine 200 mg/tenofovir alafenamide 10
mg), Descovy® (emtricitabine 200 mg/tenofovir alafenamide 25 mg)
and Odefsey® (emtricitabine 200 mg/rilpivirine 25 mg/tenofovir
alafenamide 25 mg).
- HCV product sales, which consist of
Harvoni® (ledipasvir 90 mg/sofosbuvir 400 mg), Sovaldi® (sofosbuvir
400 mg), Epclusa® (sofosbuvir 400 mg/velpatasvir 100 mg) and
Vosevi® (sofosbuvir 400 mg/velpatasvir 100 mg/voxilaprevir 100 mg),
were $2.2 billion compared to $3.3 billion for the same period in
2016. The decline was due to lower sales of Harvoni and Sovaldi
across all major markets, partially offset by sales of Epclusa,
which was approved in the United States and Europe in June and July
2016, respectively, and sales of Vosevi, which was approved in the
United States and Europe in July 2017.
Other Product Sales
Other product sales, which include Letairis® (ambrisentan),
Ranexa® (ranolazine) and AmBisome® (amphotericin B liposome for
injection), were $559 million for the third quarter of 2017
compared to $564 million for the same period in 2016.
Operating Expenses
Three Months Ended Nine Months Ended
September 30, September 30, (In millions)
2017 2016 2017 2016
Research and development expenses (R&D) $ 789 $ 1,141 $ 2,584 $
3,890 Non-GAAP R&D expenses* $ 745 $ 981 $ 2,446 $ 2,790
Selling, general and administrative expenses (SG&A) $ 879 $ 831
$ 2,626 $ 2,406 Non-GAAP SG&A expenses* $ 806 $ 780 $ 2,440 $
2,256
* Non-GAAP R&D and SG&A expenses exclude
acquisition-related, up-front collaboration, stock-based
compensation and other expenses. A reconciliation between GAAP and
non-GAAP financial information is provided in the tables on pages 7
and 8.
During the third quarter of 2017, compared to the same period in
2016:
- R&D expenses decreased primarily
due to the 2016 impacts of a $200 million milestone expense
associated with Nimbus Apollo, Inc. (Nimbus) and a $117 million
impairment charge related to in-process R&D.
- Non-GAAP R&D expenses* decreased
primarily due to the 2016 impact of a $200 million milestone
expense associated with Nimbus.
Cash, Cash Equivalents and Marketable
Securities
As of September 30, 2017, Gilead had $41.4 billion of cash, cash
equivalents and marketable securities compared to $36.6 billion as
of June 30, 2017. This increase was primarily due to the issuance
of $3.0 billion aggregate principal amount of senior unsecured
notes in September 2017 to partially fund the purchase of Kite
Pharma, Inc. (Kite). The acquisition was completed in October 2017.
Cash flow from operating activities was $2.7 billion for the
quarter. During the third quarter of 2017, Gilead paid cash
dividends of $682 million and utilized $153 million on stock
repurchases.
Revised Full Year 2017
Guidance
Gilead revises its full year 2017 guidance, initially provided
on February 7, 2017 and revised on July 26, 2017:
(In millions, except percentages and per share amounts)
Initially Provided
February 7, 2017
Reiterated
May 2, 2017
Updated
July 26, 2017
UpdatedOctober 26, 2017 Net Product
Sales $22,500 - $24,500 $24,000 - $25,500 $24,500 - $25,500 Non-HCV
Product Sales $15,000 - $15,500 $15,500 - $16,000 $16,000 - $16,500
HCV Product Sales $7,500 - $9,000 $8,500 - $9,500 $8,500 - $9,000
Non-GAAP* Product Gross Margin 86% - 88% 86% - 88% 86% - 87%
R&D Expenses $3,100 - $3,400 $3,200 - $3,400 $3,300 - $3,400
SG&A Expenses $3,100 - $3,400 $3,200 - $3,400 $3,300 - $3,400
Effective Tax Rate 25.0% - 28.0% 25.0% - 28.0% 25.0% - 27.0%
Diluted EPS Impact of Acquisition-related, Up-front Collaboration,
Stock-based Compensation and Other Expenses $0.84 - $0.91 $0.86 -
$0.93 $1.02 - $1.17
* Non-GAAP Product Gross Margin, R&D and SG&A expenses
and effective tax rate exclude acquisition-related, up-front
collaboration, stock-based compensation and other expenses. A
reconciliation between GAAP and non-GAAP full year 2017 guidance is
provided in the tables on page 9.
