- Fourth Quarter Product Sales of $7.2
billion -
- Full Year 2016 Product Sales of $30.0
billion -
- Full Year 2016 Diluted EPS of $9.94 per
share -
- Full Year 2016 Non-GAAP Diluted EPS of
$11.57 per share -
Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results
of operations for the fourth quarter and full year 2016. Total
revenues for the fourth quarter of 2016 were $7.3 billion, compared
to $8.5 billion for the same period in 2015. Net income for the
fourth quarter of 2016 was $3.1 billion, or $2.34 per diluted
share, compared to $4.7 billion, or $3.18 per diluted share for the
same period in 2015. Non-GAAP net income, which excludes amounts
related to acquisition-related, up-front collaboration, stock-based
compensation and other expenses, for the fourth quarter of 2016 was
$3.6 billion, or $2.70 per diluted share, compared to $4.9 billion,
or $3.32 per diluted share for the same period in 2015.
Full year 2016 total revenues were $30.4 billion, compared to
$32.6 billion for 2015. Net income for 2016 was $13.5 billion, or
$9.94 per diluted share, compared to $18.1 billion, or $11.91 per
diluted share for 2015. Non-GAAP net income for 2016, which
excludes amounts related to acquisition-related, up-front
collaboration, stock-based compensation and other expenses, was
$15.7 billion, or $11.57 per diluted share, compared to $19.2
billion, or $12.61 per diluted share for 2015.
Three Months Ended Twelve Months Ended
December 31, December 31, (In millions, except per
share amounts) 2016 2015
2016 2015 Product sales $ 7,216 $ 8,409
$ 29,953 $ 32,151 Royalty, contract and other revenues 104
97 437 488 Total revenues $ 7,320 $
8,506 $ 30,390 $ 32,639 Net income
attributable to Gilead $ 3,108 $ 4,683 $ 13,501 $ 18,108 Non-GAAP
net income* $ 3,585 $ 4,889 $ 15,713 $ 19,174 Diluted
earnings per share $ 2.34 $ 3.18 $ 9.94 $ 11.91 Non-GAAP diluted
earnings per share* $ 2.70 $ 3.32 $ 11.57 $ 12.61
* Non-GAAP net income and non-GAAP diluted earnings per share
exclude acquisition-related, up-front collaboration, stock-based
compensation and other expenses. A reconciliation between GAAP and
non-GAAP financial information is provided in the tables on pages 7
and 8.
Product Sales
Total product sales for the fourth quarter of 2016 were $7.2
billion, compared to $8.4 billion for the same period in 2015.
Product sales for the fourth quarter of 2016 were $4.9 billion in
the United States, $1.4 billion in Europe, $314 million in Japan
and $556 million in other locations. Product sales for the fourth
quarter of 2015 were $4.8 billion in the United States, $1.7
billion in Europe, $1.4 billion in Japan and $565 million in other
locations.
Total product sales during 2016 were $30.0 billion, compared to
$32.2 billion in 2015. For 2016, product sales were $19.3 billion
in the United States, $6.1 billion in Europe, $2.5 billion in Japan
and $2.1 billion in other locations. For 2015, product sales were
$21.2 billion in the United States, $7.2 billion in Europe, $1.9
billion in Japan and $1.9 billion in other locations.
Antiviral Product Sales
Antiviral product sales, which include sales of our HIV and
other antiviral products and our chronic hepatitis C (HCV)
products, were $6.6 billion for the fourth quarter of 2016,
compared to $7.9 billion for the same period in 2015. For 2016,
antiviral product sales were $27.7 billion, compared to $30.2
billion in 2015.
- HIV and other antiviral product sales
for the fourth quarter of 2016 were $3.4 billion, compared to $3.0
billion for the same period in 2015 and $12.9 billion for the full
year 2016, compared to $11.1 billion in 2015. The increases were
primarily due to the continued uptake of our tenofovir alafenamide
(TAF)-based products, Genvoya® (elvitegravir 150 mg/cobicistat 150
mg/emtricitabine 200 mg/tenofovir alafenamide 10 mg), Descovy®
(emtricitabine 200 mg/tenofovir alafenamide 25 mg) and Odefsey®
(emtricitabine 200 mg/rilpivirine 25 mg/tenofovir alafenamide 25
mg), partially offset by decreases in sales of tenofovir disoproxil
fumarate (TDF)-based products.
