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8-K - FORM 8-K - GILEAD SCIENCES INCform8-kq315earningspressre.htm

CONTACTS:
Investors
 
 
Media
 
Robin Washington
 
 
Amy Flood
 
(650) 522-5688
 
 
(650) 522-5643
 
 
 
 
 
 
Patrick O'Brien
 
 
 
 
(650) 522-1936
 
 
 
 
 
 
 
 
For Immediate Release

GILEAD SCIENCES ANNOUNCES THIRD QUARTER 2015 FINANCIAL RESULTS

- Product Sales of $8.2 billion -
- Non-GAAP EPS of $3.22 per share -
- Revised 2015 Net Product Sales Guidance -

Foster City, CA, October 27, 2015 - Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results of operations for the third quarter ended September 30, 2015. The financial results that follow represent a year-over-year comparison of third quarter 2015 to the third quarter 2014. Total revenues were $8.3 billion in 2015 compared to $6.0 billion in 2014. Net income was $4.6 billion or $3.06 per diluted share in 2015 compared to $2.7 billion or $1.67 per diluted share in 2014. Non-GAAP net income, which excludes amounts related to acquisition, restructuring, stock-based compensation and other, was $4.8 billion or $3.22 per diluted share in 2015 compared to $3.0 billion or $1.84 per diluted share in 2014.

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
(In millions, except per share amounts)
 
2015
 
2014
 
2015
 
2014
Product sales
 
$
8,211

 
$
5,968

 
$
23,742

 
$
17,252

Royalty, contract and other revenues
 
84

 
74

 
391

 
324

Total revenues
 
$
8,295

 
$
6,042

 
$
24,133

 
$
17,576

 
 
 
 
 
 
 
 
 
Net income attributable to Gilead
 
$
4,600

 
$
2,731

 
$
13,425

 
$
8,614

Non-GAAP net income attributable to Gilead
 
$
4,836

 
$
3,014

 
$
14,285

 
$
9,431

 
 
 
 
 
 
 
 
 
Diluted EPS
 
$
3.06

 
$
1.67

 
$
8.73

 
$
5.18

Non-GAAP diluted EPS
 
$
3.22

 
$
1.84

 
$
9.29

 
$
5.68

Product Sales
Total product sales for the third quarter of 2015 were $8.2 billion compared to $6.0 billion for the third quarter of 2014. Product sales in the U.S. were $5.6 billion compared to $4.2 billion for the third quarter of 2014. In Europe, product sales were $1.7 billion compared to $1.4 billion for the same period in 2014. Sales in other international locations increased to $1.0 billion compared to $327 million in the third quarter of 2014 primarily as a result of the launch of our HCV products in Japan.


- more -

Gilead Sciences, Inc. 333 Lakeside Drive Foster City, CA 94404 USA
www.gilead.com
phone (650) 574-3000 facsimile (650) 578-9264
 


October 27, 2015
 
2

Antiviral Product Sales
Antiviral product sales were $7.7 billion for the third quarter of 2015, compared to $5.5 billion for the third quarter of 2014 primarily due to sales of Harvoni® (ledipasvir 90 mg/sofosbuvir 400 mg), which was approved in the U.S. and Europe in the fourth quarter of 2014, partially offset by a decrease in sales of Sovaldi® (sofosbuvir 400 mg) due primarily to the uptake in Harvoni.

Other Product Sales
Other product sales, which include Letairis® (ambrisentan), Ranexa® (ranolazine) and AmBisome® (amphotericin B liposome for injection), were $509 million for the third quarter of 2015 compared to $424 million for the third quarter of 2014.

Operating Expenses
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
(In millions)
 
2015
 
2014
 
2015
 
2014
Non-GAAP research and development expenses (R&D)
 
$
713

 
$
586

 
$
2,066

 
$
1,686

Non-GAAP selling, general and administrative expenses (SG&A)
 
$
850

 
$
888

 
$
2,211

 
$
1,958

Note:
Non-GAAP R&D and SG&A expenses exclude amounts related to acquisition, restructuring, stock-based compensation and other.

During the third quarter of 2015, compared to the same period in 2014:
Non-GAAP research and development expenses increased primarily due to the progression of Gilead's clinical studies.
Non-GAAP selling, general and administrative expenses decreased primarily due to a cumulative catch-up of the branded prescription drug fee recorded in the same period in 2014, partially offset by higher costs to support Gilead's growth and the geographic expansion in its business.

