Press Releases
April 21, 2009
Gilead Sciences Announces Record First Quarter 2009 Financial Results
Product Sales
Product sales increased 27 percent to a record
Antiviral Franchise
Antiviral product sales increased 28 percent to
- Truvada
Truvada sales increased 23 percent to
- Atripla
Atripla sales increased 57 percent to
- Other Antiviral Products
Other antiviral product sales, including Viread® (tenofovir
disoproxil fumarate), Hepsera® (adefovir dipivoxil) and
Emtriva® (emtricitabine), decreased one percent to
Letairis
Sales of Letairis® (ambrisentan) for the treatment of
pulmonary arterial hypertension increased 95 percent to
Royalty, Contract and Other Revenues
Royalty, contract and other revenues resulting primarily from
collaborations with corporate partners were
Research and Development
Research and development (R&D) expenses in the first quarter of 2009
were
Selling, General and Administrative
Selling, general and administrative (SG&A) expenses in the first quarter
of 2009 were
Net Foreign Currency Exchange Impact
The net foreign currency exchange impact on first quarter 2009 revenues
and pre-tax earnings, which includes revenues and expenses generated
from outside
Cash,
As of
Adoption of New Accounting Pronouncements
On
On
Corporate Highlights
In
In
Product and Pipeline Update
Antiviral Franchise
In
Cardiovascular Franchise
In
Respiratory Franchise
In
In
Conference Call
At
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
About Gilead
Non-GAAP Financial Information
Non-GAAP net income attributable to Gilead and net income attributable
to Gilead per diluted share for the three months ended
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 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 GS 9350, a
single-tablet fixed-dose regimen containing elvitegravir, GS 9350 and
Truvada, cicletanine hydrochloride or aztreonam for inhalation solution;
Gilead’s ability to successfully commercialize any products that receive
regulatory approvals; Gilead’s ability to successfully develop its
respiratory and cardiovascular franchises; initiating and completing
clinical trials may take longer or cost more than expected; fluctuations
in the foreign 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; our ability to consummate
additional purchases under our share repurchase program due to changes
in our stock price, corporate or other market conditions; risks and
uncertainties related to Gilead’s ability to successfully integrate the
products and employees of Gilead and
Gilead directs readers to its Annual Report on Form 10-K for the year
ended
Truvada, Viread, Hepsera, AmBisome and Letairis are registered
trademarks of
Atripla is a registered trademark of
Tamiflu is a registered trademark of
For more information on
| GILEAD SCIENCES, INC. | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||
| (unaudited) | |||||||||
| (in thousands, except per share amounts) | |||||||||
| Three Months Ended | |||||||||
| March 31, | |||||||||
| 2009 | 2008 | ||||||||
| Revenues: | |||||||||
| Product sales | $ | 1,447,580 | $ | 1,141,306 | |||||
| Royalty, contract and other revenues | 82,880 | 116,846 | |||||||
| Total revenues | 1,530,460 | 1,258,152 | |||||||
| Costs and expenses: | |||||||||
| Cost of goods sold (1) | 329,414 | 239,848 | |||||||
| Research and development (1) | 188,779 | 155,301 | |||||||
| Selling, general and administrative (1) | 203,951 | 194,957 | |||||||
| Total costs and expenses | 722,144 | 590,106 | |||||||
| Income from operations | 808,316 | 668,046 | |||||||
| Interest and other income, net | 4,159 | 22,700 | |||||||
| Interest expense (2) | (16,671 | ) | (16,001 | ) | |||||
| Income before provision for income taxes | 795,804 | 674,745 | |||||||
| Provision for income taxes (1)(2) | 209,227 | 188,320 | |||||||
| Net income (3) | 586,577 | 486,425 | |||||||
| Net loss attributable to noncontrolling interest (3) | 2,535 | 1,875 | |||||||
| Net income attributable to Gilead (3) | $ | 589,112 | $ | 488,300 | |||||
| Net income per share attributable to Gilead common stockholders - basic (3) | $ | 0.65 | $ | 0.53 | |||||
| Net income per share attributable to Gilead common stockholders - diluted (3) | $ | 0.63 | $ | 0.51 | |||||
| Shares used in per share calculation - basic | 909,780 | 928,104 | |||||||
| Shares used in per share calculation - diluted | 942,479 | 966,554 | |||||||
| Notes: | |||||||||
| (1) | Stock-based compensation expense included in the respective captions of the condensed consolidated statements of income shown above is as follows: | ||||||||
| Three Months Ended | |||||||||
| March 31, | |||||||||
| 2009 | 2008 | ||||||||
| Stock-based compensation expense: | |||||||||
| Cost of goods sold | $ | 3,254 | $ | 1,694 | |||||
| Research and development | 16,955 | 16,895 | |||||||
| Selling, general and administrative | 20,836 | 17,547 | |||||||
| Income tax effect | (10,757 | ) | (10,135 | ) | |||||
| Total stock-based compensation expense, net of tax | $ | 30,288 | $ | 26,001 | |||||
| (2) | On January 1, 2009, Gilead adopted FSP APB 14-1 on a retrospective basis for its convertible senior notes and recorded additional after-tax interest expense of $8.3 million, net of a tax benefit of $5.3 million, for the three months ended March 31, 2009, and reflected additional after-tax interest expense of $7.8 million, net of a tax benefit of $5.1 million, for the three months ended March 31, 2008. | ||||||||
| (3) | On January 1, 2009, Gilead adopted SFAS 160 and presented on a retrospective basis its noncontrolling interest (formerly minority interest) as net loss attributable to noncontrolling interest which is a component of consolidated net income. | ||||||||
