Gilead Sciences Announces Fourth Quarter and Full Year 2013 Financial Results

Gilead Sciences Announces Fourth Quarter and Full Year 2013 Financial ResultsDownload PDF Download PDF

- Fourth Quarter Product Sales of $3.04 billion, Up 21 percent Year over Year -

- Full Year 2013 Product Sales of $10.80 billion, Up 15 percent Year over Year -

FOSTER CITY, Calif.--(BUSINESS WIRE)--Feb. 4, 2014-- Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results of operations for the fourth quarter and full year 2013. Total revenues for the fourth quarter of 2013 increased 21 percent to $3.12 billion, from $2.59 billion for the fourth quarter of 2012. Net income for the fourth quarter of 2013 was $791.4 million, or $0.47 per diluted share compared to $762.5 million, or $0.47 per diluted share for the fourth quarter of 2012. Non-GAAP net income for the fourth quarter of 2013, which excludes acquisition-related, restructuring and stock-based compensation expenses, was $929.8 million, or $0.55 per diluted share compared to $823.4 million, or $0.50 per diluted share for the fourth quarter of 2012.

Full year 2013 total revenues were $11.20 billion, up 15 percent compared to $9.70 billion for 2012. Net income for 2013 was $3.07 billion, or $1.81 per diluted share, compared to $2.59 billion, or $1.64 per diluted share for 2012. Non-GAAP net income for 2013, which excludes acquisition-related, restructuring and stock-based compensation expenses, was $3.45 billion, or $2.04 per diluted share, compared to $3.08 billion, or $1.95 per diluted share for 2012.

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
(In thousands, except per share amounts)   2013   2012   2013   2012
Product sales   $ 3,043,190     $ 2,510,811     $ 10,803,695     $ 9,398,371
Royalty, contract and other revenues   76,636     77,474     397,993     304,146
Total revenues   $ 3,119,826     $ 2,588,285     $ 11,201,688     $ 9,702,517
                 
Net income attributable to Gilead   $ 791,411     $ 762,541     $ 3,074,808     $ 2,591,566
Non-GAAP net income attributable to Gilead   $ 929,807     $ 823,434     $ 3,450,556     $ 3,084,040
                 
Diluted EPS   $ 0.47     $ 0.47     $ 1.81     $ 1.64
Non-GAAP diluted EPS   $ 0.55     $ 0.50     $ 2.04     $ 1.95
                               

Product Sales

Product sales increased 21 percent to $3.04 billion for the fourth quarter of 2013 compared to $2.51 billion for the fourth quarter of 2012. For 2013, product sales increased 15 percent to $10.80 billion compared to $9.40 billion in 2012. Significantly contributing to the increase were sales of Stribild® (elvitegravir 150 mg/cobicistat 150 mg/emtricitabine 200 mg/tenofovir disoproxil fumarate 300 mg), Complera®/Eviplera® (emtricitabine 200 mg/rilpivirine 25 mg/tenofovir disoproxil fumarate 300 mg) and Gilead's newest product, Sovaldi® (sofosbuvir) 400 mg tablets, which launched in December 2013. Sales of Sovaldi were driven by initial inventory stocking, patient demand and a clinical trial order.

Antiviral Product Sales

Antiviral product sales increased 22 percent to $2.64 billion for the fourth quarter of 2013, compared to $2.17 billion for the fourth quarter of 2012, reflecting sales growth of 30 percent in the U.S. and 7 percent in Europe. For 2013, antiviral product sales increased 15 percent to $9.34 billion from $8.14 billion in 2012, reflecting sales growth of 19 percent in the U.S. and 6 percent in Europe. In December 2013, the U.S. Food and Drug Administration (FDA) approved Sovaldi in combination with other agents for the treatment of chronic hepatitis C virus (HCV).