- HCV product sales, which consist of
Harvoni® (ledipasvir 90 mg/sofosbuvir 400 mg), Sovaldi® (sofosbuvir
400 mg) and Epclusa® (sofosbuvir 400 mg/velpatasvir 100 mg), were
$3.2 billion for the fourth quarter of 2016, compared to $4.9
billion for the same period in 2015 and $14.8 billion for the full
year 2016, compared to $19.1 billion in 2015. The declines were due
to lower sales of Harvoni and Sovaldi, partially offset by sales of
Epclusa, which was launched in 2016 across various locations.
Other Product Sales
Other product sales, which include Letairis® (ambrisentan),
Ranexa® (ranolazine) and AmBisome® (amphotericin B for liposome
injection), were $621 million for the fourth quarter of 2016,
compared to $523 million for the same period in 2015. For 2016,
other product sales were $2.2 billion, compared to $1.9 billion in
2015.
Operating Expenses
Three Months Ended Twelve Months Ended
December 31, December 31, (In millions)
2016 2015 2016 2015
Research and development (R&D) expenses $ 1,208 $ 757 $ 5,098 $
3,014 Non-GAAP R&D expenses* $ 959 $ 779 $ 3,749 $ 2,845
Selling, general and administrative (SG&A) expenses $ 992 $
1,066 $ 3,398 $ 3,426 Non-GAAP SG&A expenses* $ 938 $ 1,013 $
3,194 $ 3,224
* Non-GAAP R&D and SG&A expenses exclude
acquisition-related, up-front collaboration, stock-based
compensation and other expenses. A reconciliation between GAAP and
non-GAAP financial information is provided in the tables on pages 7
and 8.
During the fourth quarter of 2016, compared to the same period
in 2015:
- R&D expenses and non-GAAP R&D
expenses* increased primarily due to the overall progression of
Gilead’s clinical studies, including ongoing milestone
payments.
- R&D expenses for the fourth quarter
of 2016 also include an impairment charge related to in-process
R&D (IPR&D).
For 2016 compared to 2015:
- R&D expenses and non-GAAP R&D
expenses* increased primarily due to the overall progression of
Gilead’s clinical studies, including ongoing milestone payments,
and Gilead’s purchase of a U.S. Food and Drug Administration (FDA)
priority review voucher.
- R&D expenses for 2016 also include
up-front collaboration expenses related to Gilead’s license and
collaboration agreement with Galapagos NV, purchase of Nimbus
Apollo, Inc. and impairment charges related to IPR&D.
- SG&A expenses and non-GAAP SG&A
expenses* decreased primarily due to lower branded prescription
drug fee expense, partially offset by higher costs to support
Gilead’s product launches and the geographic expansion of its
business.
Cash, Cash Equivalents and Marketable
Securities
As of December 31, 2016, Gilead had $32.4 billion of cash, cash
equivalents and marketable securities, compared to $26.2 billion as
of December 31, 2015, primarily due to the issuance of $5.0 billion
aggregate principal amount of senior unsecured notes in September
2016. During 2016, Gilead generated $16.7 billion in operating cash
flow, utilized $11.0 billion to repurchase 123 million shares of
its stock and paid cash dividends of $2.5 billion.
Full Year 2017 Guidance
Gilead provided its full year 2017 guidance:
(In millions, except percentages and per share amounts)
Provided
February 7, 2017
Net Product Sales $22,500 - $24,500 Non-HCV Product Sales $15,000 -
$15,500 HCV Product Sales $7,500 - $9,000 Non-GAAP* Product Gross
Margin 86% - 88% R&D Expenses $3,100 - $3,400 SG&A Expenses
$3,100 - $3,400 Effective Tax Rate 25.0% - 28.0% Diluted EPS Impact
of Acquisition-related, Up-front Collaboration, Stock-Based
Compensation and Other Expenses $0.84 - $0.91
* Non-GAAP product gross margin, R&D and SG&A expenses
and effective tax rate exclude acquisition-related, up-front
collaboration, stock-based compensation and other expenses. A
reconciliation between GAAP and non-GAAP full year 2017 guidance is
provided in the tables on page 9.
Corporate Highlights
- Announced the promotion of James R.
