Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results of
operations for the fourth quarter and full year 2014. Total revenues for
the fourth quarter of 2014 were $7.3 billion compared to $3.1 billion
for the fourth quarter of 2013. Net income for the fourth quarter of
2014 was $3.5 billion, or $2.18 per diluted share compared to $791
million, or $0.47 per diluted share for the fourth quarter of 2013.
Non-GAAP net income for the fourth quarter of 2014, which excludes
amounts related to acquisition, restructuring, stock-based compensation
and other, was $3.9 billion, or $2.43 per diluted share compared to $930
million, or $0.55 per diluted share for the fourth quarter of 2013.
Full year 2014 total revenues were $24.9 billion compared to $11.2
billion for 2013. Net income for 2014 was $12.1 billion, or $7.35 per
diluted share, compared to $3.1 billion, or $1.81 per diluted share for
2013. Non-GAAP net income for 2014, which excludes amounts related to
acquisition, restructuring, stock-based compensation and other, was
$13.3 billion, or $8.09 per diluted share compared to $3.5 billion, or
$2.04 per diluted share for 2013.
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
(In millions, except per share amounts)
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Product sales
|
|
$
|
7,222
|
|
|
$
|
3,043
|
|
|
$
|
24,474
|
|
|
$
|
10,804
|
Royalty, contract and other revenues
|
|
92
|
|
|
77
|
|
|
416
|
|
|
398
|
Total revenues
|
|
$
|
7,314
|
|
|
$
|
3,120
|
|
|
$
|
24,890
|
|
|
$
|
11,202
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Gilead
|
|
$
|
3,487
|
|
|
$
|
791
|
|
|
$
|
12,101
|
|
|
$
|
3,075
|
Non-GAAP net income attributable to Gilead
|
|
$
|
3,883
|
|
|
$
|
930
|
|
|
$
|
13,314
|
|
|
$
|
3,451
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
$
|
2.18
|
|
|
$
|
0.47
|
|
|
$
|
7.35
|
|
|
$
|
1.81
|
Non-GAAP diluted EPS
|
|
$
|
2.43
|
|
|
$
|
0.55
|
|
|
$
|
8.09
|
|
|
$
|
2.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Sales
Total product sales for the fourth quarter of 2014 were $7.2 billion
compared to $3.0 billion for the fourth quarter of 2013. In the fourth
quarter, product sales in the U.S. were $5.5 billion compared to $1.9
billion in the fourth quarter of 2013, and in Europe, product sales were
$1.4 billion compared to $871 million in the fourth quarter of 2013.
Total product sales during 2014 were $24.5 billion compared to $10.8
billion in 2013. For 2014, product sales in the U.S. were $18.1 billion
compared to $6.6 billion in 2013, and in Europe, product sales were $5.1
billion compared to $3.3 billion in 2013.
Antiviral Product Sales
Antiviral product sales were $6.7 billion for the fourth quarter of 2014
compared to $2.6 billion for the fourth quarter of 2013. For 2014,
antiviral product sales were $22.8 billion compared to $9.3 billion in
2013. The increase in the quarter and full year was primarily driven by
sales of Sovaldi® (sofosbuvir 400 mg), which launched in
December 2013 in the U.S. and in January 2014 in Europe, and Harvoni®
(ledipasvir 90 mg/sofosbuvir 400 mg), which launched in the U.S. in
October 2014.
Other Product Sales
Other product sales, which include Letairis®, Ranexa®
and AmBisome®, totaled $496 million for the fourth quarter of
2014 compared to $402 million for the fourth quarter of 2013. For 2014,
other product sales were $1.7 billion compared to $1.5 billion in 2013.
Operating Expenses
During the fourth quarter and full year 2014, compared to the same
periods in 2013:
-
Non-GAAP research and development (R&D) expenses increased due to
continued progression of Gilead's product pipeline, in particular in
the oncology and liver disease areas, support of geographic expansion,
up-front fees paid in connection with Gilead's collaboration with ONO
Pharmaceutical Co., Ltd. (ONO) and the purchase of a U.S. Food and
Drug Administration (FDA) priority review voucher.