Cash, Cash Equivalents and Marketable Securities
As of September 30, 2015, Gilead had $25.1 billion of cash, cash equivalents and marketable securities compared to $14.7 billion as of June 30, 2015. This increase was primarily due to the issuance of senior unsecured notes in September 2015 for a total aggregate principal amount of $10.0 billion. During the third quarter of 2015, Gilead generated $4.1 billion in operating cash flow, utilized $3.1 billion to repurchase 28 million shares and paid a cash dividend of $627 million, or $0.43 per share.


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October 27, 2015
 
3

Revised 2015 Full Year Guidance
Gilead updated its full year 2015 guidance as follows:
(In millions, except percentages and per share amounts)
 
Initially Provided
February 3, 2015
Updated
April 30, 2015
Updated
July 28, 2015
Updated October 27, 2015
Net Product Sales
 
$26,000 - $27,000
$28,000 - $29,000
$29,000 - $30,000
$30,000 - $31,000
Non-GAAP*
 
 
 
 
 
Product Gross Margin
 
87% - 90%
87% - 90%
88% - 90%
88% - 90%
R&D expenses
 
$3,000 - $3,300
$3,000 - $3,300
$2,800 - $3,000
$2,800 - $3,000
SG&A expenses
 
$3,000 - $3,300
$3,000 - $3,300
$3,000 - $3,200
$3,000 - $3,200
Effective Tax Rate
 
18.0% - 20.0%
18.0% - 20.0%
17.0% - 18.0%
17.0% - 18.0%
 
 
 
 
 
 
Diluted EPS Impact of Acquisition-Related, Restructuring, Stock-Based Compensation Expenses and Other
 
$0.82 - $0.87
$0.82 - $0.87
$0.82 - $0.87
$0.82 - $0.87
 
 
* Non-GAAP product gross margin, R&D and SG&A expenses and effective tax rate exclude amounts related to acquisition, restructuring, stock-based compensation and other.

Product & Pipeline Updates Announced by Gilead During the Third Quarter of 2015 Include:
Antiviral Program
Announced positive topline results from four international Phase 3 clinical studies (ASTRAL-1, ASTRAL-2, ASTRAL-3 and ASTRAL-4) evaluating a once-daily, fixed-dose combination of sofosbuvir (SOF) with velpatasvir (VEL), an investigational pangenotypic NS5A inhibitor, for the treatment of genotype 1-6 HCV infection. In the ASTRAL-1, ASTRAL-2 and ASTRAL-3 studies, patients with genotype 1-6 HCV infection received 12 weeks of SOF/VEL. Among these patients, 21 percent had compensated cirrhosis and 28 percent had failed prior treatments. In the ASTRAL-4 study, patients with decompensated cirrhosis (Child-Pugh class B) received 12 weeks of SOF/VEL with or without ribavirin, or 24 weeks of SOF/VEL.
Announced that the Japanese Ministry of Health, Labour and Welfare approved Harvoni, the first once-daily single tablet regimen (STR) for the treatment of chronic hepatitis C genotype 1 infection in adults. In Japan, Harvoni is indicated for the suppression of viremia in patients with genotype 1 HCV infection with or without compensated cirrhosis, with a treatment duration of 12 weeks.
Announced that the company submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for an investigational, once-daily STR that combines Gilead’s emtricitabine 200 mg and tenofovir alafenamide (TAF) 25 mg with rilpivirine 25 mg (R/F/TAF) from Janssen Sciences Ireland UC, one of the Janssen Pharmaceutical Companies of Johnson & Johnson, for the treatment of HIV-1 infection in adult and pediatric patients 12 years of age and older. The data submitted in the NDA support the use of R/F/TAF among patients who are HIV treatment-naïve or who are virologically suppressed and want to replace their current antiretroviral treatment regimen.
Announced that the company’s Marketing Authorization Application (MAA) for R/F/TAF was fully validated and under evaluation by the European Medicines Agency (EMA). The data included in the application support the use of R/F/TAF for the treatment of HIV-1 infection in adults and pediatric patients 12 years and older.
Announced that the Committee for Medicinal Products for Human Use, the scientific committee of the EMA, adopted a positive opinion on the company’s MAA for E/C/F/TAF on September 25, 2015.
Announced a Phase 3 study of F/TAF for the treatment of HIV-1 infection met its primary objective. The ongoing study was designed to explore the efficacy and safety of F/TAF-based regimens among virologically suppressed adult patients switching from HIV treatment regimens containing emtricitabine/tenofovir disoproxil fumarate. At week 48, the F/TAF-based regimens and the TDF-based regimens achieved similar rates of virologic suppression based on the proportion of patients with HIV RNA levels (viral load) of less than 50 copies/mL.