Corporate Highlights
- In August, Gilead and Kite announced
that the companies had signed a definitive agreement under which
Gilead would acquire all of Kite’s outstanding shares of common
stock for $180 per share in cash. The acquisition was completed in
early October 2017 for approximately $11.2 billion, excluding $0.7
billion relating to the portion of stock-based compensation
attributable to the post combination period.
Product and Pipeline Updates announced
by Gilead during the Third Quarter of 2017 include:
Antiviral and Liver Diseases Programs
- Announced that the China Food and Drug
Administration has approved Sovaldi for the treatment of HCV
infection. Sovaldi was approved for the treatment of adults and
adolescents (aged 12 to 18 years) infected with HCV genotype 1, 2,
3, 4, 5 or 6 as a component of a combination antiviral treatment
regimen. Sovaldi is the first Gilead HCV medicine approved in
China.
- Announced that the U.S. Food and Drug
Administration (FDA) has granted priority review for Gilead’s new
drug application (NDA) for an investigational, fixed-dose
combination of bictegravir (50 mg) (BIC), an integrase strand
transfer inhibitor, and emtricitabine/tenofovir alafenamide (200/25
mg) (FTC/TAF), a dual-NRTI backbone, for the treatment of HIV-1
infection. Gilead filed the NDA for BIC/FTC/TAF with a priority
review voucher on June 12, 2017, and FDA has set a target action
date under the Prescription Drug User Fee Act of February 12,
2018.
- Announced that FDA has approved
expanded labeling for Epclusa, the first all-oral, pan-genotypic,
once-daily single-tablet regimen for the treatment of adults with
HCV infection, to include use in patients co-infected with
HIV.
- Announced that the European Commission
and FDA approved Vosevi, a once-daily single-tablet regimen for the
treatment of HCV infection in adults with genotypes 1-6. Vosevi is
the first and only single-tablet regimen for patients who have
previously failed therapy with direct-acting antiviral (DAA)
treatments and is the latest regimen in Gilead’s portfolio of
sofosbuvir-based HCV DAA treatments.
- Announced detailed 48-week results from
two Phase 3 studies evaluating the efficacy and safety of
BIC/FTC/TAF for the treatment of HIV-1 infection in treatment-naïve
adults. In the ongoing studies, BIC/FTC/TAF was found to be
statistically non-inferior to regimens containing dolutegravir (50
mg). The data was presented in two late-breaker sessions at the 9th
International AIDS Conference in Paris. In addition, our marketing
authorization application for BIC/FTC/TAF has been fully validated
and is now under evaluation by the European Medicines Agency.
Non-GAAP Financial
Information
The information presented in this document has been prepared by
Gilead in accordance with U.S. generally accepted accounting
principles (GAAP), unless otherwise noted as non-GAAP. Management
believes non-GAAP information is useful for investors, when
considered in conjunction with Gilead’s GAAP financial information,
because management uses such information internally for its
operating, budgeting and financial planning purposes. Non-GAAP
information is not prepared under a comprehensive set of accounting
rules and should only be used to supplement an understanding of
Gilead’s operating results as reported under GAAP. Non-GAAP
measures may be defined and calculated differently by other
companies in the same industry. A reconciliation between GAAP and
non-GAAP financial information is provided in the tables on pages
7, 8 and 9.
Conference Call
At 4:30 p.m. Eastern Time today, Gilead’s management will host a
conference call and a simultaneous webcast to discuss results from
its third quarter 2017 and a general business update. To access the
webcast live via the internet, please connect to the company’s
website at www.gilead.com/investors 15
minutes prior to the conference call to ensure adequate time for
any software download that may be needed to hear the webcast.