    Three Months Ended       Twelve Months Ended    
    December 31,       December 31,    
(In thousands, except percentages)   2013   2012   % Change   2013   2012   % Change
Antiviral product sales   $ 2,639,827     $ 2,167,868     22 %   $ 9,339,879     $ 8,141,790     15 %
Atripla   933,646     917,486     2 %   3,648,496     3,574,483     2 %
Truvada   814,098     832,724     (2 )%   3,135,771     3,181,110     (1 )%
Viread   266,894     226,681     18 %   958,969     848,697     13 %
Complera/Eviplera   261,844     117,814     122 %   809,452     342,200     137 %
Stribild   203,761     40,025     409 %   539,256     57,536     837 %
Sovaldi   139,435             139,435          
                                     

Cardiovascular Product Sales

Cardiovascular product sales increased 25 percent to $268.5 million for the fourth quarter of 2013 compared to the same period in 2012. Cardiovascular product sales increased 24 percent to $968.6 million in 2013 compared to 2012.

    Three Months Ended       Twelve Months Ended    
    December 31,       December 31,    
(In thousands, except percentages)   2013   2012   % Change   2013   2012   % Change
Cardiovascular product sales   $ 268,456     $ 215,205     25 %   $ 968,590     $ 783,003     24 %
Letairis   138,530     116,078     19 %   519,966     410,054     27 %
Ranexa   129,926     99,127     31 %   448,624     372,949     20 %
                                     

Operating Expenses and Other

During the fourth quarter and full year 2013, compared to the same periods in 2012:

  • Non-GAAP research and development (R&D) expenses increased due primarily to the progression of Gilead's clinical studies, particularly in oncology, liver diseases and HIV;
  • Non-GAAP selling, general and administrative (SG&A) expenses increased due primarily to the ongoing growth and expansion of Gilead's business, including commercial expansion related to the launch of Sovaldi; and
  • Non-GAAP interest expense decreased due to debt repayments.
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
(In thousands, except percentages)   2013   2012   2013   2012
Non-GAAP research and development expenses   $ 511,385     $ 409,331     $ 1,947,667     $ 1,495,620  
Non-GAAP selling, general and administrative expenses   $ 470,965     $ 332,263     $ 1,557,206     $ 1,225,940  
                 
Non-GAAP interest expense   $ (73,150 )   $ (85,906 )   $ (306,894 )   $ (353,583 )

Note: Non-GAAP R&D, SG&A and interest expenses exclude the impact of acquisition-related, restructuring and stock-based compensation expenses, where applicable.

Income Taxes

The effective tax rate for 2013 decreased to 27.3 percent from 28.7 percent for 2012 and the non-GAAP effective tax rate for 2013 decreased to 26.5 percent from 26.8 percent for 2012. The decreases were due primarily to the retroactive extension of the federal R&D tax credit for 2012 and 2013 in January 2013, partially offset by increased R&D investments.

Net Foreign Currency Exchange Impact

The net foreign currency exchange impact on fourth quarter 2013 product sales and pre-tax earnings was an unfavorable $19.0 million and $26.6 million, respectively, compared to the fourth quarter of 2012. For 2013, the net foreign currency exchange impact on product sales and pre-tax earnings was an unfavorable $64.8 million and $62.6 million, respectively, compared to 2012.

Cash, Cash Equivalents and Marketable Securities

As of December 31, 2013, Gilead had $2.57 billion of cash, cash equivalents and marketable securities compared to $2.58 billion as of December 31, 2012. During 2013, Gilead generated $3.11 billion in operating cash flow.

Full Year 2014 Guidance

Gilead provided its full year 2014 guidance, which excludes the impact of Sovaldi product sales:

(In millions, except percentages and per share amounts)   Provided

February 4, 2014

Net Product Sales   $11,300 - $11,500
Non-GAAP*    
  Product Gross Margin   75% - 77%
  R&D   $2,200 - $2,300
  SG&A   $2,100 - $2,200
  Effective Tax Rate   28% - 29%
       
Diluted EPS Impact of Acquisition-Related, Restructuring and Stock-Based Compensation Expenses   $0.63 - $0.66
       

* Non-GAAP product gross margin, expense and effective tax rate exclude the impact of acquisition-related, restructuring and stock-based compensation expenses, where applicable.