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October 27, 2015
 
4

Announced positive results from a Phase 3 clinical study of E/C/F/TAF among virologically suppressed adult patients switching from TDF-containing regimens. The study met its primary endpoint by demonstrating non-inferiority of E/C/F/TAF to the TDF-based regimens at week 48. The study also demonstrated statistical superiority among patients with HIV-1 RNA levels less than 50 copies/mL at week 48 and statistically significant improvements in bone and renal laboratory parameters. These data were presented at the 8th IAS Conference on HIV Pathogenesis, Treatment & Prevention.

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 third quarter 2015 as well as provide a general business update. The live webcast of the call can be accessed at the company's Investors page at www.gilead.com/investors. Please connect to the company's website at least 15 minutes prior to the start of the call to ensure adequate time for any software download that may be required to listen to the webcast. Alternatively, please call 1-877-359-9508 (U.S.) or 1-224-357-2393 (international) and dial the conference ID 52441979 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 October 30, 2015. To access the phone replay, please call 1-855-859-2056 (U.S.) or 1-404-537-3406 (international) and dial the conference ID 52441979.

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.
Non-GAAP Financial Information
Gilead has presented certain financial information in accordance with U.S. generally accepted accounting principles (GAAP) and also on a non-GAAP basis. Management believes this non-GAAP information is useful for investors, when considered 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. A reconciliation between GAAP and non-GAAP financial information is provided in the tables on pages 7 and 8.

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October 27, 2015
 
5

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 2015 financial results; Gilead's ability to sustain growth in revenues for its antiviral and other programs; availability of funding for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations in ADAP purchases driven by federal and state grant cycles which may not mirror patient demand and may cause fluctuations in Gilead's earnings; the possibility of unfavorable results from clinical trials involving sofosbuvir-containing products, including fixed dose combination of SOF/VEL; 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 E/C/F/TAF, F/TAF and R/F/TAF; Gilead's ability to successfully commercialize its products; 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; 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 Sovaldi and Harvoni; 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 the fixed dose regimen of SOF/VEL; the potential for additional austerity measures in European countries that may increase the amount of discount required on Gilead's products; Gilead's ability to complete its share repurchase program due to changes in its stock price, corporate or other market conditions; Gilead’s ability to pay dividends under its dividend program and the risk that its Board of Directors may reduce the amount of the dividend; 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 June 30, 2015 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®, HARVONI®, SOVALDI®, TRUVADA®, STRIBILD®, COMPLERA®, EVIPLERA®, VIREAD®, LETAIRIS®, RANEXA®, AMBISOME®, ZYDELIG®, EMTRIVA®, TYBOST®, HEPSERA®, VITEKTA®, CAYSTON®, VOLIBRIS®, and RAPISCAN®.
 
ATRIPLA® is a registered trademark belonging to Bristol-Myers Squibb & Gilead Sciences, LLC. LEXISCAN® is a registered trademark belonging to Astellas U.S. LLC. MACUGEN® is a registered trademark belonging to Eyetech, Inc. SUSTIVA® is a registered trademark of Bristol-Myers Squibb Pharma Company. TAMIFLU® is a registered trademark belonging to 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).

- more -


October 27, 2015
 
6

GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in millions, except per share amounts)

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2015
 
2014
 
2015
 
2014
 Revenues:
 
 
 
 
 
 
 
 
 Product sales
 
$
8,211

 
$
5,968

 
$
23,742

 
$
17,252

 Royalty, contract and other revenues
 
84

 
74

 
391

 
324

 Total revenues
 
8,295

 
6,042

 
24,133

 
17,576

 Costs and expenses:
 
 
 
 
 
 
 
 
 Cost of goods sold
 
1,064

 
987

 
2,944

 
2,725

 Research and development expenses
 
743

 
630

 
2,257

 
1,809

 Selling, general and administrative expenses
 
903

 
945

 
2,360

 
2,107

 Total costs and expenses
 
2,710

 
2,562

 
7,561

 
6,641

 Income from operations
 
5,585

 
3,480

 
16,572

 
10,935

 Interest expense
 
(165
)
 