Alternatively, please call 1-877-359-9508 (U.S.) or 1-224-357-2393
(international) and dial the conference ID 89229005 to access the
call.
A replay of the webcast will be archived on the company’s
website for one year, and a phone replay will be available
approximately two hours following the call through October 28,
2017. To access the phone replay, please call 1-855-859-2056 (U.S.)
or 1-404-537-3406 (international) and dial the conference ID
89229005.
About Gilead
Gilead Sciences is a biopharmaceutical company that discovers,
develops and commercializes innovative therapeutics in areas of
unmet medical need. The company’s mission is to advance the care of
patients suffering from life-threatening diseases. Gilead has
operations in more than 30 countries worldwide, with headquarters
in Foster City, California.
Forward-looking
Statements
Statements included in this press release that are not
historical in nature are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Gilead cautions readers that forward-looking statements are subject
to certain risks and uncertainties that could cause actual results
to differ materially. These risks and uncertainties include:
Gilead’s ability to achieve its anticipated full year 2017
financial results; Gilead’s ability to sustain growth in revenues
for its antiviral and other programs; the risk that estimates of
patients with HCV or anticipated patient demand may not be
accurate; the risk that private and public payers may be reluctant
to provide, or continue to provide, coverage or reimbursement for
new products, including YescartaTM, Vosevi, Vemlidy, Epclusa,
Descovy, Odefsey and Genvoya; Gilead’s ability to successfully
commercialize Yescarta and advance Kite’s product pipeline and any
difficulties or unanticipated expenses in connection with
integrating the companies; the potential for increased pricing
pressure globally and contracting pressure as well as decreased
volume and market share from additional competitive HCV launches; a
larger than anticipated shift in payer mix to more highly
discounted payer segments and geographic regions and decreases in
treatment duration; availability of funding for state AIDS Drug
Assistance Programs (ADAPs) and Veterans Administration (VA);
continued fluctuations in ADAP and VA purchases driven by federal
and state grant cycles which may not mirror patient demand and may
cause fluctuations in Gilead’s earnings; market share and price
erosion caused by the introduction of generic versions of Viread
and Truvada outside the United States; potential amendments to the
Affordable Care Act or other government action that could have the
effect of lowering prices or reducing the number of insured
patients; the possibility of unfavorable results from clinical
trials involving investigational compounds; the levels of inventory
held by wholesalers and retailers which may cause fluctuations in
Gilead’s earnings; Gilead’s ability to submit new drug applications
and receive regulatory approval for new product candidates in the
timelines currently anticipated or at all, including for
BIC/FTC/TAF; Gilead’s ability to successfully develop its oncology,
inflammation, cardiovascular and respiratory programs; safety and
efficacy data from clinical studies may not warrant further
development of Gilead’s product candidates; Gilead’s ability to pay
dividends or complete its share repurchase program due to changes
in its stock price, corporate or other market conditions;
fluctuations in the foreign exchange rate of the U.S. dollar that
may cause an unfavorable foreign currency exchange impact on
Gilead’s future revenues and pre-tax earnings; and other risks
identified from time to time in Gilead’s reports filed with the
U.S. Securities and Exchange Commission (SEC). In addition, Gilead
makes estimates and judgments that affect the reported amounts of
assets, liabilities, revenues and expenses and related disclosures.
Actual results may differ significantly from these estimates. You
are urged to consider statements that include the words may, will,
would, could, should, might, believes, estimates, projects,
potential, expects, plans, anticipates, intends, continues,
forecast, designed, goal, or the negative of those words or other
comparable words to be uncertain and forward-looking. Gilead
directs readers to its press releases, Quarterly Report on Form
10-Q for the quarter ended June 30, 2017 and other subsequent
disclosure documents filed with the SEC. Gilead claims the
protection of the Safe Harbor contained in the Private Securities
Litigation Reform Act of 1995 for forward-looking statements.
All forward-looking statements are based on information
currently available to Gilead, and Gilead assumes no obligation to
update any such forward-looking statements.
