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FOSTER CITY, Calif.--(BUSINESS WIRE)--Jan. 30, 2006--Gilead Sciences, Inc. (Nasdaq:GILD):
- Full Year Record Total Revenues of $2.03 Billion, Up 53 Percent over 2004
- Full Year HIV Product Sales of $1.39 Billion, Up 53 Percent over 2004
- Fourth Quarter EPS of $0.59; Full Year EPS of $1.72
Gilead Sciences, Inc. (Nasdaq:GILD) announced today its results of operations for the fourth quarter and full year of 2005. Total revenues for the fourth quarter of 2005 were $609.3 million, up 65 percent compared to total revenues of $369.6 million for the fourth quarter of 2004. Total revenues for 2005 exceeded $2 billion for the first time, while full year operating income topped $1.11 billion. Net income for the fourth quarter of 2005 was $281.6 million, or $0.59 per diluted share compared to net income of $110.2 million, or $0.24 per diluted share for the fourth quarter of 2004. Diluted earnings per share for 2005 was $1.72, a 74 percent increase from 2004.
Excluding the tax benefit realized from the repatriation of foreign earnings under the American Jobs Creation Act, non-GAAP net income for the fourth quarter of 2005 was $256.5 million, or $0.54 per diluted share, more than double the non-GAAP net income of $114.8 million, or $0.25 per diluted share for the fourth quarter of 2004.
Product Sales
Net product sales were a record $493.4 million for the fourth quarter of 2005, marking nine consecutive quarters of product sales growth. This growth continues to be driven primarily by Gilead's HIV product franchise, including the continued strong uptake of Truvada(R) (emtricitabine and tenofovir disoproxil fumarate) since its U.S. launch in August of 2004, as well as continued strong product sales for AmBisome(R) (amphotericin B) liposome for injection and Hepsera(R) (adefovir dipivoxil).
HIV/AIDS Franchise
HIV product sales were $384.8 million in the fourth quarter of 2005, a 47 percent increase from $261.7 million for the same period in 2004. For 2005, HIV sales were $1.39 billion compared to $908.4 million in 2004, a 53 percent increase.
-- Truvada
Truvada sales were $191.1 million for the fourth quarter of 2005, an increase of 18 percent compared to the third quarter of 2005. Sales of Truvada commenced in the United States in the third quarter of 2004 and in certain European countries during 2005. Truvada sales comprised 50 percent of total HIV product sales for the fourth quarter 2005 and 41 percent for the full year of 2005.
-- Viread
Sales of Viread(R) (tenofovir disoproxil fumarate) were $182.4 million in the fourth quarter of 2005, an eight percent decrease from $198.8 million in the fourth quarter of 2004. Sales of Viread in 2005 were $778.8 million, relatively flat compared to $782.9 million in 2004, driven by the continued strong performance of Viread offset by patients switching from a Viread-containing regimen to one containing Truvada in countries where Truvada is available. Compared to the same quarter last year, fourth quarter 2005 Viread sales volume decreased by 27 percent in the United States, while aggregate sales volume in Europe, Asia, Canada, Australia and Latin America increased by 15 percent.
-- Emtriva
Emtriva(R) (emtricitabine) sales were $11.2 million for the fourth quarter of 2005, down 15 percent from the fourth quarter of 2004. Emtriva sales were $47.5 million in 2005, an 18 percent decrease from $57.6 million in 2004. These decreases are primarily driven by patients switching from an Emtriva-containing regimen to one containing Truvada in countries where Truvada is available.
AmBisome for Severe Fungal Infections
AmBisome sales for the fourth quarter of 2005 were $55.6 million, an increase of one percent compared to the fourth quarter of 2004. AmBisome sales for 2005 were $220.8 million, an increase of four percent from 2004. Compared to 2004, AmBisome sales volume for 2005 increased by 15 percent, largely offset by lower pricing in most regions.