Meyers to Executive Vice President, Worldwide Commercial
Operations, in November 2016.
Product & Pipeline Updates
announced by Gilead during the Fourth Quarter of 2016
include:
Antiviral and Liver Diseases Programs
- Announced that FDA and Japanese
Ministry of Health, Labour and Welfare approved Vemlidy® (tenofovir
alafenamide) 25mg, a once-daily treatment for adults with chronic
hepatitis B virus (HBV) infection with compensated liver disease.
Additionally, the Committee for Medicinal Products for Human Use,
the scientific committee of the European Medicines Agency, adopted
a positive opinion on Gilead’s Marketing Authorization Application
for Vemlidy.
- Announced the submission of a New Drug
Application (NDA) to FDA for an investigational, once-daily
single-tablet regimen containing sofosbuvir 400 mg, velpatasvir 100
mg, and voxilaprevir 100 mg for the treatment of direct-acting
antiviral (DAA)-experienced HCV-infected patients. The data
submitted in the NDA support the use of the regimen for 12 weeks in
DAA-experienced patients with genotype 1 to 6 HCV infection without
cirrhosis or with compensated cirrhosis.
- Announced positive results from an
open-label Phase 2 trial evaluating the investigational apoptosis
signal-regulating kinase 1 inhibitor selonsertib (formerly GS-4997)
alone or in combination with the monoclonal antibody simtuzumab in
patients with nonalcoholic steatohepatitis and moderate to severe
liver fibrosis (fibrosis stages F2 or F3). The data demonstrate
regression in fibrosis that was, in parallel, associated with
reductions in other measures of liver injury in patients treated
with selonsertib for 24 weeks. These data were presented in a
late-breaking abstract session at the Liver Meeting® 2016.
- Announced positive two-year (96-week)
data from a Phase 3 study and 48-week data from two Phase 3b
studies evaluating the safety and efficacy of switching
virologically suppressed HIV-1-infected patients from regimens
containing Truvada® (emtricitabine 200 mg/tenofovir disoproxil
fumarate 300 mg) to regimens containing Descovy®. Results
demonstrated regimens containing Descovy to be statistically
non-inferior to regimens containing Truvada, with improvements in
certain renal and bone laboratory parameters among patients
receiving Descovy-based regimens.
Non-GAAP Financial
Information
The information presented in this document has been prepared by
Gilead in accordance with U.S. generally accepted accounting
principles (GAAP), unless otherwise noted as non-GAAP. Management
believes non-GAAP information is useful for investors, when
considered in conjunction with Gilead’s GAAP financial information,
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. Non-GAAP
measures may be defined and calculated differently by other
companies in the same industry. A reconciliation between GAAP and
non-GAAP financial information is provided in the tables on pages
7, 8 and 9.
Conference Call
At 4:30 p.m. Eastern Time today, Gilead’s management will host a
conference call and a simultaneous webcast to discuss results from
its fourth quarter 2016 and full year 2016 as well as provide 2017
guidance and a general business update. To access the webcast live
via the internet, please connect to the company’s website at
www.gilead.com/investors 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 1-877-359-9508 (U.S.) or 1-224-357-2393
(international) and dial the conference ID 43555238 to access the
call.
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 February 9,
2017. To access the phone replay, please call 1-855-859-2056 (U.S.)
or 1-404-537-3406 (international) and dial the conference ID
43555238.
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. Gilead has
operations in more than 30 countries worldwide, with headquarters
in Foster City, California.