Gilead owns or has rights to various
trademarks, copyrights and trade names used in our business,
including the following: GILEAD®, GILEAD SCIENCES®, AMBISOME®,
CAYSTON®, COMPLERA®, DESCOVY®, EMTRIVA®, EPCLUSA®, EVIPLERA®,
GENVOYA®, HARVONI®, HEPSERA®, LETAIRIS®, ODEFSEY®, RANEXA®,
SOVALDI®, STRIBILD®, TRUVADA®, TYBOST®, VEMLIDY®, VIREAD®,
VITEKTA®, VOLIBRIS®, VOSEVI®, YESCARTATM and ZYDELIG®.
ATRIPLA® is a registered trademark of Bristol-Myers
Squibb & Gilead Sciences, LLC. LEXISCAN® is a registered
trademark of Astellas U.S. LLC. MACUGEN® is a registered trademark
of Eyetech, Inc. SUSTIVA® is a registered trademark of
Bristol-Myers Squibb Pharma Company. TAMIFLU® is a registered
trademark of Hoffmann-La Roche Inc.
For more information on Gilead Sciences, Inc.,
please visit www.gilead.com or call the Gilead Public Affairs
Department at 1-800-GILEAD-5 (1-800-445-3235).
GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(unaudited)
(in millions, except per share
amounts)
Three Months Ended Nine Months Ended
September 30, September 30, 2017
2016 2017 2016 Revenues: Product sales
$ 6,402 $ 7,405 $ 19,825 $ 22,737 Royalty, contract and other
revenues 110 95 333 333 Total revenues
6,512 7,500 20,158 23,070 Costs and
expenses: Cost of goods sold 1,032 1,129 3,115 3,186 Research and
development expenses 789 1,141 2,584 3,890 Selling, general and
administrative expenses 879 831 2,626 2,406
Total costs and expenses 2,700 3,101 8,325
9,482 Income from operations 3,812 4,399 11,833
13,588 Interest expense (291 ) (242 ) (821 ) (699 ) Other income
(expense), net 150 119 391 288 Income
before provision for income taxes 3,671 4,276 11,403 13,177
Provision for income taxes 959 951 2,923 2,788
Net income 2,712 3,325 8,480 10,389 Net loss attributable to
noncontrolling interest (6 ) (5 ) (13 ) (4 ) Net income
attributable to Gilead $ 2,718 $ 3,330 $ 8,493
$ 10,393 Net income per share attributable to Gilead
common stockholders - basic $ 2.08 $ 2.52 $ 6.50 $ 7.72 Shares used
in per share calculation - basic 1,306 1,322 1,307 1,347 Net income
per share attributable to Gilead common stockholders - diluted $
2.06 $ 2.49 $ 6.44 $ 7.59 Shares used in per share calculation -
diluted 1,319 1,339 1,319 1,369 Cash dividends declared per share $
0.52 $ 0.47 $ 1.56 $ 1.37
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL INFORMATION
(unaudited)
(in millions, except percentages and
per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30, 2017
2016 2017 2016 Cost of goods sold
reconciliation: GAAP cost of goods sold $ 1,032 $ 1,129 $ 3,115
$ 3,186 Acquisition-related- amortization of purchased intangibles
(209 ) (210 ) (629 ) (630 ) Stock-based compensation expenses (4 )
(4 ) (12 ) (11 ) Other(1) 2 3 (18 ) 9 Non-GAAP
cost of goods sold $ 821 $ 918 $ 2,456 $ 2,554
Product gross margin reconciliation: GAAP
product gross margin 83.9
%
84.8
%
84.3
%
86.0
%
Acquisition-related- amortization of purchased intangibles 3.3
%
2.8
%
3.2
%
2.8
%
Other(1) —
%
—
%
0.1
%
—
%
Non-GAAP product gross margin(2) 87.2
%
87.6
%
87.6
%
88.8
%
Research and development expenses reconciliation:
GAAP research and development expenses $ 789 $ 1,141 $ 2,584 $
3,890 Up-front collaboration expenses — (5 ) — (373 )
Acquisition-related expenses- acquired IPR&D — — — (400 )
Acquisition-related- IPR&D impairment — (117 ) — (231 )
Stock-based compensation expenses (53 ) (44 ) (142 ) (129 )
Other(1) 9 6 4 33 Non-GAAP research and