Hepsera for Chronic Hepatitis B
Sales of Hepsera totaled $51.2 million for the fourth quarter of 2005, a 43 percent increase from $35.9 million in the fourth quarter of 2004. Sales of Hepsera for 2005 totaled $186.5 million, a 66 percent increase from 2004. The increase in sales for the fourth quarter and full year of 2005 was primarily driven by significant volume growth in both the United States and Europe.
"We are pleased to have achieved total revenues in 2005 in excess of $2 billion. This record performance was led by the 53 percent growth in our HIV franchise as well as the continued strength of AmBisome and Hepsera which led to record net income of over $813 million," said John F. Milligan, PhD, Executive Vice President and Chief Financial Officer of Gilead. "During the fourth quarter, net income also benefited from the recognition of significant Tamiflu(R) (oseltamivir phosphate) royalties and the tax benefit realized from the repatriation of foreign earnings."
Royalty and Contract Revenues
For the fourth quarter of 2005, royalty and contract revenues resulting from collaborations with corporate partners totaled $115.8 million, an increase of $101.8 million from the fourth quarter of 2004. Royalty and contract revenues for 2005 totaled $219.1 million, a 166 percent increase from 2004. The increase in the fourth quarter and full year of 2005 was primarily driven by the recognition of Tamiflu royalties received from F. Hoffmann-La Roche Ltd (Roche) of $101.4 million and $161.6 million, respectively. These amounts were significantly higher than the Tamiflu royalties of $5.8 million and $44.6 million received from Roche and recognized in the fourth quarter and full year of 2004, respectively, primarily due to the resolution of our dispute with Roche in the fourth quarter of 2005, as well as the significantly higher Tamiflu sales recorded by Roche during the first three calendar quarters of 2005 compared to the same periods in 2004. Related to our dispute resolution with Roche, we recognized $80.7 million of royalty revenues in the fourth quarter of 2005, comprised of $18.2 million relating to disputed royalties from 2001 to 2003, $11.8 million relating to the reimbursement of the cost of goods adjustment for 2004, and $50.7 million relating to the updating of royalties payable to Gilead for the first nine months of 2005 based on current year royalty rates instead of the prior year's effective royalty rate.
Research and Development
Research and development (R&D) expenses for the fourth quarter of 2005 were $68.8 million, compared to $70.2 million for the same quarter in 2004. Excluding $13.0 million of upfront license fees incurred during the fourth quarter of 2004 related to our hepatitis C virus (HCV) collaborations, our R&D expense for the fourth quarter of 2005 was higher due to increased headcount and clinical and product development activities with our HCV, hepatitis B virus and HIV programs. R&D expenses for 2005 were $277.7 million, an increase of 24 percent compared to 2004. The higher R&D expenses during 2005 were primarily attributable to the factors mentioned above, as well as the $15.0 million payment made to Emory University (Emory) in connection with the amendment of our existing license agreement with Emory related to our obligation to develop emtricitabine for the hepatitis B indication and the $15.0 million payment made to Japan Tobacco related to the signing of our HIV integrase license agreement for GS 9137, a novel HIV integrase inhibitor.
Selling, General and Administrative
Selling, general and administrative (SG&A) expenses for the fourth quarter of 2005 were $104.3 million, compared to $85.4 million for the same quarter in 2004. The higher SG&A expenses in the fourth quarter of 2005 compared to the fourth quarter of 2004 were primarily due to increased headcount, as well as expansion of our sales and marketing activities, partially offset by lower bad debt expense resulting from higher collections in certain European countries. SG&A expenses for 2005 were $379.2 million, an increase of 25 percent compared to 2004. The higher SG&A expenses in 2005 were primarily due to the factors mentioned above as well as severance and other expenses associated with the relocation of our European commercial, medical and administrative headquarters from France to the United Kingdom.