-
Non-GAAP selling, general and administrative (SG&A) expenses increased
primarily due to Gilead's business growth, including commercial
expansion related to the launches of Sovaldi and Harvoni, and Gilead's
portion of the non-tax deductible branded prescription drug fee for
which accounting guidance was finalized in the third quarter resulting
in a one-time catch up of $460 million in 2014.
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
(In millions)
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Non-GAAP research and development expenses
|
|
$
|
899
|
|
|
$
|
511
|
|
|
$
|
2,585
|
|
|
$
|
1,948
|
Non-GAAP selling, general and administrative expenses
|
|
$
|
799
|
|
|
$
|
471
|
|
|
$
|
2,757
|
|
|
$
|
1,557
|
Note: Non-GAAP R&D and SG&A expenses exclude amounts related to
acquisition, restructuring, stock-based compensation and other.
Cash, Cash Equivalents and Marketable Securities
As of December 31, 2014, Gilead had $11.7 billion of cash, cash
equivalents and marketable securities compared to $2.6 billion as of
December 31, 2013. During 2014, Gilead generated $12.8 billion in
operating cash flow and utilized $5.3 billion to repurchase shares.
Full Year 2015 Guidance
Gilead provided its full year 2015 guidance:
(In millions, except percentages and per share amounts)
|
|
Provided
February 3, 2015
|
Net Product Sales
|
|
$26,000 - $27,000
|
Non-GAAP*
|
|
|
|
Product Gross Margin
|
|
87% - 90%
|
|
R&D
|
|
$3,000 - $3,300
|
|
SG&A
|
|
$3,000 - $3,300
|
|
Effective Tax Rate
|
|
18.0% - 20.0%
|
Diluted EPS Impact Related to Acquisition, Restructuring,
Stock-Based Compensation and Other
|
|
$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.
|
|
Corporate Highlights
-
Announced that Philippe C. Bishop, MD, joined the company as Senior
Vice President, Hematology and Oncology Therapeutics and a member of
Gilead’s executive committee. Dr. Bishop reports to John McHutchison,
MD, Executive Vice President, Clinical Research and has responsibility
for Gilead’s programs in oncology.
Product & Pipeline Updates Announced by Gilead
During the Fourth Quarter of 2014 Include:
Antiviral Program
-
Announcement of expansion to Gilead’s agreement with Janssen R&D
Ireland Limited for the development and commercialization of a new
once-daily single tablet regimen containing Gilead’s tenofovir
alafenamide (TAF) and emtricitabine, and Janssen’s rilpivirine
(RFTAF). The original agreement was established in 2009 for the
development and commercialization of Complera, marketed as Eviplera in
the European Union, which combines tenofovir disoproxil fumarate,
emtricitabine and rilpivirine in a once-daily tablet.
-
Announcement of the European Commission granting marketing
authorization for Harvoni, the first once-daily single tablet regimen
to treat chronic hepatitis C genotype 1 and 4 and subgroups of
genotype 3 infected adults.
-
Presentation of data on sofosbuvir-based regimens in chronic hepatitis
C virus (HCV) patients at the 65th Annual Meeting of the American
Association for the Study of Liver Diseases:
-
Positive results from several Phase 2 and Phase 3 studies
evaluating investigational uses of Harvoni for the treatment of
chronic HCV infection in patients with limited or no treatment
options, including patients with decompensated cirrhosis, patients
with HCV recurrence following a liver transplant and patients who
failed previous treatment with other direct acting antivirals.
-
Positive results from three Phase 2 open-label studies evaluating
the safety and efficacy of an investigational all-oral
pan-genotypic regimen containing sofosbuvir and the
investigational NS5A inhibitor GS-5816 for the treatment of
chronic HCV infection.