Recent Product & Pipeline Updates Announced by Gilead Include:

Antiviral Program

  • Presentation of positive 144-week efficacy and safety results from two pivotal Phase 3 studies (Studies 102 and 103) evaluating the once-daily single tablet regimen Stribild among treatment-naïve patients with HIV-1 infection at the 14th European AIDS Clinical Society Conference.
  • Presentation of data on sofosbuvir-based regimens in chronic HCV patients at the 64th Annual Meeting of the American Association for the Study of Liver Diseases included:
    • Positive results from two studies, the Phase 3 VALENCE study and the Phase 2 LONESTAR-2 study, evaluating sofosbuvir for the treatment of chronic HCV infection among patients infected with genotype 2 and 3 HCV.
    • Positive results from a Phase 3 study, PHOTON-1, evaluating sofosbuvir for the treatment of HCV infection among patients co-infected with HIV.
    • Positive results from two Phase 2 studies evaluating sofosbuvir plus ribavirin (RBV) for both the prevention and treatment of recurrent HCV infection among patients who underwent liver transplantation.
  • Granting of marketing authorization by the European Commission for Vitekta® (elvitegravir 85 mg and 150 mg), an integrase inhibitor for the treatment of HIV-1 infection in adults without known mutations associated with resistance to elvitegravir.
  • Approval by the FDA for Sovaldi, a once-daily oral nucleotide analog polymerase inhibitor for the treatment of HCV as a component of a combination antiviral treatment regimen. Sovaldi's efficacy has been established in subjects with HCV genotypes 1, 2, 3 or 4 infection, including those with hepatocellular carcinoma meeting Milan criteria (awaiting liver transplantation) and those with HCV/HIV-1 co-infection.
  • Approval by the FDA and European Commission of Complera/Eviplera for use in certain virologically-suppressed (HIV RNA <50 copies/mL) adult patients on a stable antiretroviral regimen in order to replace their current antiretroviral treatment regimen.
  • Approval by Health Canada for Sovaldi.
  • Positive interim results from three Phase 3 clinical studies (ION-1, ION-2 and ION-3) evaluating the once-daily fixed-dose combination of sofosbuvir and our NS5A inhibitor ledipasvir, with and without RBV, for the treatment of genotype 1 HCV infection.

Oncology Program

  • FDA accepted for review Gilead's new drug application (NDA) for idelalisib, a targeted, oral inhibitor of PI3K delta, for the treatment of refractory indolent non-Hodgkin's lymphoma (iNHL) and set a target review date of September 11, 2014 under the Prescription Drug User Fee Act. On December 6, a second NDA was submitted for idelalisib for the treatment of chronic lymphocytic leukemia (CLL). In addition, Gilead submitted Marketing Authorisation Applications for both iNHL and CLL in Europe.
  • Presentation of 11 abstracts on clinical and preclinical data from studies of idelalisib, which is currently under review by the FDA and European Medicines Agency for treatment of refractory iNHL and previously treated CLL, as well as for GS-9973, GS-9820 and momelotinib, during the Annual Meeting of the American Society of Hematology.

    Select presentations on idelalisib, Gilead's investigational, targeted, oral inhibitor of PI3K delta included:
    • The Phase 3 study (Study 116) for previously-treated CLL patients who are not fit for chemotherapy, which was stopped early based on a recommendation by the Data Monitoring Committee. The recommendation followed a predefined interim analysis showing highly statistically significant efficacy for the primary endpoint of progression-free survival in patients receiving idelalisib plus rituximab compared to those receiving rituximab alone.
    • Positive results of the Phase 2 study (Study 101-09) for the treatment of patients with iNHL that is refractory (non-responsive) to rituximab and to alkylating-agent-containing chemotherapy.
    Clinical data presented on other oral investigational compounds in development for the treatment of hematologic malignancies included:
    • Updated safety and efficacy results from a Phase 1/2 study evaluating momelotinib, a selective inhibitor of JAK1 and JAK2, in myelofibrosis.
    • Positive interim results from the single-arm, open-label Phase 2 study evaluating GS-9973, an investigational oral inhibitor of spleen tyrosine kinase (Syk), for the treatment of patients with relapsed or refractory CLL, iNHL and other lymphoid malignancies.
    • Data from a Phase 1b dose escalation monotherapy study evaluating GS-9820, a second-generation inhibitor of PI3K delta for recurrent CLL or iNHL.

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 2013 as well as provide 2014 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 1-877-280-4958 (U.S.) or 1-857-244-7315 (international) and dial the participant passcode 69557162 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 7, 2014. To access the phone replay, please call 1-888-286-8010 (U.S.) or 1-617-801-6888 (international) and dial the participant passcode 19549090.