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 achieve its anticipated full year 2017
financial results; Gilead’s ability to sustain growth in revenues
for its antiviral and other programs; the risk that estimates of
patients with HCV or anticipated patient demand may not be
accurate; the risk that private and public payers may be reluctant
to provide, or continue to provide, coverage or reimbursement for
new products, including Epclusa, Harvoni, Genvoya, Odefsey, Descovy
and Vemlidy; the potential for increased pricing pressure and
contracting pressure as well as decreased volume and market share
from additional competitive HCV launches; austerity measures in
European countries and Japan that may increase the amount of
discount required on Gilead’s products; an increase in discounts,
chargebacks and rebates due to ongoing contracts and future
negotiations with commercial and government payers; a larger than
anticipated shift in payer mix to more highly discounted payer
segments and geographic regions and decreases in treatment
duration; availability of funding for state AIDS Drug Assistance
Programs (ADAPs) and Veterans Administration (VA); continued
fluctuations in ADAP and VA purchases driven by federal and state
grant cycles which may not mirror patient demand and may cause
fluctuations in Gilead’s earnings; market share and price erosion
caused by the introduction of generic versions of Viread and
Truvada outside the United States, an uncertain global
macroeconomic environment; and potential amendments to the
Affordable Care Act or other government action that could have the
effect of lowering prices or reducing the number of insured
patients; the possibility of unfavorable results from clinical
trials involving investigational compounds; Gilead’s ability to
initiate clinical trials in its currently anticipated timeframes;
the levels of inventory held by wholesalers and retailers which may
cause fluctuations in Gilead’s earnings; Gilead’s ability to submit
new drug applications for new product candidates in the timelines
currently anticipated; Gilead’s ability to receive regulatory
approvals in a timely manner or at all, for new and current
products, including its single-tablet regimen containing
sofosbuvir, velpatasvir and voxilaprevir; Gilead’s ability to
successfully commercialize its products, including Epclusa,
Harvoni, Genvoya, Odefsey, Descovy and Vemlidy; the risk that
physicians and patients may not see advantages of these products
over other therapies and may therefore be reluctant to prescribe
the products; Gilead’s ability to successfully develop its
oncology, inflammation, cardiovascular and respiratory programs;
safety and efficacy data from clinical studies may not warrant
further development of Gilead’s product candidates, including
selonsertib; Gilead’s ability to pay dividends or complete its
share repurchase program due to changes in its stock price,
corporate or other market conditions; fluctuations in the foreign
exchange rate of the U.S. dollar that may cause an unfavorable
foreign currency exchange impact on Gilead’s future revenues and
pre-tax earnings; and other risks identified from time to time in
Gilead’s reports filed with the U.S. Securities and Exchange
Commission (SEC). In addition, Gilead makes estimates and judgments
that affect the reported amounts of assets, liabilities, revenues
and expenses and related disclosures. Gilead bases its estimates on
historical experience and on various other market specific and
other relevant assumptions that it believes to be reasonable under
the circumstances, the results of which form the basis for making
judgments about the carrying values of assets and liabilities that
are not readily apparent from other sources. Actual results may
differ significantly from these estimates. You are urged to
consider statements that include the words may, will, would, could,
should, might, believes, estimates, projects, potential, expects,
plans, anticipates, intends, continues, forecast, designed, goal,
or the negative of those words or other comparable words to be
uncertain and forward-looking. Gilead directs readers to its press
releases, Quarterly Report on Form 10-Q for the quarter ended
September 30, 2016 and other subsequent disclosure documents filed
with the SEC. 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.
Gilead owns or has rights to various
trademarks, copyrights and trade names used in our business,
including the following: GILEAD®, GILEAD SCIENCES®, AMBISOME®,
CAYSTON®, COMPLERA®, DESCOVY®, EMTRIVA®, EPCLUSA®, EVIPLERA®,
GENVOYA®, HARVONI®, HEPSERA®, LETAIRIS®, ODEFSEY®, RANEXA®,
SOVALDI®, STRIBILD®, TRUVADA®, TYBOST®, VEMLIDY®, VIREAD®,
VITEKTA®, VOLIBRIS®, and ZYDELIG®.
ATRIPLA® is a registered trademark of Bristol-Myers
Squibb & Gilead Sciences, LLC. LEXISCAN® is a registered
trademark of Astellas U.S. LLC. MACUGEN® is a registered trademark
of Eyetech, Inc. SUSTIVA® is a registered trademark of
Bristol-Myers Squibb Pharma Company. TAMIFLU® is a registered
trademark of Hoffmann-La Roche Inc.