The net foreign exchange impact on pre-tax earnings, including revenue and expenses generated outside the United States as well as hedging activity for the fourth quarter of 2005, was a favorable $6.1 million compared to the same period in 2004. This is primarily the result of the company's foreign currency hedge program which offset the impact of a stronger US dollar in the fourth quarter of 2005 when compared to the same period last year. The net foreign exchange impact on pre-tax earnings for the full year of 2005 was a favorable $20.8 million, due mostly to the stronger Euro currency during the first half of 2005 compared to the same period last year.
As of December 31, 2005, Gilead had cash, cash equivalents, and marketable securities of $2.32 billion, compared to $1.66 billion as of September 30, 2005. The increase in cash, cash equivalents and marketable securities was primarily attributable to $340.4 million of operating cash flow generated during the quarter which includes the payments received from Roche in relation to our dispute resolution, as well as $334.9 million of financing cash flow including $300.0 million of proceeds from our term loan which our Irish subsidiary entered into in order to facilitate our repatriation of foreign earnings under the American Jobs Creation Act.
Corporate Highlights
On November 18, 2005, Gilead and Roche announced that the companies had ended their dispute and expanded the collaboration related to the companies' 1996 Development and License Agreement for Tamiflu.
On December 13, 2005, Gilead announced that John W. Madigan has been appointed to its Board of Directors. Also, in December 2005, Gilead announced that George P. Shultz, PhD had resigned from its Board and has become a Director Emeritus. As such, he will continue to serve in an advisory capacity to the Board.
In late December 2005, Gilead announced that its Board of Directors had approved approximately $280 million in foreign earnings pursuant to the American Jobs Creation Act of 2004. The company had subsequently repatriated approximately $280 million in foreign earnings in late December 2005. Proceeds from the repatriation will be reinvested into Gilead's domestic operations consistent with the intent of the legislation.
Product and Pipeline Highlights
"The fourth quarter of 2005 concluded a year of significant achievement for our company and has set the bar for another important year ahead," said John C. Martin, PhD, President and Chief Executive Officer of Gilead. "We, along with our partner Bristol-Myers Squibb, recently announced the successful completion of a bioequivalence study for the fixed-dose regimen of Truvada and Sustiva(R) (efavirenz). We are now significantly closer to delivering the first once-daily fixed-dose antiretroviral regimen into the hands of doctors and patients fighting HIV. In addition, we continue to make progress with compounds in our pipeline and look forward to releasing results from the Phase I/II study of GS 9137, a novel HIV integrase inhibitor licensed from Japan Tobacco, and initiating a Phase II study of GS 9137 in the first half of this year."
HIV/AIDS Franchise
In November 2005, positive preliminary 24-week data from the COMET (COMbination of Efavirenz and Truvada) study were first presented at the 10th European AIDS Conference (EACS) in Dublin, Ireland. The data were also presented in December 2005 at the 45th Annual Interscience Conference on Antimicrobial Agents and Chemotherapy in Washington DC. Gilead plans to present complete 24-week data from the COMET study during the second half of 2006.
In early December 2005, Gilead announced the launch of www.ChangeofHAART.com, a new educational website featuring information about advances in HIV treatment.
During the fourth quarter of 2005, Gilead continued its rollout of Truvada in the European Union with launches in the important markets of Italy and France. The product is now commercially available in 15 countries outside of the United States, including Japan, where it is marketed by Gilead's commercialization partner, Japan Tobacco.
Hepatitis Franchise
In November 2005, the company presented positive data from Hepsera Study 438 describing the sustained efficacy and safety of Hepsera for up to five years of treatment among patients with hepatitis B "e" antigen-negative, presumed precore mutant chronic hepatitis B. These results were presented at the 56th American Association for the Study of Liver Diseases Annual Meeting in San Francisco, California and have been submitted to the FDA for inclusion in the Hepsera product label.