| GILEAD SCIENCES, INC. | ||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION | ||||||
| (unaudited) | ||||||
| (in thousands, except per share amounts) | ||||||
|
Included below is a reconciliation of GAAP net income attributable to Gilead and diluted per share amounts as reported in the attached press release. Non-GAAP net income attributable to Gilead and net income attributable to Gilead per diluted share for the three months ended March 31, 2009 and 2008 are presented excluding the after-tax impact of stock-based compensation expense and have been adjusted for the application of APB 25 in computing non-GAAP dilutive securities. Management believes this non-GAAP information is useful for investors, taken in conjunction with Gilead’s GAAP financial statements, 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. |
||||||
| Three Months Ended | ||||||
| March 31, | ||||||
| 2009 | 2008 | |||||
| Net income attributable to Gilead (GAAP) | $ | 589,112 | $ | 488,300 | ||
| Stock-based compensation expense, net of tax | 30,288 | 26,001 | ||||
| Net income attributable to Gilead (Non-GAAP) | $ | 619,400 | $ | 514,301 | ||
| Shares used in per share calculation - diluted (GAAP) | 942,479 | 966,554 | ||||
| Dilutive securities | 799 | 2,121 | ||||
| Shares used in per share calculation - diluted (Non-GAAP) | 943,278 | 968,675 | ||||
| Net income per share attributable to Gilead common stockholders - diluted (GAAP) | $ | 0.63 | $ | 0.51 | ||
| Net income per share attributable to Gilead common stockholders - diluted (Non-GAAP) | $ | 0.66 | $ | 0.53 | ||
| GILEAD SCIENCES, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands) | |||||||
| March 31, | December 31, | ||||||
| 2009 | 2008 | ||||||
| (unaudited) | (Note 1) | ||||||
| Cash, cash equivalents and marketable securities | $ | 3,608,889 | $ | 3,239,639 | |||
| Accounts receivable, net | 1,068,000 | 1,023,397 | |||||
| Inventories | 936,727 | 927,868 | |||||
| Property, plant and equipment, net | 679,437 | 528,799 | |||||
| Other assets (2) | 1,226,861 | 1,217,128 | |||||
| Total assets | $ | 7,519,914 | $ | 6,936,831 | |||
| Current liabilities | $ | 1,261,797 | $ | 1,220,992 | |||
| Long-term liabilities (2)(3) | 1,240,834 | 1,250,256 | |||||
| Stockholders’ equity (2)(3) | 5,017,283 | 4,465,583 | |||||
| Total liabilities and stockholders’ equity | $ | 7,519,914 | $ | 6,936,831 | |||
| Note: | |||||||
| (1) | Derived from audited consolidated financial statements at that date adjusted for retrospective application of FSP APB 14-1 and SFAS 160 per notes 2 and 3 below. | ||||||
| (2) | On January 1, 2009, Gilead adopted FSP APB 14-1 on a retrospective basis for its convertible senior notes. As of December 31, 2008, the retrospective adoption of FSP APB 14-1 decreased deferred tax assets and debt issuance costs included in other assets by an aggregate of $81.7 million, decreased convertible senior notes included in long-term liabilities by $201.8 million, and increased total stockholders’ equity by $120.1 million after a charge of $82.6 million to retained earnings. | ||||||
| (3) | On January 1, 2009, Gilead adopted SFAS 160 and reclassified its noncontrolling interest (formerly minority interest) of $193.0 million from liabilities to stockholders’ equity on a retrospective basis. | ||||||
| GILEAD SCIENCES, INC. | |||||||
| PRODUCT SALES SUMMARY | |||||||
| (unaudited) | |||||||
| (in thousands) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2009 | 2008 | ||||||
| (Note 1) | |||||||
| Antiviral products: | |||||||
| Truvada – U.S. | $ | 280,997 | $ | 238,532 | |||
| Truvada – Europe | 278,440 | 218,367 | |||||
| Truvada – Other International | 30,916 | 22,486 | |||||
| 590,353 | 479,385 | ||||||
| Atripla – U.S. | 374,132 | 306,485 | |||||
| Atripla – Europe | 124,779 | 14,195 | |||||
| Atripla – Other International | 10,972 | 3,537 | |||||
| 509,883 | 324,217 | ||||||
|
|
|
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| Viread – U.S. | 69,589 | 63,068 | |||||
| Viread – Europe | 65,331 | 65,716 | |||||
| Viread – Other International | 25,685 | 23,883 | |||||
| 160,605 | 152,667 | ||||||
|
|
|
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| Hepsera – U.S. | 25,652 | 31,275 | |||||
| Hepsera – Europe | 38,917 | 48,463 | |||||
| Hepsera – Other International | 8,145 | 3,284 | |||||
| 72,714 | 83,022 | ||||||
|
|
|
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| Emtriva – U.S. | 3,630 | 3,838 | |||||
| Emtriva – Europe | 2,354 | 2,581 | |||||
| Emtriva – Other International | 1,250 | 1,970 | |||||
| 7,234 | 8,389 | ||||||
|
|
|
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| Total Antiviral products – U.S. | 754,000 | 643,198 | |||||
| Total Antiviral products – Europe | 509,821 | 349,322 | |||||
| Total Antiviral products – Other International | 76,968 | 55,160 | |||||
| 1,340,789 | 1,047,680 | ||||||
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|
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| AmBisome | 64,271 | 71,028 | |||||
| Letairis | 39,580 | 20,337 | |||||
| Other products | 2,940 | 2,261 | |||||
| 106,791 | 93,626 | ||||||
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| Total product sales | $ | 1,447,580 | $ | 1,141,306 | |||
| (1) | Certain prior period amounts have been reclassified to conform to the current period presentation. | ||||||
Source:
Gilead Sciences, Inc.
Investors
Robin
Washington, 650-522-5688
Susan Hubbard, 650-522-5715
Media
Amy
Flood, 650-522-5643