For more information on Gilead Sciences, Inc.,
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 millions, except per share
amounts)
Three Months Ended Twelve Months Ended
December 31, December 31, 2016
2015 2016 2015 Revenues: Product sales
$ 7,216 $ 8,409 $ 29,953 $ 32,151 Royalty, contract and other
revenues 104 97 437 488 Total revenues
7,320 8,506 30,390 32,639 Costs and
expenses: Cost of goods sold 1,075 1,062 4,261 4,006 Research and
development expenses 1,208 757 5,098 3,014 Selling, general and
administrative expenses 992 1,066 3,398 3,426
Total costs and expenses 3,275 2,885 12,757
10,446 Income from operations 4,045 5,621 17,633
22,193 Interest expense (265 ) (230 ) (964 ) (688 ) Other income
(expense), net 140 46 428 154 Income
before provision for income taxes 3,920 5,437 17,097 21,659
Provision for income taxes 821 752 3,609 3,553
Net income 3,099 4,685 13,488 18,106 Net income (loss)
attributable to noncontrolling interest (9 ) 2 (13 ) (2 )
Net income attributable to Gilead $ 3,108 $ 4,683 $
13,501 $ 18,108 Net income per share
attributable to Gilead common stockholders - basic $ 2.36 $ 3.26 $
10.08 $ 12.37 Shares used in per share calculation - basic 1,316
1,436 1,339 1,464 Net income per share attributable to Gilead
common stockholders - diluted $ 2.34 $ 3.18 $ 9.94 $ 11.91 Shares
used in per share calculation - diluted 1,327 1,472 1,358 1,521
Cash dividends declared per share $ 0.47 $ 0.43 $ 1.84 $ 1.29
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL INFORMATION
(unaudited)
(in millions, except percentages and
per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31, 2016
2015 2016 2015 Cost of goods sold
reconciliation: GAAP cost of goods sold $ 1,075 $ 1,062 $ 4,261
$ 4,006 Acquisition related-amortization of purchased intangibles
(214 ) (206 ) (844 ) (826 ) Stock-based compensation expenses (3 )
(2 ) (14 ) (11 ) Other(1) 2 3 11 6
Non-GAAP cost of goods sold $ 860 $ 857 $ 3,414
$ 3,175
Product gross margin
reconciliation: GAAP product gross margin 85.1
%
87.4
%
85.8
%
87.5
%
Acquisition related-amortization of purchased intangibles 3.0
%
2.4
%
2.8
%
2.6
%
Non-GAAP product gross margin(2) 88.1
%
89.8
%
88.6
%
90.1
%
Research and development expenses reconciliation:
GAAP research and development expenses $ 1,208 $ 757 $ 5,098 $
3,014 Up-front collaboration expenses — — (373 ) — Acquisition
related expenses-acquired IPR&D — — (400 ) (66 ) Acquisition
related-IPR&D impairment (201 ) — (432 ) — Stock-based
compensation expenses (47 ) (45 ) (176 ) (173 ) Other(1) (1 ) 67
32 70 Non-GAAP research and development
expenses $ 959 $ 779 $ 3,749 $ 2,845
Selling, general and administrative expenses
reconciliation: GAAP selling, general and administrative
expenses $ 992 $ 1,066 $ 3,398 $ 3,426 Stock-based compensation
expenses (52 ) (50 ) (190 ) (198 ) Other(1) (2 ) (3 ) (14 ) (4 )
Non-GAAP selling, general and administrative expenses $ 938
$ 1,013 $ 3,194 $ 3,224
Operating
margin reconciliation: GAAP operating margin 55.3
%
66.1
%
58.0
%
68.0
%
Up-front collaboration expenses —
%
—
%
1.2
%
—
%
Acquisition related-amortization of purchased intangibles 2.9
%
2.4
%
2.8
%
2.5
%
Acquisition related expenses-acquired IPR&D —
%
—
%
1.3
%
0.2
%
Acquisition related-IPR&D impairment 2.7
%
—
%
1.4
%
—
%
Stock-based compensation expenses 1.4
%
1.1
%
1.3
%
1.2
%
Other(1) —
%
(0.8 )% (0.1
)%
(0.2 )% Non-GAAP operating margin(2) 62.3
%
68.9
%
65.9
%
71.7
%
Notes: (1) Amounts related to consolidation of a contract
manufacturer, contingent consideration and/or other individually
insignificant amounts (2) Amounts may not sum due to rounding
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL INFORMATION - (Continued)
(unaudited)
(in millions, except percentages and