Antifungal Franchise
In early December 2005, Gilead announced results from the AmBiLoad study, a clinical trial that compared a 3 mg/kg/day treatment course of AmBisome to a 10 mg/kg/day loading regimen for the initial two weeks of treatment in immunocompromised patients with invasive aspergillosis and other life-threatening fungal infections. Results of the AmBiLoad study were presented at the American Society of Hematology 47th Annual Meeting in Atlanta, Georgia.
Conference Call
At 4:30 p.m. Eastern Time today, Gilead will webcast a conference call live on Gilead's website to discuss its fourth quarter and full year 2005 results and outlook. During the call, Gilead will be discussing additional financial and statistical information. That information can be found on Gilead's website at www.gilead.com under "Investors." To access the webcast via the internet, log on to www.gilead.com. Please connect to the company's website at least 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 1-866-761-0749 (U.S.) or 1-617-614-2707 (international) and enter the participant passcode 30987097 to access the call. Telephone replay is available approximately two hours after the call through 4:00 p.m. Eastern Time on February 1, 2006. To access, please call 1-888-286-8010 (U.S.) or 1-617-801-6888 (international) and enter the participant passcode 13311464. The webcast will be archived on www.gilead.com for one year.
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 worldwide. Headquartered in Foster City, California, Gilead has operations in North America, Europe and Australia.
Non-GAAP Financial Information
Non-GAAP financial information is utilized by Gilead management to help gain a better understanding of the comparative operating performance of the company.
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. These statements include those relating to: revenues, research and development expenses, and selling, general and administrative expenses; the efficacy of any marketed or pipeline products; the timing of and ability to obtain marketing approval for Gilead's development products; or the market introduction, competitive positioning and commercial arrangements for sale of its marketed or pipeline development products. Gilead cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially. These risks and uncertainties include our ability and the ability of our partners to successfully introduce and market our products and grow revenues, in particular, our ability to sustain the uptake and revenues for our HIV franchise; our ability to accurately estimate end-user demand since we must make numerous assumptions and must rely on incomplete data to make these estimates; our ability to effectively manage wholesaler inventory levels and the impact of those efforts on revenues; our ability to generate additional positive clinical data, including with respect to GS 9137, and expand the labels for our existing products; our ability to control the timing and amount of spending in our research and clinical programs; our ability to protect our patents and other intellectual property both domestically and internationally; legislation or regulations affecting product pricing, reimbursement or access; unanticipated expenses such as litigation or legal settlement expenses; our ability to receive regulatory approvals, in a timely manner or at all, for new and current products, including Truvada and the fixed-dose regimen of Truvada and Sustiva; fluctuations in foreign currency against the U.S. dollar; our ability to continue to observe the safety, tolerability and efficacy data for our products that we have observed to date as the safety and efficacy data obtained in controlled clinical trials for such products may not be observed in an uncontrolled clinical setting; the reluctance of physicians to prescribe Truvada if they fail to see advantages of Truvada over other antiretrovirals; 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, 2004 and its subsequent current reports on Form 8-K and quarterly reports on Form 10-Q. 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.
Viread, Emtriva, Truvada, AmBisome, and Hepsera are registered trademarks of Gilead Sciences, Inc.
Tamiflu is a registered trademark of F. Hoffmann-La Roche Ltd.
Sustiva is a registered trademark of Bristol-Myers Squibb Pharma Company.
