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Foster City, CA -- April 30, 1998
Gilead Sciences, Inc. (NASDAQ:GILD) announced today its results of operations for the first quarter ended March 31, 1998. For this quarter, the Company reported revenues from net product sales of $1.8 million, revenues from collaborative agreements of $11.4 million and revenues from product royalties of $0.4 million, for total revenues of $13.6 million and net interest income of $5.0 million.
This compares to revenues from net product sales of $3.0 million, revenues from collaborative agreements of $2.3 million and revenues from product royalties of $0.1 million, for total revenues of $5.5 million and net interest income of $4.0 million for the same quarter in 1997.
The net loss for the three months ended March 31, 1998 was $7.4 million, or $0.25 per share, compared to a net loss of $7.9 million, or $0.27 per share for the same quarter in 1997.
For both the 1998 and 1997 periods ending March 31, product sales were derived from the sale of VISTIDE® (cidofovir injection), which Gilead markets independently in the United States for the treatment of cytomegalovirus (CMV) retinitis in patients with AIDS. The other revenues were received as a result of collaborations with corporate partners, including contract revenues for research and development projects and royalties on product sales of VISTIDE in the European Union, sold by Gilead's partner Pharmacia & Upjohn.
In the first quarter of 1998, Gilead recognized $11.4 million in contract revenues from corporate partners, $10.7 million of which was received from F. Hoffmann-La Roche Ltd. as reimbursement for expenses associated with the research and development of GS 4104, an oral compound in Phase II/III development for the treatment and prevention of influenza infection. This revenue from Hoffmann-La Roche included $5.2 million attributable to research and development expenses incurred in the fourth quarter of 1997 that exceeded the original fourth quarter 1997 budget due to the accelerated development of this product candidate; the budgeted amount was already recognized as revenue in the fourth quarter. The balance of $5.5 million from Hoffmann-La Roche represents reimbursement for Gilead's actual efforts on the influenza project incurred in the first quarter of 1998.
Research and development expenses for the first quarter of 1998 were $18.9 million compared to $10.8 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.
As of March 31, 1998, the Company had cash, cash equivalents and short-term investments of $315.4 million, compared to $322.3 million at 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.
GILEAD SCIENCES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)
| Three months endedMarch 31, | ||
| 1998 | 1997 | |
| (unaudited) | ||
| Revenues | ||
| Product sales, net | $ 1,795 | $ 3,034 |
| Contract revenues | 11,407 | 2,330 |
| Royalty revenues | 358 | 102 |
| Total revenues | 13,560 | 5,466 |
| Costs and expenses | ||
| Cost of sales | 230 | 487 |
| Research and development | 18,930 | 10,826 |
| Selling, general and administrative | 6,742 | 6,147 |
| Total costs and expenses | 25,902 | 17,460 |
| Loss from operations | (12,342) | (11,994) |
| Interest income, net | 4,958 | 4,046 |
| Net loss | $ (7,384) | $ (7,948) |
| Basic and diluted loss per share | $ ( 0.25) | $ ( 0.27) |
| Common shares used in the in the calculation of basic and diluted loss per share | 30,103 | 28,930 |
GILEAD SCIENCES, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
| March 31,1998(unaudited) | December 31,1997(Note 1) | |
| Assets | ||
| Cash, cash equivalents and short-term investments | $ 315,427 | $ 322,298 |
| Other current assets | 21,979 | 17,960 |
| Total current assets | 337,406 | 340,258 |
| Property and equipment, net | 10,506 | 10,313 |
| Other assets | 1,509 | 1,498 |
| $ 349,421 | $ 352,069 | |
| Liabilities and stockholders' equity | ||
| Current liabilities | $ 36,877 | $ 33,391 |
| Long-term obligations | 1,129 | 1,331 |
| Stockholders' equity | 311,415 | 317,347 |
| $ 349,421 | $ 352,069 | |
| Note 1: Derived from audited financial statements. | ||
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