Gilead
 
Full Year 2010 Guidance

($ in millions, except percentages and per share amounts)

Provided on 1/26/10

Net Product Sales

$ 7,600 – 7,700

Non-GAAP Product Gross Margin*

 75% - 77%

Non-GAAP Expenses
    R&D* $850 - 870
    SG&A* $900 - 920

Effective Tax Rate

 25% - 26%

Diluted EPS Impact of Acquisition,
Restructuring and Stock-Based
    Compensation Expenses

 $0.27 - 0.30

*Non-GAAP product gross margin and expenses are non-GAAP and exclude the impact of acquisition, restructuring and stock-based compensation expenses, where applicable.  Management believes this non-GAAP information is useful for investors, taken in conjunction with Gilead’s GAAP financial statements, because management currently 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 U.S. GAAP.



Projected product gross margin GAAP to non-GAAP reconciliation:

 1/26/10
GAAP projected product gross margin 74% - 76%
    Acquisition-related amortization of inventory mark-up and
    purchased intangibles		 1% - 1%
Non-GAAP projected product gross margin* 75% - 77%
 

Projected research and development expenses GAAP to non-GAAP reconciliation:
GAAP projected research and development expenses $955 - $990
    Restructuring expenses ($5 - $9)
    Stock-based compensation expenses ($100 - $111)
Non-GAAP projected research and development expenses $850 - $870
 

Projected selling, general and administrative expenses GAAP to non-GAAP reconciliation:
GAAP projected selling, general and administrative expenses $1,031 - $1,073
    Restructuring expenses ($15 - $24)
    Stock-based compensation expenses ($116 - $129)
Non-GAAP projected selling, general and administrative expenses $900 - $920
 

Projected diluted EPS Impact of acquisition, restructuring and stock-based compensation expenses:
    Acquisition-related amortization of inventory mark-up $0.01 - $0.01
    Acquisition-related amortization of purchased intangibles $0.06 - $0.06
    Restructuring expenses $0.02 - $0.03
    Stock-based compensation expenses $0.18 - $0.20
Projected diluted EPS impact of acquisition, restructuring and stock-based compensation expenses $0.27 - $0.30

* Stock-based compensation expenses have a less than one percent impact on non-GAAP product gross margin

Forward-looking Statements

The projected financial results presented on this page represent management's estimates of Gilead’s future financial results.  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 sustain growth in revenues for its antiviral and cardiovascular franchises; unpredictable variability of Tamiflu royalties and the strong relationship between this royalty revenue and global pandemic planning and supply; Gilead’s ability to receive regulatory approvals in a timely manner or at all, for new and current products, including aztreonam for inhalation solution in the United States and Viread for HBV in Asia; Gilead’s ability to successfully commercialize any products that may receive regulatory approvals, including aztreonam for inhalation solution in the United States and Viread for HBV in Asia; Gilead’s ability to successfully develop its respiratory and cardiovascular franchises; initiating and completing clinical trials may take longer or cost more than expected, including in the clinical study evaluating ambrisentan and tadalafil in patients with PAH; fluctuations in the foreign currency exchange rate of the U.S. dollar that may reduce or eliminate the favorable foreign currency exchange impact on Gilead’s future revenues and pre-tax earnings; impact of potential U.S. healthcare reform and international government pricing pressures; and other risks identified from time to time in Gilead’s reports filed with the U.S. Securities and Exchange Commission. Gilead directs readers to its Annual Report on Form 10-K for the year ended December 31, 2008, its Quarterly Reports on Form 10-Q for the first, second and third quarters of 2009 and its subsequent current reports on Form 8-K. 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.