For more information on Gilead Sciences, 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 thousands, except per share amounts)
Three months ended Year ended
December 31, December 31,
------------------- -----------------------
2005 2004 2005 2004
--------- -------- ----------- ----------
Revenues:
Product sales $493,426 $355,581 $1,809,299 $1,242,224
Royalty and contract
revenues 115,840 14,005 219,101 82,397
--------- --------- ----------- -----------
Total revenues 609,266 369,586 2,028,400 1,324,621
Costs and expenses:
Cost of goods sold 74,144 48,705 260,326 166,587
Research and development 68,763 70,160 277,724 223,552
Selling, general and
administrative 104,329 85,422 379,248 302,793
--------- --------- ----------- -----------
Total costs and expenses 247,236 204,287 917,298 692,932
--------- --------- ----------- -----------
Income from operations 362,030 165,299 1,111,102 631,689
Gain on Eyetech warrants (1) - - - 20,576
Make-whole payment on debt
redemption (2) - (7,438) - (7,438)
Interest and other income,
net 15,751 5,803 47,137 18,940
Interest expense (392) (1,145) (442) (7,345)
Minority interest in joint
venture 1,597 - 3,995 -
--------- --------- ----------- -----------
Income before provision for
income taxes 378,986 162,519 1,161,792 656,422
Provision for income taxes 97,384 52,276 347,878 207,051
--------- --------- ----------- -----------
Net income $281,602 $110,243 $813,914 $ 449,371
========= ========= =========== ===========
Net income per share -
basic $ 0.61 $ 0.25 $1.79 $ 1.04
========= ========= =========== ===========
Net income per share -
diluted (3) $ 0.59 $ 0.24 $1.72 $ 0.99
========= ========= =========== ===========
Shares used in per share
calculation - basic 458,538 440,253 454,339 432,000
========= ========= =========== ===========
Shares used in per share
calculation - diluted (3) 479,175 460,199 474,284 464,246
========= ========= =========== ===========
------
Notes:
(1) During the first quarter of 2004, Gilead recorded a pre-tax gain
of $20.6 million related to our warrants in Eyetech
Pharmaceuticals, Inc., which completed its initial public offering
during the quarter.
(2) During the fourth quarter of 2004, in conjunction with the
redemption of Gilead's $345.0 million 2% convertible senior debt,
Gilead made a pre-tax make-whole payment of $7.4 million equal to
$60 per $1,000 principal value less any interest actually paid or
accrued from debt issuance to redemption.
(3) Shares used in the calculation of net income per diluted share for
the three months and year ended December 31, 2005 include the
effect of outstanding stock options to purchase 20.6 million and
19.9 million shares of common stock, respectively. In accordance
with SFAS No. 128, using the If-Converted Method, interest expense
of $9.2 million, net of tax, related to convertible senior debt
has been added back to net income for purposes of calculating
diluted net income per share for the year ended December 31, 2004.
The shares used in the calculation of net income per diluted share
for the three months ended December 31, 2004 include the effect of
outstanding stock options to purchase 19.9 million of shares of
common stock. The shares used in the calculation of net income per
diluted share for the year ended December 31, 2004 include the
effect of outstanding stock options to purchase 19.3 million,
respectively, of shares of common stock, and the pro-rated effect
of the $345.0 million 2% convertible senior debt then outstanding,
which converts to approximately 12.9 million shares.
GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2005 2004
------------- ------------
(unaudited) (Note 1)
Assets
Cash, cash equivalents and marketable
securities $2,323,885 $1,254,038
Other current assets 768,323 595,656
------------- ------------
Total current assets 3,092,208 1,849,694
Property, plant and equipment, net 242,568 223,106
Other noncurrent assets 429,875 83,163
------------- ------------
$3,764,651 $2,155,963
============= ============
Liabilities and stockholders' equity
Current liabilities $455,338 $253,453
Long-term liabilities 281,535 31,638
Stockholders' equity 3,027,778 1,870,872
------------- ------------
$3,764,651 $2,155,963
============= ============
----
Note:
(1) Derived from audited consolidated financial statements at that
date.
GILEAD SCIENCES, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
The non-GAAP financial information presented below is utilized by
Gilead management to help gain a better understanding of the
comparative operating performance of the Company.