development expenses $ 745 $ 981 $ 2,446 $
2,790
Selling, general and administrative expenses
reconciliation: GAAP selling, general and administrative
expenses $ 879 $ 831 $ 2,626 $ 2,406 Acquisition-related-
transaction costs (12 ) — (12 ) — Stock-based compensation expenses
(56 ) (47 ) (150 ) (138 ) Other(1) (5 ) (4 ) (24 ) (12 ) Non-GAAP
selling, general and administrative expenses $ 806 $ 780
$ 2,440 $ 2,256
Operating margin
reconciliation: GAAP operating margin 58.5
%
58.7
%
58.7
%
58.9
%
Up-front collaboration expenses —
%
0.1
%
—
%
1.6
%
Acquisition-related- amortization of purchased intangibles 3.2
%
2.8
%
3.1
%
2.7
%
Acquisition-related expenses- acquired IPR&D —
%
—
%
—
%
1.7
%
Acquisition-related- IPR&D impairment —
%
1.6
%
—
%
1.0
%
Acquisition-related- transaction costs 0.2
%
—
%
0.1
%
—
%
Stock-based compensation expenses 1.7
%
1.3
%
1.5
%
1.2
%
Other(1) (0.1 )% (0.1 )% 0.2
%
(0.1 )% Non-GAAP operating margin(2) 63.6
%
64.3
%
63.6
%
67.1
%
Interest expense reconciliation: GAAP interest
expense $ (291 ) $ (242 ) $ (821 ) $ (699 ) Acquisition-related-
transaction costs 18 — 18 — Non-GAAP
interest expense $ (273 ) $ (242 ) $ (803 ) $ (699 ) Notes:
(1) Amounts related to restructuring, contingent consideration,
consolidation of a contract manufacturer and/or other individually
insignificant amounts (2) Amounts may not sum due to rounding
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL INFORMATION - (Continued)
(unaudited)
(in millions, except percentages and
per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30, 2017
2016 2017 2016 Effective tax rate
reconciliation: GAAP effective tax rate 26.1
%
22.2
%
25.6
%
21.2
%
Up-front collaboration expenses —
%
—
%
—
%
(0.5 )% Acquisition-related- amortization of purchased intangibles
(1.2 )% (0.4 )% (1.2 )% (0.7 )% Acquisition-related expenses-
acquired IPR&D —
%
—
%
—
%
(0.5 )% Stock-based compensation expenses(1) 0.8
%
—
%
0.6
%
—
%
Non-GAAP effective tax rate(2) 25.7
%
21.8
%
25.0
%
19.5
%
Net income attributable to Gilead reconciliation:
GAAP net income attributable to Gilead $ 2,718 $ 3,330 $ 8,493 $
10,393 Up-front collaboration expenses — 5 — 373
Acquisition-related- amortization of purchased intangibles 201 204
605 612 Acquisition-related expenses- acquired IPR&D — — — 400
Acquisition-related- IPR&D impairment — 74 — 173
Acquisition-related- transaction costs 24 — 24 — Stock-based
compensation expenses(1) 55 70 161 203 Other(3) (8 ) (6 ) 28
(26 ) Non-GAAP net income attributable to Gilead $ 2,990 $
3,677 $ 9,311 $ 12,128
Diluted
earnings per share reconciliation: GAAP diluted earnings per
share $ 2.06 $ 2.49 $ 6.44 $ 7.59 Up-front collaboration expenses —
— — 0.27 Acquisition-related- amortization of purchased intangibles
0.15 0.15 0.46 0.45 Acquisition-related expenses- acquired
IPR&D — — — 0.29 Acquisition-related- IPR&D impairment —
0.06 — 0.13 Acquisition-related- transaction costs 0.02 — 0.02 —
Stock-based compensation expenses(1) 0.04 0.05 0.12 0.15 Other(3)
(0.01 ) — 0.02 (0.02 ) Non-GAAP diluted earnings per
share(2) $ 2.27 $ 2.75 $ 7.06 $ 8.87
Non-GAAP adjustment summary: Cost of goods sold
adjustments $ 211 $ 211 $ 659 $ 632 Research and development
expenses adjustments 44 160 138 1,100 Selling, general and
administrative expenses adjustments 73 51 186 150 Interest expense
adjustments 18 — 18 — Total non-GAAP
adjustments before tax 346 422 1,001 1,882 Income tax effect(1) (74