(104
)
 
(458
)
 
(282
)
 Other income (expense), net
 
52

 
(5
)
 
108

 
(27
)
 Income before provision for income taxes
 
5,472

 
3,371

 
16,222

 
10,626

 Provision for income taxes
 
880

 
647

 
2,801

 
2,029

 Net income
 
4,592

 
2,724

 
13,421

 
8,597

Net loss attributable to noncontrolling interest
 
(8
)
 
(7
)
 
(4
)
 
(17
)
 Net income attributable to Gilead
 
$
4,600

 
$
2,731

 
$
13,425

 
$
8,614

 Net income per share attributable to Gilead common stockholders - basic
 
$
3.14

 
$
1.80

 
$
9.11

 
$
5.64

 Shares used in per share calculation - basic
 
1,463

 
1,514

 
1,474

 
1,528

 Net income per share attributable to Gilead common stockholders - diluted
 
$
3.06

 
$
1.67

 
$
8.73

 
$
5.18

 Shares used in per share calculation - diluted
 
1,503

 
1,637

 
1,538

 
1,662

Cash dividends declared per share
 
$
0.43

 
$

 
$
0.86

 
$





October 27, 2015
 
7

GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(unaudited)
(in millions, except percentages and per share amounts)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2015
 
2014
 
2015
 
2014
Cost of goods sold reconciliation:
 
 
 
 
 
 
 
 
GAAP cost of goods sold
 
$
1,064

 
$
987

 
$
2,944

 
$
2,725

Stock-based compensation expenses
 
(3
)
 
(3
)
 
(9
)
 
(8
)
Acquisition related-amortization of purchased intangibles
 
(207
)
 
(201
)
 
(620
)
 
(600
)
Other(1)
 
2

 

 
3

 

Non-GAAP cost of goods sold
 
$
856

 
$
783

 
$
2,318

 
$
2,117

 
 
 
 
 
 
 
 
 
Product gross margin reconciliation:
 
 
 
 
 
 
 
 
GAAP product gross margin
 
87.0
 %
 
83.5
%
 
87.6
%
 
84.2
%
Acquisition related-amortization of purchased intangibles
 
2.5
 %
 
3.4
%
 
2.6
%
 
3.5
%
Non-GAAP product gross margin(2)
 
89.6
 %
 
86.9
%
 
90.2
%
 
87.7
%
 
 
 
 
 
 
 
 
 
Research and development expenses reconciliation:
 
 
 
 
 
 
 
 
GAAP research and development expenses
 
$
743

 
$
630

 
$
2,257

 
$
1,809

Stock-based compensation expenses
 
(44
)
 
(40
)
 
(128
)
 
(111
)
Acquisition related expenses
 

 

 
(66
)
 

Other(1)
 
14

 
(4
)
 
3

 
(12
)
Non-GAAP research and development expenses
 
$
713

 
$
586

 
$
2,066

 
$
1,686

 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses reconciliation:
 
 
 
 
 
 
 
 
GAAP selling, general and administrative expenses
 
$
903

 
$
945

 
$
2,360

 
$
2,107

Stock-based compensation expenses
 
(50
)
 
(56
)
 
(148
)
 
(146
)
Restructuring expenses
 

 

 
2

 

Acquisition related-amortization of purchased intangibles
 

 
(1
)
 

 
(3
)
Other(1)
 
(3
)
 

 
(3
)
 

Non-GAAP selling, general and administrative expenses
 
$
850

 
$
888

 
$
2,211

 
$
1,958

 
 
 
 
 
 
 
 
 
Operating margin reconciliation:
 
 
 
 
 
 
 
 
GAAP operating margin
 
67.3
 %
 
57.6
%
 
68.7
%
 
62.2
%
Stock-based compensation expenses
 
1.2
 %
 
1.6
%
 
1.2
%
 
1.5
%
Acquisition related expenses
 
 %
 
%
 
0.3
%
 
%
Acquisition related-amortization of purchased intangibles
 
2.5
 %
 
3.3
%
 
2.6
%
 
3.4
%
Other(1)
 
(0.2
)%
 
0.1
%
 
%
 
0.1
%
Non-GAAP operating margin(2)
 