Three
months
ended
December
Three months ended 31,
December 31, 2005 2004
------------------------------ ---------
GAAP Adjustment Non- Non-
(1) GAAP GAAP(2)
--------- ---------- -------- ---------
Revenues:
Product sales $493,426 $ - $493,426 $355,581
Royalty and contract
revenues 115,840 - 115,840 14,005
--------- ---------- --------- ---------
Total revenues 609,266 - 609,266 369,586
Costs and expenses:
Cost of goods sold 74,144 - 74,144 48,705
Research and development 68,763 - 68,763 70,160
Selling, general and
administrative 104,329 - 104,329 85,422
--------- ---------- --------- ---------
Total costs and expenses 247,236 - 247,236 204,287
--------- ---------- --------- ---------
Income from operations 362,030 - 362,030 165,299
Interest and other income,
net 15,751 - 15,751 5,803
Interest expense (392) - (392) (1,145)
Minority interest in joint
venture 1,597 - 1,597 -
--------- ---------- --------- ---------
Income before provision for
income taxes 378,986 - 378,986 169,957
Provision for income taxes 97,384 25,081 122,465 55,177
--------- ---------- --------- ---------
Net income (loss) $281,602 $ (25,081) $256,521 $114,780
========= ========== ========= =========
Net income (loss) per share -
basic $ 0.61 $ (0.05) $ 0.56 $ 0.26
========= ========== ========= =========
Net income (loss) per share -
diluted (3) $ 0.59 $ (0.05) $ 0.54 $ 0.25
========= ========== ========= =========
Shares used in per share
calculation - basic 458,538 458,538 440,253
========= ========= =========
Shares used in per share
calculation - diluted (3) 479,175 479,175 467,813
========= ========= =========
-----
Notes:
(1) The adjustment reflects a one-time tax provision benefit of
approximately $25.1 million related to a qualified dividend
distribution made during the three months ended December 31, 2005
under the American Jobs Creation Act of 2004.
(2) The non-GAAP results for the three months ended December 31, 2004
exclude the pre-tax make-whole payment of $7.4 million related to
the redemption of Gilead's $345.0 million 2% convertible senior
debt. Gilead made a make-whole payment equal to $60 per $1,000
principal value less any interest actually paid or accrued from
debt issuance to redemption.
(3) Shares used in the calculation of net income per diluted share for
the three months ended December 31, 2005 include the effect of
outstanding stock options to purchase 20.6 million shares of
common stock. In accordance with SFAS No. 128, using the
If-Converted Method, interest expense of $0.7 million, net of tax,
related to convertible debt has been added back to net income for
purposes of calculating diluted net income per share for the three
months ended December 31, 2004. Shares used in the calculation of
non-GAAP net income per diluted share for the three months ended
December 31, 2004 include the effect of outstanding stock options
to purchase 19.9 million shares of common stock, and the pro-rated
effect of the $345.0 million 2% convertible senior debt then
outstanding, which converts to approximately 7.6 million shares.
GILEAD SCIENCES, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
The non-GAAP financial information presented below is utilized by
Gilead management to help gain a better understanding of the
comparative operating performance of the Company.