) (74 ) (183 ) (151 ) Other(3) — (1 ) — 4
Total non-GAAP adjustments after tax $ 272 $ 347 $
818 $ 1,735 Notes: (1) Income tax effect
related to stock-based compensation expenses for the three and nine
months ended September 30, 2017 includes the incremental tax
benefit of $27 million and $60 million, respectively, recognized
from the adoption of Accounting Standards Update 2016-09
“Improvements to Employee Share-Based Payment Accounting” (2)
Amounts may not sum due to rounding (3) Amounts related to
restructuring, contingent consideration, consolidation of a
contract manufacturer and/or other individually insignificant
amounts
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP 2017
FULL YEAR GUIDANCE
(unaudited)
(in millions, except percentages and
per share amounts)
InitiallyProvidedFebruary
7, 2017ReiteratedMay 2, 2017
UpdatedJuly 26, 2017
UpdatedOctober 26, 2017
Projected product gross margin GAAP to non-GAAP
reconciliation: GAAP projected product gross margin 82% - 84%
82% - 84% 82% - 83% Acquisition-related expenses(1)(3) 4% - 4% 4% -
4% 4% - 4% Non-GAAP projected product gross margin(2) 86% - 88% 86%
- 88% 86% - 87%
Projected research and development
expenses GAAP to non-GAAP reconciliation: GAAP projected
research and development expenses $3,295 - $3,640 $3,410 - $3,655
$3,535 - $3,685 Stock-based compensation expenses(1)(3) (180) -
(195) (195) - (210) (220) - (240) Acquisition-related expenses(1) /
up-front collaboration expenses (15) - (45) (15) - (45) (15) - (45)
Non-GAAP projected research and development expenses $3,100 -
$3,400 $3,200 - $3,400 $3,300 - $3,400
Projected selling,
general and administrative expenses GAAP to non-GAAP
reconciliation: GAAP projected selling, general and
administrative expenses $3,305 - $3,615 $3,435 - $3,645 $3,755 -
$3,940 Stock-based compensation expenses(1)(3) (205) - (215) (235)
- (245) (375) - (435) Acquisition-related expenses- transaction
costs and other(1) — —
(80) - (105)
Non-GAAP projected selling, general and administrative expenses
$3,100 - $3,400 $3,200 - $3,400 $3,300 - $3,400
Projected
diluted EPS impact of acquisition-related, up-front collaboration,
stock-based compensation and other expenses:
Acquisition-related expenses(1) / up-front collaboration expenses
$0.62 - $0.67 $0.62 - $0.67 $0.72 - $0.82 Stock-based compensation
expenses(1) 0.22 - 0.24 0.24 - 0.26 0.30 - 0.35 Projected diluted
EPS impact of acquisition-related, up-front collaboration,
stock-based compensation and other expenses $0.84 - $0.91 $0.86 -
$0.93 $1.02 - $1.17 Notes: (1) Acquisition-related expenses,
including acquisition-related amortization of intangible assets and
stock-based compensation expenses, associated with Gilead’s
acquisition of Kite are subject to adjustments pending completion
of preliminary purchase accounting and valuation (2) Total
stock-based compensation expenses have a less than one percent
impact on non-GAAP projected product gross margin (3) Amounts
include preliminary estimates of a range between $188 million and
$251 million total stock-based compensation expenses associated
with Gilead’s acquisition of Kite
GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited)
(in millions)
September 30, December 31, 2017
2016(1) Cash, cash equivalents and marketable
securities $ 41,360 $ 32,380 Accounts receivable, net 4,122 4,514
Inventories 1,144 1,587 Property, plant and equipment, net 3,100