70.8
 %
 
62.6
%
 
72.7
%
 
67.2
%
 
 
 
 
 
 
 
 
 
Other income (expense) reconciliation:
 
 
 
 
 
 
 
 
GAAP other income (expense), net
 
$
52

 
$
(5
)
 
$
108

 
$
(27
)
Other(1)
 
1

 

 
1

 
(2
)
Non-GAAP other income (expense), net
 
$
53

 
$
(5
)
 
$
109

 
$
(29
)
 
 
 
 
 
 
 
 
 
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



October 27, 2015
 
8

GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION - (Continued)
(unaudited)
(in millions, except percentages and per share amounts)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2015
 
2014
 
2015
 
2014
Effective tax rate reconciliation:
 
 
 
 
 
 
 
 
GAAP effective tax rate
 
16.1
 %
 
19.2
 %
 
17.3
 %
 
19.1
 %
Stock-based compensation expenses
 
0.4
 %
 
 %
 
0.1
 %
 
 %
Acquisition related-amortization of purchased intangibles
 
(0.2
)%
 
(1.0
)%
 
(0.4
)%
 
(0.9
)%
Non-GAAP effective tax rate(1)
 
16.3
 %
 
18.2
 %
 
17.0
 %
 
18.2
 %
 
 
 
 
 
 
 
 
 
Net income attributable to Gilead reconciliation:
 
 
 
 
 
 
 
 
GAAP net income attributable to Gilead
 
$
4,600

 
$
2,731

 
$
13,425

 
$
8,614

Stock-based compensation expenses
 
44

 
81

 
184

 
217

Restructuring expenses
 

 

 
(2
)
 

Acquisition related expenses
 

 

 
66

 

Acquisition related-amortization of purchased intangibles
 
202

 
198

 
605

 
589

Other(2)
 
(10
)
 
4

 
7

 
11

Non-GAAP net income attributable to Gilead
 
$
4,836

 
$
3,014

 
$
14,285

 
$
9,431

 
 
 
 
 
 
 
 
 
Diluted earnings per share reconciliation:
 
 
 
 
 
 
 
 
GAAP diluted earnings per share
 
$
3.06

 
$
1.67

 
$
8.73

 
$
5.18

Stock-based compensation expenses
 
0.03

 
0.05

 
0.12

 
0.13

Acquisition related expenses
 

 

 
0.04

 

Acquisition related-amortization of purchased intangibles
 
0.13

 
0.12

 
0.39

 
0.35

Other(2)
 
(0.01
)
 

 
0.01

 
0.01

Non-GAAP diluted earnings per share(1)
 
$
3.22

 
$
1.84

 
$
9.29

 
$
5.68

 
 
 
 
 
 
 
 
 
Shares used in per share calculation (diluted) reconciliation:
 
 
 
 
 
 
 
 
GAAP shares used in per share calculation (diluted)
 
1,503

 
1,637

 
1,538

 
1,662

Share impact of current stock-based compensation rules
 
(1
)
 
(1
)
 
(1
)
 
(1
)
Non-GAAP shares used in per share calculation (diluted)
 
1,502

 
1,636

 
1,537

 
1,661

 
 
 
 
 
 
 
 
 
Non-GAAP adjustment summary:
 
 
 
 
 
 
 
 
Cost of goods sold adjustments
 
$
208

 
$
204

 
$
626

 
$
608

Research and development expenses adjustments
 
30

 
44

 
191

 
123

Selling, general and administrative expenses adjustments
 
53

 
57

 
149

 
149

Other income (expense) adjustments
 
1

 

 
1

 
(2
)
Total non-GAAP adjustments before tax
 
292

 
305

 
967

 
878

Income tax effect
 
(58
)
 
(23
)
 
(116
)
 
(61
)
Other(2)
 
2

 

 
9

 

Total non-GAAP adjustments after tax attributable to Gilead
 
$
236

 
$
282

 
$
860

 
$
817

 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 (1) Amounts may not sum due to rounding
 (2) Amounts related to consolidation of a contract manufacturer, contingent consideration and/or other individually insignificant amounts



October 27, 2015
 
9

GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in millions)
 
 
September 30,
 
December 31,
 
 
2015
 
2014(1)
 
 
 
 
 