Year ended
December
Year ended 31,
December 31, 2005 2004
---------------------------------- -----------
GAAP Adjustment Non-GAAP Non-GAAP(2)
(1)
----------- ---------- ---------- -----------
Revenues:
Product sales $1,809,299 $ - $1,809,299 $1,242,224
Royalty and contract
revenues 219,101 - 219,101 82,397
----------- ---------- ----------- -----------
Total revenues 2,028,400 - 2,028,400 1,324,621
Costs and expenses:
Cost of goods sold 260,326 - 260,326 166,587
Research and
development 277,724 - 277,724 223,552
Selling, general and
administrative 379,248 - 379,248 302,793
----------- ---------- ----------- -----------
Total costs and
expenses 917,298 - 917,298 692,932
----------- ---------- ----------- -----------
Income from operations 1,111,102 - 1,111,102 631,689
Interest and other
income, net 47,137 - 47,137 18,940
Interest expense (442) - (442) (7,345)
Minority interest in
joint venture 3,995 - 3,995 -
----------- ---------- ----------- -----------
Income before provision
for income taxes 1,161,792 - 1,161,792 643,284
Provision for income
taxes 347,878 25,081 372,959 201,927
----------- ---------- ----------- -----------
Net income (loss) $ 813,914 $ (25,081) $ 788,833 $ 441,357
=========== ========== =========== ===========
Net income (loss) per
share - basic $ 1.79 $ (0.06) $ 1.74 $ 1.02
=========== ========== =========== ===========
Net income (loss) per
share - diluted (3) $ 1.72 $ (0.05) $ 1.66 $ 0.96
=========== ========== =========== ===========
Shares used in per
share calculation -
basic 454,339 454,339 432,000
=========== =========== ===========
Shares used in per
share calculation -
diluted (3) 474,284 474,284 464,246
=========== =========== ===========
-----
Notes:
(1) The adjustment reflects a one-time tax provision benefit of
approximately $25.1 million related to a qualified dividend
distribution made during the three months ended December 31, 2005
under the American Jobs Creation Act of 2004.
(2) The non-GAAP results for the year ended December 31, 2004 excludes
the first quarter pre-tax gain of $20.6 million related to our
warrants in Eyetech Pharmaceuticals, Inc., which completed its
initial public offering during the first quarter of 2004, and the
fourth quarter pre-tax make-whole payment of $7.4 million related
to the redemption of Gilead's $345.0 million 2% convertible senior
debt. Gilead made a make-whole payment equal to $60 per $1,000
principal value less any interest actually paid or accrued from
debt issuance to redemption.
(3) Shares used in the calculation of net income per diluted share for
the year ended December 31, 2005 include the effect of outstanding
stock options to purchase 19.9 million shares of common stock. In
accordance with SFAS No. 128, using the If-Converted Method,
interest expense of $4.6 million, net of tax, related to
convertible senior debt has been added back to net income for
purposes of calculating diluted net income per share for the year
ended December 31, 2004. Shares used in the calculation of
non-GAAP net income per diluted share for the year ended December
31, 2004 include the effect of outstanding stock options to
purchase 19.3 million shares of common stock, and the pro-rated
effect of the $345.0 million 2% convertible senior debt then
outstanding, which converts to approximately 12.9 million shares.
GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY
(unaudited)
(in thousands)
Three months ended Year ended
December 31, December 31,
------------------- -----------------------
2005 2004 2005 2004
------------------- -----------------------
HIV products:
Truvada - U.S. $149,359 $49,618 $489,802 $67,785
Truvada - International 41,790 39 78,027 80
--------- --------- ----------- -----------
191,149 49,657 567,829 67,865
Viread - U.S. 77,561 103,898 337,444 437,540
Viread - International 104,873 94,879 441,339 345,375
--------- --------- ----------- -----------
182,434 198,777 778,783 782,915
Emtriva - U.S. 4,476 8,874 19,576 46,758
Emtriva - International 6,694 4,342 27,910 10,842
--------- --------- ----------- -----------
11,170 13,216 47,486 57,600
Total HIV products - U.S. 231,396 162,390 846,822 552,083
Total HIV products -
International 153,357 99,260 547,276 356,297
--------- --------- ----------- -----------
384,753 261,650 1,394,098 908,380
Hepsera - U.S. 23,553 17,221 82,932 55,798
Hepsera - International 27,616 18,686 103,600 56,727
--------- --------- ----------- -----------
51,169 35,907 186,532 112,525
AmBisome 55,596 55,025 220,753 211,688
Other products 1,908 2,999 7,916 9,631
--------- --------- ----------- -----------
Total product sales $493,426 $355,581 $1,809,299 $1,242,224
========= ========= =========== ===========
CONTACT: Gilead Sciences, Inc. John Milligan, 650-522-5756 Susan Hubbard, 650-522-5715 SOURCE: Gilead Sciences, Inc.
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