-
Submission of a New Drug Application (NDA) to the FDA for an
investigational, once-daily single tablet regimen containing
elvitegravir 150 mg, cobicistat 150 mg, emtricitabine 200 mg and TAF
10 mg (E/C/F/TAF) for the treatment of HIV-1 infection. The data
submitted in the NDA support the use of the regimen among adult and
adolescent treatment-naïve HIV individuals, virologically suppressed
patients who switch regimens and those with renal impairment. If
approved, E/C/F/TAF would be Gilead’s first single tablet regimen to
contain TAF.
-
Announcement of Harvoni approvals by FDA and Health Canada.
Oncology Program
-
Announcement of an exclusive license agreement with ONO for the
development and commercialization of ONO-4059, ONO’s oral Bruton’s
tyrosine kinase inhibitor for the treatment of B-cell malignancies and
other diseases.
-
Announcement of positive results from registrational studies further
describing the duration of response, progression-free survival and
safety profile for Zydelig® (idelalisib) in relapsed
patients with chronic lymphocytic leukemia and two types of indolent
non-Hodgkin lymphoma. The findings were presented at the Annual
Meeting of the American Society of Hematology.
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 and full year 2014 as well as provide 2015 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
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 56363760 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 5, 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 56363760.
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. 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. GAAP (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.
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, cardiovascular and
respiratory 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 RFTAF, the single
tablet regimen of sofosbuvir with GS-5816 and idelalisib for new
indications; 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 NDAs 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; Gilead's ability to successfully
commercialize its products, including Sovaldi, Harvoni, Stribild and
Zydelig; the risk that physicians and patients may not see advantages of
Gilead's 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 demand significant discounts or rebates to include
Gilead's HCV products on formulary; the risk that we may experience
additional pricing pressure in light of the launch of a competitor's all
oral HCV regimen in December 2014; the risk that we will be unable to
advance ONO-4059; Gilead's ability to successfully develop its
respiratory, cardiovascular, oncology and inflammation programs; safety
and efficacy data from clinical studies may not warrant further
development of Gilead's product candidates; the potential for additional
austerity measures in European countries that may increase the amount of
discount required on Gilead's products; 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, 2014 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®, SOVALDI®, STRIBILD®,
COMPLERA®, EVIPLERA®, TRUVADA®, VIREAD®,
EMTRIVA®, TYBOST®, ZYDELIG®, HARVONI®,
HEPSERA®, VITEKTA®, LETAIRIS®,
RANEXA®, CAYSTON®, AMBISOME®, 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).
|
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,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales
|
|
$
|
7,222
|
|
|
$
|
3,043
|
|
|
$
|
24,474
|
|
|
$
|
10,804
|
|
Royalty, contract and other revenues
|