2,865 Intangible assets, net 8,342 8,971 Goodwill 1,172 1,172 Other
assets 5,422 5,488 Total assets $ 64,662 $ 56,977
Current liabilities $ 9,597 $ 9,218 Long-term liabilities
29,811 28,396 Stockholders’ equity(2) 25,254 19,363 Total
liabilities and stockholders’ equity $ 64,662 $ 56,977
Notes: (1) Derived from the audited consolidated financial
statements as of December 31, 2016. Certain amounts have been
reclassified to conform to current year presentation (2) As of
September 30, 2017, there were 1,307 million shares of common stock
issued and outstanding
GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY
(unaudited)
(in millions)
Three Months Ended Nine Months Ended
September 30, September 30, 2017
2016 2017 2016 Antiviral products:
Genvoya – U.S. $ 810 $ 407 $ 2,189 $ 816 Genvoya – Europe 146 46
358 92 Genvoya – Other International 32 8 67
13 988 461 2,614 921 Harvoni – U.S. 718
1,084 2,628 3,965 Harvoni – Europe 110 380 583 1,447 Harvoni –
Other International 145 396 515 2,029 973
1,860 3,726 7,441 Epclusa – U.S. 543
593 2,142 657 Epclusa – Europe 263 40 649 40 Epclusa – Other
International 76 7 154 7 882 640
2,945 704 Truvada – U.S. 604 573 1,635 1,780 Truvada
– Europe 154 217 527 713 Truvada – Other International 53 68
175 205 811 858 2,337 2,698
Atripla – U.S. 324 486 974 1,454 Atripla – Europe 79 129 259
412 Atripla – Other International 36 35 133
132 439 650 1,366 1,998 Descovy – U.S.
241 65 682 114 Descovy – Europe 65 23 149 35 Descovy – Other
International 10 — 22 — 316 88
853 149 Odefsey – U.S. 255 95 688 164 Odefsey –
Europe 37 10 87 10 Odefsey – Other International 4 —
6 — 296 105 781 174 Viread –
U.S. 137 155 395 420 Viread – Europe 55 77 202 234 Viread – Other
International 82 71 237 208 274 303
834 862 Complera / Eviplera – U.S.(1) 91 254
315 675 Complera / Eviplera – Europe 133 143 385 445 Complera /
Eviplera – Other International 13 14 44 40 237
411 744 1,160 Stribild – U.S.(1) 181
525 632 1,227 Stribild – Europe 40 78 161 243 Stribild – Other
International 8 18 38 57 229 621
831 1,527 Sovaldi – U.S. 32 363 120 1,783 Sovaldi –
Europe 19 184 238 727 Sovaldi – Other International 168 278
489 950 219 825 847 3,460
Note: (1) Amounts for the three and nine months ended September 30,
2016 include a favorable adjustment of rebate reserves of $223
million and $89 million for Stribild and Complera, respectively
GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY -
(Continued)
(unaudited)
(in millions)
Three Months Ended Nine Months Ended
September 30, September 30, 2017
2016 2017 2016 Vosevi – U.S. $ 117 $ —
$ 117 $ — Vosevi – Europe 5 — 5 — Vosevi – Other International 1
— 1 — 123 — 123 —
Other Antiviral – U.S. 48 14 101 36 Other Antiviral – Europe 7 5 17
18 Other Antiviral – Other International 1 — 4
2 56 19 122 56 Total antiviral products
– U.S. 4,101 4,614 12,618 13,091 Total antiviral products – Europe
1,113 1,332 3,620 4,416 Total antiviral products – Other
International 629 895 1,885 3,643 5,843
6,841 18,123 21,150 Other products: Letairis
213 215 654 593 Ranexa 164 170 517 467 AmBisome 92 91 276 262
Zydelig 40 39 110 129 Other 50 49 145 136 559
564 1,702 1,587 Total product sales $
6,402 $ 7,405 $ 19,825 $ 22,737
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171026006376/en/
Gilead Sciences, Inc.InvestorsRobin Washington, 650-522-5688Sung
Lee, 650-524-7792orMediaAmy
Flood, 650-522-5643
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