Cash, cash equivalents and marketable securities
 
$
25,114

 
$
11,726

Accounts receivable, net
 
6,105

 
4,635

Inventories
 
1,988

 
1,386

Property, plant and equipment, net
 
2,143

 
1,674

Intangible assets, net
 
10,454

 
11,073

Goodwill
 
1,172

 
1,172

Other assets
 
3,661

 
2,998

Total assets
 
$
50,637

 
$
34,664

 
 
 
 
 
Current liabilities
 
$
9,360

 
$
5,761

Long-term liabilities
 
23,329

 
13,069

Equity component of currently redeemable convertible notes
 
4

 
15

Stockholders’ equity(2)
 
17,944

 
15,819

Total liabilities and stockholders’ equity
 
$
50,637

 
$
34,664

 
 
 
 
 
Notes:
 
 
 
 
(1) Derived from the audited consolidated financial statements as of December 31, 2014.
(2) As of September 30, 2015, there were 1,449 million shares of common stock issued and outstanding.





October 27, 2015
 
10

GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY
(unaudited)
(in millions)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2015
 
2014
 
2015
 
2014
Antiviral products:
 
 
 
 
 
 
 
 
Harvoni – U.S.
 
$
2,541

 
$

 
$
8,383

 
$

Harvoni – Europe
 
532

 
20

 
1,632

 
20

Harvoni – Other International
 
259

 

 
504

 

 
 
3,332

 
20

 
10,519

 
20

 
 
 
 
 
 
 
 
 
Sovaldi – U.S.
 
692

 
2,200

 
1,728

 
7,329

Sovaldi – Europe
 
337

 
523

 
1,342

 
1,087

Sovaldi – Other International
 
437

 
73

 
659

 
135

 
 
1,466

 
2,796

 
3,729

 
8,551

 
 
 
 
 
 
 
 
 
Truvada – U.S.
 
561

 
472

 
1,470

 
1,239

Truvada – Europe
 
268

 
327

 
846

 
988

Truvada – Other International
 
74

 
78

 
207

 
216

 
 
903

 
877

 
2,523

 
2,443

 
 
 
 
 
 
 
 
 
Atripla – U.S.
 
597

 
621

 
1,640

 
1,689

Atripla – Europe
 
161

 
223

 
533

 
694

Atripla – Other International
 
60

 
51

 
161

 
162

 
 
818

 
895

 
2,334

 
2,545

 
 
 
 
 
 
 
 
 
Stribild – U.S.
 
422

 
278

 
1,068

 
695

Stribild – Europe
 
73

 
38

 
199

 
93

Stribild – Other International
 
16

 
11

 
47

 
24

 
 
511

 
327

 
1,314

 
812

 
 
 
 
 
 
 
 
 
Complera / Eviplera – U.S.
 
210

 
183

 
580

 
467

Complera / Eviplera – Europe
 
137

 
134

 
427

 
375

Complera / Eviplera – Other International
 
13

 
13

 
40

 
38

 
 
360

 
330

 
1,047

 
880

 
 
 
 
 
 
 
 
 
Viread – U.S.
 
151

 
122

 
385

 
320

Viread – Europe
 
76

 
87

 
233

 
259

Viread – Other International
 
70

 
66

 
184

 
168

 
 
297

 
275

 
802

 
747

 
 
 
 
 
 
 
 
 
Other Antiviral – U.S.
 
8

 
14

 
30

 
34

Other Antiviral – Europe
 
6

 
9

 
20

 
28

Other Antiviral – Other International
 
1

 
1

 
3

 
5

 
 
15

 
24

 
53

 
67

 
 
 
 
 
 
 
 
 
 Total antiviral products – U.S.
 
5,182

 
3,890

 
15,284

 
11,773

 Total antiviral products – Europe
 
1,590

 
1,361

 
5,232

 
3,544

 Total antiviral products – Other International
 
930

 
293

 
1,805

 
748

 
 
7,702

 
5,544

 
22,321

 
16,065

Other products:
 
 
 
 
 
 
 
 
Letairis
 
181

 
146

 
508

 
414

Ranexa
 
161

 
132

 
419

 
366

AmBisome
 
88

 
98

 
276

 
284

Zydelig
 
36

 
6

 
92

 
6

Other
 
43

 
42

 
126

 
117

 
 
509

 
424

 
1,421

 
1,187

 
 
 
 
 
 
 
 
 
 Total product sales
 
$
8,211

 
$
5,968

 
$
23,742

 
$
17,252