|
92
|
|
|
77
|
|
|
416
|
|
|
398
|
|
Total revenues
|
|
7,314
|
|
|
3,120
|
|
|
24,890
|
|
|
11,202
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
1,063
|
|
|
858
|
|
|
3,788
|
|
|
2,859
|
|
Research and development
|
|
1,045
|
|
|
552
|
|
|
2,854
|
|
|
2,120
|
|
Selling, general and administrative
|
|
876
|
|
|
513
|
|
|
2,983
|
|
|
1,699
|
|
Total costs and expenses
|
|
2,984
|
|
|
1,923
|
|
|
9,625
|
|
|
6,678
|
|
Income from operations
|
|
4,330
|
|
|
1,197
|
|
|
15,265
|
|
|
4,524
|
|
Interest expense
|
|
(130
|
)
|
|
(73
|
)
|
|
(412
|
)
|
|
(307
|
)
|
Other income (expense), net
|
|
30
|
|
|
(11
|
)
|
|
3
|
|
|
(9
|
)
|
Income before provision for income taxes
|
|
4,230
|
|
|
1,113
|
|
|
14,856
|
|
|
4,208
|
|
Provision for income taxes
|
|
768
|
|
|
326
|
|
|
2,797
|
|
|
1,151
|
|
Net income
|
|
3,462
|
|
|
787
|
|
|
12,059
|
|
|
3,057
|
|
Net loss attributable to noncontrolling interest
|
|
25
|
|
|
4
|
|
|
42
|
|
|
18
|
|
Net income attributable to Gilead
|
|
$
|
3,487
|
|
|
$
|
791
|
|
|
$
|
12,101
|
|
|
$
|
3,075
|
|
Net income per share attributable to Gilead common stockholders -
basic
|
|
$
|
2.32
|
|
|
$
|
0.52
|
|
|
$
|
7.95
|
|
|
$
|
2.01
|
|
Net income per share attributable to Gilead common stockholders -
diluted
|
|
$
|
2.18
|
|
|
$
|
0.47
|
|
|
$
|
7.35
|
|
|
$
|
1.81
|
|
Shares used in per share calculation - basic
|
|
1,506
|
|
|
1,534
|
|
|
1,522
|
|
|
1,529
|
|
Shares used in per share calculation - diluted
|
|
1,597
|
|
|
1,694
|
|
|
1,647
|
|
|
1,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Cost of goods sold reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of goods sold
|
|
$
|
1,063
|
|
|
$
|
858
|
|
|
$
|
3,788
|
|
|
$
|
2,859
|
|
Stock-based compensation expenses
|
|
(2
|
)
|
|
(1
|
)
|
|
(10
|
)
|
|
(7
|
)
|
Acquisition related-amortization of purchased intangibles
|
|
(218
|
)
|
|
(80
|
)
|
|
(818
|
)
|
|
(143
|
)
|
Variable interest entity consolidated costs (2)
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
Non-GAAP cost of goods sold
|
|
$
|
847
|
|
|
$
|
777
|
|
|
$
|
2,964
|
|
|
$
|
2,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product gross margin reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP product gross margin
|
|
85.3
|
%
|
|
71.8
|
%
|
|
84.5
|
%
|
|
73.5
|
%
|
Stock-based compensation expenses
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.1
|
%
|
Acquisition related-amortization of purchased intangibles
|
|
3.0
|
%
|
|
2.6
|
%
|
|
3.3
|
%
|
|
1.3
|
%
|
Variable interest entity consolidated costs (2)
|
|
0.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Non-GAAP product gross margin(1)
|
|
88.3
|
%
|
|
74.5
|
%
|
|
87.9
|
%
|
|
74.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and development expenses
|
|
$
|
1,045
|
|
|
$
|
552
|
|
|
$
|
2,854
|
|
|
$
|
2,120
|
|
Stock-based compensation expenses
|
|
(41
|
)
|
|
(30
|
)
|
|
(152
|
)
|
|
(109
|
)
|
Restructuring expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
Acquisition related expenses
|
|
(85
|
)
|
|
—
|
|
|
(85
|
)
|
|
—
|
|
Acquisition related-contingent consideration remeasurement
|
|
(20
|
)
|
|
(11
|
)
|
|
(32
|
)
|
|
(59
|
)
|
Non-GAAP research and development expenses
|
|
$
|
899
|
|
|
$
|
511
|
|
|
$
|
2,585
|
|
|
$
|
1,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling, general and administrative expenses
|
|
$
|
876
|
|
|
$
|
513
|
|
|
$
|
2,983
|
|
|
$
|
1,699
|
|
Stock-based compensation expenses
|
|
(52
|
)
|
|
(42
|
)
|
|
(198
|
)
|
|
(136
|
)
|