per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31, 2016
2015 2016 2015 Effective tax rate
reconciliation: GAAP effective tax rate 20.9
%
13.8
%
21.1
%
16.4
%
Up-front collaboration expenses —
%
—
%
(0.4 )% —
%
Acquisition related-amortization of purchased intangibles (1.5 )% —
%
(0.8 )%
(0.3
)% Acquisition related expenses-acquired IPR&D —
%
—
%
(0.4 )% —
%
Stock-based compensation expenses —
%
—
%
—
%
0.1
%
Other(1) —
%
0.1
%
—
%
—
%
Non-GAAP effective tax rate(2) 19.4
%
13.9
%
19.5
%
16.2
%
Net income attributable to Gilead reconciliation:
GAAP net income attributable to Gilead $ 3,108 $ 4,683 $ 13,501 $
18,108 Up-front collaboration expenses — — 373 — Acquisition
related-amortization of purchased intangibles 206 203 818 808
Acquisition related expenses-acquired IPR&D — — 400 66
Acquisition related-IPR&D impairment 198 — 371 — Stock-based
compensation expenses 73 67 276 251 Other(1) — (64 ) (26 )
(59 ) Non-GAAP net income attributable to Gilead $ 3,585 $
4,889 $ 15,713 $ 19,174
Diluted
earnings per share reconciliation: GAAP diluted earnings per
share $ 2.34 $ 3.18 $ 9.94 $ 11.91 Up-front collaboration expenses
— — 0.27 — Acquisition related-amortization of purchased
intangibles 0.16 0.14 0.60 0.53 Acquisition related
expenses-acquired IPR&D — — 0.29 0.04 Acquisition
related-IPR&D impairment 0.15 — 0.27 — Stock-based compensation
expenses 0.06 0.05 0.20 0.17 Other(1) — (0.04 ) (0.02 )
(0.04 ) Non-GAAP diluted earnings per share(2) $ 2.70 $ 3.32
$ 11.57 $ 12.61
Shares used in per
share calculation (diluted) reconciliation: GAAP shares used in
per share calculation (diluted) 1,327 1,472 1,358 1,521 Share
impact of current stock-based compensation rules (1 ) — —
— Non-GAAP shares used in per share calculation
(diluted) 1,326 1,472 1,358 1,521
Non-GAAP adjustment summary: Cost of goods sold
adjustments $ 215 $ 205 $ 847 $ 831 Research and development
expenses adjustments 249 (22 ) 1,349 169 Selling, general and
administrative expenses adjustments 54 53 204 202 Other income
(expense) adjustments(1) — — — 1 Total
non-GAAP adjustments before tax 518 236 2,400 1,203 Income tax
effect (40 ) (34 ) (191 ) (150 ) Other(1) (1 ) 4 3 13
Total non-GAAP adjustments after tax $ 477 $ 206
$ 2,212 $ 1,066 Notes: (1) Amounts
related to consolidation of a contract manufacturer, contingent
consideration and/or other individually insignificant amounts (2)
Amounts may not sum due to rounding
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP 2017
FULL YEAR GUIDANCE
(unaudited)
(in millions, except percentages and
per share amounts)
Provided
February 7, 2017
Projected product gross margin GAAP to non-GAAP
reconciliation: GAAP projected product gross margin 82% - 84%
Acquisition-related expenses 4% - 4% Non-GAAP projected product
gross margin(1) 86% - 88%
Projected research and
development expenses GAAP to non-GAAP reconciliation: GAAP
projected research and development expenses $3,295 - $3,640
Acquisition-related expenses / up-front collaboration expenses (15)
- (45) Stock-based compensation expenses (180) - (195) Non-GAAP
projected research and development expenses $3,100 - $3,400
Projected selling, general and administrative expenses GAAP to
non-GAAP reconciliation: GAAP projected selling, general and
administrative expenses $3,305 - $3,615 Stock-based compensation
expenses (205) - (215) Non-GAAP projected selling, general and
administrative expenses $3,100 - $3,400
Projected diluted
EPS impact of acquisition-related, up-front collaboration,
stock-based compensation and other expenses:
Acquisition-related expenses / up-front collaboration expenses
$0.62 - $0.67 Stock-based compensation expenses 0.22 - 0.24
Projected diluted EPS impact of acquisition-related, up-front
