July 30, 1998
Gilead Announces Second Quarter 1998 Financial Results
Foster City, CA -- July 30, 1998
Gilead Sciences, Inc. (NASDAQ:GILD) announced today its results of operations for the second quarter ended June 30, 1998. For this quarter, the Company reported revenues from net product sales of $1.6 million, contract revenues of $4.7 million and royalty revenues of $0.8 million, for total revenues of $7.0 million and net interest income of $5.0 million. This compares to revenues from net product sales of $3.9 million and contract revenues of $15.8 million, for total revenues of $19.7 million and net interest income of $4.2 million for the same quarter in 1997.
The net loss for the three months ended June 30, 1998 was $14.8 million, or $0.49 per share, compared to net income of $2.7 million, or $0.09 per share, for the same quarter in 1997. Gilead was profitable during the second quarter of 1997, due primarily to a $10 million milestone payment from Pharmacia & Upjohn following the marketing authorization for VISTIDE® (cidofovir injection) in the European Union. During the second quarter of 1997, Gilead also received a $3 million milestone payment from F. Hoffmann-La Roche associated with the development of GS 4104 for the treatment and prevention of viral influenza.
Net revenues from product sales were derived from sales of VISTIDE, which Gilead markets independently in the United States for the treatment of cytomegalovirus (CMV) retinitis in patients with AIDS. The decline in VISTIDE-related revenues reflects a continuing decline in the incidence of CMV retinitis as a result of more effective human immunodeficiency virus (HIV) therapies. The other revenues result from collaborations with corporate partners, including contract revenues for research and development projects, and royalties on product sales of VISTIDE in the European Union by Gilead's partner Pharmacia & Upjohn.
Research and development expenses for the second quarter of 1998 were $18.3 million, compared to $14.7 million for the same period in 1997. This increase was due primarily to expenses associated with the advancement of four therapeutic candidates into later stages of clinical development.
Gilead also reported its results of operations for the six months ended June 30, 1998. The Company reported net revenues from product sales of $3.4 million and aggregate contract and royalty revenues of $17.2 million, for total revenues of $20.6 million and net interest income of $10.0 million for this period. This compares to revenues from product sales of $7.0 million and aggregate contract and royalty revenues of $18.2 million, for total revenues of $25.2 million and net interest income of $8.2 million for the six months ended June 30, 1997. The net loss for the six months ended June 30, 1998 was $22.2 million, or $0.74 per share, compared to a net loss of $5.2 million, or $0.18 per share for the six months ended June 30, 1997.
As of June 30, 1998, the Company had cash, cash equivalents and short-term investments of $312.6 million, compared to $322.3 million on December 31, 1997.
Gilead Sciences is an independent biopharmaceutical company that seeks to provide accelerated solutions for patients and the people who care for them. The Company discovers, develops and commercializes proprietary therapeutics for important viral diseases, including a currently marketed product for the treatment of CMV retinitis, a sight-threatening viral infection in patients with AIDS. In addition, the Company is developing products to treat diseases caused by HIV, hepatitis B virus and influenza virus. Gilead common stock is traded on The Nasdaq Stock Market under the symbol GILD.
For more information, call the Gilead Corporate Communications Department at 1-800/GILEAD-5 (1-800/445-3235).
|GILEAD SCIENCES, INC.|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(in thousands, except per share amounts)|
|3 months ended, June 30||6 months ended, June 30|
|Product sales, net||$ 1,598||$ 3,956||$ 3,393||$ 6,990|
|Costs and expenses:|
|Cost of sales||114||328||344||815|
|Research and development||18,330||14,696||37,260||25,522|
|Selling, general and administrative||8,443||6,146||15,186||12,292|
|Total costs and expenses||26,887||21,170||52,790||38,629|
|Income (loss) from operations||(19,851)||(1,444)||(32,194)||(13,438)|
|Interest income, net||5,007||4,155||9,965||8,201|
|Net income (loss)||$(14,844)||$ 2,711||$(22,229)||$ (5,237)|
|Basic and diluted income (loss) per share||$ (0.49)||$ 0.09||$ (0.74)||$ (0.18)|
|Common shares used in the calculation of basic income (loss) per share||30,295||29,107||30,199||29,018|
|Common shares used in the calculation of diluted income (loss) per share||30,295||31,057||30,199||29,018|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(in thousands, unaudited)|
|June 30, 1998||December 31, 1997|
|Cash, cash equivalents and short-term investments||$312,641||$322,298|
|Other current assets||9,151||17,960|
|Total current assets||321,792||340,258|
|Property and equipment, net||10,052||10,313|
|Liabilities and stockholders' equity|
|Current liabilities||$ 31,917||$ 33,391|
Note: Derived from audited financial statements at that date.
CONTACT: Gilead Sciences, Inc.
Lana Lauher, 650/573-4858