Restructuring expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Acquisition related-amortization of purchased intangibles
|
|
(15
|
)
|
|
—
|
|
|
(18
|
)
|
|
(1
|
)
|
Acquisition related-transaction costs
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(7
|
)
|
Variable interest entity consolidated costs (2)
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
Non-GAAP selling, general and administrative expenses
|
|
$
|
799
|
|
|
$
|
471
|
|
|
$
|
2,757
|
|
|
$
|
1,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin
|
|
59.2
|
%
|
|
38.4
|
%
|
|
61.3
|
%
|
|
40.4
|
%
|
Stock-based compensation expenses
|
|
1.3
|
%
|
|
2.3
|
%
|
|
1.4
|
%
|
|
2.3
|
%
|
Restructuring expenses
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Acquisition related expenses/transaction costs
|
|
1.2
|
%
|
|
—
|
%
|
|
0.3
|
%
|
|
0.1
|
%
|
Acquisition related-amortization of purchased intangibles
|
|
3.2
|
%
|
|
2.6
|
%
|
|
3.4
|
%
|
|
1.3
|
%
|
Acquisition related-contingent consideration remeasurement
|
|
0.3
|
%
|
|
0.4
|
%
|
|
0.1
|
%
|
|
0.5
|
%
|
Variable interest entity consolidated costs (2)
|
|
0.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Non-GAAP operating margin(1)
|
|
65.2
|
%
|
|
43.6
|
%
|
|
66.6
|
%
|
|
44.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP other income (expense), net
|
|
$
|
30
|
|
|
$
|
(11
|
)
|
|
$
|
3
|
|
|
$
|
(9
|
)
|
Acquisition related-transaction costs
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
Non-GAAP other income (expense), net
|
|
$
|
30
|
|
|
$
|
(11
|
)
|
|
$
|
1
|
|
|
$
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts may not sum due to rounding
|
(2) Consolidation of a contract manufacturer
|
|
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,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Effective tax rate reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP effective tax rate
|
|
18.2
|
%
|
|
29.3
|
%
|
|
18.8
|
%
|
|
27.3
|
%
|
Restructuring expenses
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Acquisition related-transaction costs
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Acquisition related-amortization of purchased intangibles
|
|
(0.8
|
)%
|
|
(1.5
|
)%
|
|
(0.9
|
)%
|
|
(0.4
|
)%
|
Acquisition related-contingent consideration remeasurement
|
|
(0.1
|
)%
|
|
(0.3
|
)%
|
|
—
|
%
|
|
(0.4
|
)%
|
Non-GAAP effective tax rate(1)
|
|
17.3
|
%
|
|
27.5
|
%
|
|
17.9
|
%
|
|
26.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Gilead reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to Gilead
|
|
$
|
3,487
|
|
|
$
|
791
|
|
|
$
|
12,101
|
|
|
$
|
3,075
|
|
Stock-based compensation expenses
|
|
79
|
|
|
53
|
|
|
296
|
|
|
185
|
|
Restructuring expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
Acquisition related expenses/transaction costs
|
|
71
|
|
|
—
|
|
|
70
|
|
|
7
|
|
Acquisition related-amortization of purchased intangibles
|
|
226
|
|
|
75
|
|
|
815
|
|
|
122
|
|
Acquisition related-contingent consideration remeasurement
|
|
20
|
|
|
11
|
|
|
32
|
|
|
59
|
|
Non-GAAP net income attributable to Gilead
|
|
$
|
3,883
|
|
|
$
|
930
|
|
|
$
|
13,314
|
|
|
$
|
3,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per share
|
|
$
|
2.18
|
|
|
$
|
0.47
|
|
|
$
|
7.35
|
|
|
$
|
1.81
|
|
Stock-based compensation expenses
|
|
0.05
|
|
|
0.03
|
|
|
0.18
|
|
|
0.11
|
|
Restructuring expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Acquisition related expenses/transaction costs
|
|
0.04
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