collaboration, stock-based compensation and other expenses $0.84 -
$0.91 Note: (1) Stock-based compensation expenses have a
less than one percent impact on non-GAAP projected product gross
margin
GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited)
(in millions)
December 31, December 31, 2016
2015 (1) Cash, cash equivalents and marketable
securities $ 32,380 $ 26,208 Accounts receivable, net 4,514 5,854
Inventories 1,587 1,955 Property, plant and equipment, net 2,865
2,276 Intangible assets, net 8,971 10,247 Goodwill 1,172 1,172
Other assets 5,488 4,004 Total assets $ 56,977 $
51,716 Current liabilities $ 9,219 $ 9,890 Long-term
liabilities 28,395 22,711 Equity component of currently redeemable
convertible notes — 2 Stockholders’ equity(2) 19,363 19,113
Total liabilities and stockholders’ equity $ 56,977 $ 51,716
Notes: (1) Derived from the audited consolidated financial
statements as of December 31, 2015. Certain amounts have been
reclassified to conform to current year presentation (2) As of
December 31, 2016, there were 1,310 million shares of common stock
issued and outstanding
GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY
(unaudited)
(in millions)
Three Months Ended Twelve Months Ended
December 31, December 31, 2016
2015 2016 2015 Antiviral products:
Harvoni – U.S. $ 976 $ 1,707 $ 4,941 $ 10,090 Harvoni – Europe 363
587 1,810 2,219 Harvoni – Japan 195 899 1,839 1,010 Harvoni – Other
International 106 152 491 545 1,640
3,345 9,081 13,864 Epclusa – U.S. 934 — 1,591
— Epclusa – Europe 101 — 141 — Epclusa – Other International 13
— 20 — 1,048 — 1,752 —
Truvada – U.S. 604 587 2,384 2,057 Truvada – Europe 200 272
913 1,118 Truvada – Other International 64 77 269
284 868 936 3,566 3,459 Atripla
– U.S. 444 582 1,898 2,222 Atripla – Europe 108 161 520 694 Atripla
– Other International 55 57 187 218 607
800 2,605 3,134 Genvoya – U.S. 485 44 1,301 44
Genvoya – Europe 68 1 160 1 Genvoya – Other International 10
— 23 — 563 45 1,484 45
Sovaldi – U.S. 112 660 1,895 2,388 Sovaldi – Europe 164 259 891
1,601 Sovaldi – Japan 119 473 635 878 Sovaldi – Other International
146 155 580 409 541 1,547 4,001
5,276 Stribild – U.S. 296 408 1,523 1,476 Stribild –
Europe 71 83 314 282 Stribild – Other International 20 20
77 67 387 511 1,914 1,825
Viread – U.S. 171 156 591 541 Viread – Europe 68 77 302 310 Viread
– Other International 85 73 293 257 324
306 1,186 1,108 Complera / Eviplera – U.S. 146
216 821 796 Complera / Eviplera – Europe 135 149 580 576 Complera /
Eviplera – Other International 16 15 56 55 297
380 1,457 1,427 Odefsey – U.S. 138 —
302 — Odefsey – Europe 17 — 27 — 155 —
329 — Descovy – U.S. 112 — 226 — Descovy –
Europe 34 — 69 — Descovy – Other International 3 — 3
— 149 — 298 —
GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY -
(Continued)
(unaudited)
(in millions)
Three Months Ended Twelve Months Ended
December 31, December 31, 2016
2015 2016 2015 Other Antiviral –
U.S. $ 12 $ 9 $ 48 $ 39 Other Antiviral – Europe 4 6 22 26 Other
Antiviral – Other International — 1 2 4 16
16 72 69 Total antiviral products –
U.S. 4,430 4,369 17,521 19,653 Total antiviral products – Europe
1,333 1,595 5,749 6,827 Total antiviral products – Japan 314 1,372
2,474 1,888 Total antiviral products – Other International 518
550 2,001 1,839 6,595 7,886
27,745 30,207 Other products: Letairis 226 192 819
700 Ranexa 210 169 677 588 AmBisome 94 74 356 350 Zydelig 39 40 168
132 Other 52 48 188 174 621 523
2,208 1,944 Total product sales $ 7,216 $
8,409 $ 29,953 $ 32,151
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170207006383/en/
Gilead Sciences, Inc.InvestorsRobin Washington, 650-522-5688Sung
Lee, 650-524-7792MediaAmy
Flood, 650-522-5643
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