Acquisition related-amortization of purchased intangibles
|
|
0.14
|
|
|
0.04
|
|
|
0.49
|
|
|
0.07
|
|
Acquisition related-contingent consideration remeasurement
|
|
0.01
|
|
|
0.01
|
|
|
0.02
|
|
|
0.03
|
|
Non-GAAP diluted earnings per share(1)
|
|
$
|
2.43
|
|
|
$
|
0.55
|
|
|
$
|
8.09
|
|
|
$
|
2.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculation (diluted) reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP shares used in per share calculation (diluted)
|
|
1,597
|
|
|
1,694
|
|
|
1,647
|
|
|
1,695
|
|
Share impact of current stock-based compensation rules
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
Non-GAAP shares used in per share calculation (diluted)
|
|
1,596
|
|
|
1,693
|
|
|
1,646
|
|
|
1,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustment summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold adjustments
|
|
$
|
216
|
|
|
$
|
80
|
|
|
$
|
824
|
|
|
$
|
150
|
|
Research and development expenses adjustments
|
|
146
|
|
|
41
|
|
|
269
|
|
|
172
|
|
Selling, general and administrative expenses adjustments
|
|
77
|
|
|
42
|
|
|
226
|
|
|
142
|
|
Other income (expense) adjustments
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
Total non-GAAP adjustments before tax
|
|
439
|
|
|
163
|
|
|
1,317
|
|
|
464
|
|
Income tax effect
|
|
(38
|
)
|
|
(25
|
)
|
|
(99
|
)
|
|
(88
|
)
|
Less: variable interest entity consolidated costs (2)
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
Total non-GAAP adjustments after tax attributable to Gilead
|
|
$
|
396
|
|
|
$
|
138
|
|
|
$
|
1,213
|
|
|
$
|
376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts may not sum due to rounding
|
(2) Consolidation of a contract manufacturer
|
|
GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in millions)
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2014
|
|
|
2013 (1)
|
|
|
|
|
|
|
Cash, cash equivalents and marketable securities
|
|
$
|
11,726
|
|
|
$
|
2,571
|
Accounts receivable, net
|
|
4,635
|
|
|
2,182
|
Inventories
|
|
1,386
|
|
|
1,697
|
Property, plant and equipment, net
|
|
1,674
|
|
|
1,166
|
Intangible assets, net
|
|
11,073
|
|
|
11,900
|
Goodwill
|
|
1,172
|
|
|
1,169
|
Other assets
|
|
2,998
|
|
|
1,894
|
Total assets
|
|
$
|
34,664
|
|
|
$
|
22,579
|
|
|
|
|
|
|
Current liabilities
|
|
$
|
5,618
|
|
|
$
|
6,407
|
Long-term liabilities
|
|
13,212
|
|
|
4,363
|
Equity component of redeemable convertible notes
|
|
15
|
|
|
64
|
Stockholders’ equity(2)
|
|
15,819
|
|
|
11,745
|
Total liabilities and stockholders’ equity
|
|
$
|
34,664
|
|
|
$
|
22,579
|
(1) Derived from the audited consolidated financial
statements as of December 31, 2013. Certain prior period amounts
have been reclassified to conform to the current presentation.
|
(2) As of December 31, 2014, there were 1,499 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,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Antiviral products:
|
|
|
|
|
|
|
|
|
|
|
|
Harvoni – U.S.
|
|
$
|
2,001
|
|
|
$
|
—
|
|
|
$
|
2,001
|
|
|
$
|
—
|
Harvoni – Europe
|
|
83
|
|
|
—
|
|
|
103
|
|
|
—
|
Harvoni – Other International
|
|
23
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
2,107
|
|
|
—
|
|
|
2,127
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Sovaldi – U.S.
|
|
1,178
|
|
|
136
|
|
|
8,507
|
|
|
136
|
Sovaldi – Europe
|
|
459
|
|
|
3
|
|
|
1,546
|
|
|
3
|
Sovaldi – Other International
|
|
95
|
|
|
—
|
|
|
230
|
|
|
—
|
|
|
1,732
|
|
|
139
|
|
|
10,283
|
|
|
139
|
|
|
|
|
|
|
|
|
|
|
|
|
Atripla – U.S.
|
|
668
|
|
|
615
|
|
|
2,357
|
|
|
2,356
|
Atripla – Europe
|
|
194
|
|
|
255
|
|
|
888
|
|
|
1,061
|
Atripla – Other International
|
|
63
|
|
|
63
|
|
|
225
|
|
|
231
|
|
|
925
|
|
|
933
|
|
|
3,470
|
|
|
3,648
|
|
|
|
|
|
|
|
|
|
|
|
|
Truvada – U.S.
|
|
548
|
|
|
416
|
|
|
1,787
|
|
|
1,570
|
Truvada – Europe
|
|
287
|
|
|
325
|
|
|
1,275
|
|
|
1,296
|
Truvada – Other International
|
|
62
|
|
|
73
|
|
|
278
|
|
|
270
|
|
|
897
|
|
|
814
|
|
|
3,340
|
|
|
3,136
|
|
|
|
|
|
|
|
|
|
|
|
|
Stribild – U.S.
|
|
319
|
|
|
187
|
|
|
1,014
|
|
|
510
|
Stribild – Europe
|
|
52
|
|
|
14
|
|
|
145
|
|
|
24
|
Stribild – Other International
|
|
14
|
|
|
3
|
|
|
38
|
|
|
5
|
|
|
385
|
|
|
204
|
|
|
1,197
|
|
|
539
|
|
|
|
|
|
|
|
|
|
|
|
|
Complera / Eviplera – U.S.
|
|
196
|
|
|
152
|
|
|
663
|
|
|
503
|
Complera / Eviplera – Europe
|
|
138
|
|
|
96
|
|
|
513
|
|
|
268
|
Complera / Eviplera – Other International
|
|
14
|
|
|
14
|
|
|
52
|
|
|
39
|
|
|
348
|
|
|
262
|
|
|
1,228
|
|
|
810
|
|
|
|
|
|
|
|
|
|
|
|
|
Viread – U.S.
|
|
164
|
|
|
123
|
|
|
484
|
|
|
428
|
Viread – Europe
|
|
77
|
|
|
92
|
|
|
336
|
|
|
354
|
Viread – Other International
|
|
70
|
|
|
52
|
|
|
238
|
|
|
177
|
|
|
311
|
|
|
267
|
|
|
1,058
|
|
|
959
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Antiviral – U.S.
|
|
12
|
|
|
10
|
|
|
46
|
|
|
57
|
Other Antiviral – Europe
|
|
7
|
|
|
10
|
|
|
35
|
|
|
45
|
Other Antiviral – Other International
|
|
2
|
|
|
2
|
|
|
7
|
|
|
9
|
|
|
21
|
|
|
22
|
|
|
88
|
|
|
111
|
|
|
|
|
|
|
|
|
|
|
|
|
Total antiviral products – U.S.
|
|
5,086
|
|
|
1,639
|
|
|
16,859
|
|
|
5,560
|
Total antiviral products – Europe
|
|
1,297
|
|
|
795
|
|
|
4,841
|
|
|
3,051
|
Total antiviral products – Other International
|
|
343
|
|
|
207
|
|
|
1,091
|
|
|
731
|
|
|
6,726
|
|
|
2,641
|
|
|
22,791
|
|
|
9,342
|
|
|
|
|
|
|
|
|
|
|
|
|
Other products:
|
|
|
|
|
|
|
|
|
|
|
|
Letairis
|
|
181
|
|
|
139
|
|
|
595
|
|
|
520
|
Ranexa
|
|
144
|
|
|
130
|
|
|
510
|
|
|
449
|
AmBisome
|
|
104
|
|
|
94
|
|
|
388
|
|
|
352
|
Zydelig
|
|
17
|
|
|
—
|
|
|
23
|
|
|
—
|
Other
|
|
50
|
|
|
39
|
|
|
167
|
|
|
141
|
|
|
496
|
|
|
402
|
|
|
1,683
|
|
|
1,462
|
|
|
|
|
|
|
|
|
|
|
|
|
Total product sales
|
|
$
|
7,222
|
|
|
$
|
3,043
|
|
|
$
|
24,474
|
|
|
$
|
10,804
|
Copyright Business Wire 2015