About Gilead

Gilead Sciences is a biopharmaceutical company that discovers, develops and commercializes innovative therapeutics in areas of unmet medical need. The company's mission is to advance the care of patients suffering from life-threatening diseases worldwide. Headquartered in Foster City, California, Gilead has operations in North and South AmericaEurope and Asia Pacific.

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 U.S. GAAP. A reconciliation between GAAP and non-GAAP financial information is provided in the table on pages 8 and 9.

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 2014 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 sofosbuvir and the fixed-dose combination of sofosbuvir/ledipasvir; 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, including the fixed-dose combination of ledipasvir/sofosbuvir for the treatment of HCV; Gilead's ability to receive regulatory approvals in a timely manner or at all, for new and current products, including idelalisib for iNHL and CLL; Gilead's ability to successfully commercialize its products, including Sovaldi, Stribild and Tybost; the risk that estimates of patients with HCV or anticipated patient demand may not be accurate; Gilead's ability to successfully develop its respiratory, cardiovascular and oncology/inflammation programs; safety and efficacy data from clinical studies may not warrant further development of Gilead's product candidates, including the fixed-dose combination of ledipasvir/sofosbuvir, TAF and idelalisib; 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, 2013 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®, STRIBILD®, COMPLERA®, EVIPLERA®, TRUVADA®, VIREAD®, EMTRIVA®, TYBOST®, SOVALDI®, HEPSERA®, VITEKTA®, LETAIRIS®, RANEXA®, CAYSTON®, AMBISOME®, VISTIDE®, 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 thousands, except per share amounts)

         
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
    2013   2012   2013   2012
Revenues:                
Product sales   $ 3,043,190     $ 2,510,811     $ 10,803,695     $ 9,398,371  
Royalty, contract and other revenues   76,636     77,474     397,993     304,146  
Total revenues   3,119,826     2,588,285     11,201,688     9,702,517  
Costs and expenses:                
Cost of goods sold   857,523     675,818     2,858,502     2,471,363  
Research and development   551,978     439,659     2,119,756     1,759,945  
Selling, general and administrative   513,284     365,825     1,699,431     1,461,034  
Total costs and expenses   1,922,785     1,481,302     6,677,689     5,692,342  
Income from operations   1,197,041     1,106,983     4,523,999     4,010,175  
Interest expense   (73,150 )   (85,906 )   (306,894 )   (360,916 )
Other income (expense), net   (11,108 )   1,386     (8,886 )   (37,279 )
Income before provision for income taxes   1,112,783     1,022,463     4,208,219     3,611,980  
Provision for income taxes   326,041     263,504     1,150,933     1,038,381  
Net income   786,742     758,959     3,057,286     2,573,599  
Net loss attributable to noncontrolling interest   4,669     3,582     17,522     17,967  
Net income attributable to Gilead   $ 791,411     $ 762,541     $ 3,074,808     $ 2,591,566  
Net income per share attributable to Gilead common stockholders - basic   $ 0.52     $ 0.50     $ 2.01     $ 1.71  
Net income per share attributable to Gilead common stockholders - diluted   $ 0.47     $ 0.47     $ 1.81     $ 1.64  
Shares used in per share calculation - basic   1,533,882     1,517,208     1,528,620     1,514,621  
Shares used in per share calculation - diluted   1,694,212     1,636,939     1,694,747     1,582,549  
                         

GILEAD SCIENCES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(unaudited)

(in thousands, except percentages and per share amounts)

         
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
    2013   2012   2013   2012
Cost of goods sold reconciliation:                
GAAP cost of goods sold   $ 857,523     $ 675,818     $ 2,858,502     $ 2,471,363  
Stock-based compensation expenses   (513 )   (977 )   (6,809 )   (7,061 )
Acquisition related-amortization of purchased intangibles   (79,526 )   (15,837 )   (143,318 )  

(63,346

)
Non-GAAP cost of goods sold   $ 777,484     $ 659,004     $ 2,708,375     $ 2,400,956  
                 
Product gross margin reconciliation:                
GAAP product gross margin   71.8 %   73.2 %   73.5 %   73.8 %
Stock-based compensation expenses   0.0 %   0.0 %   0.1 %   0.1 %
Acquisition related-amortization of purchased intangibles   2.6 %   0.6 %   1.3 %   0.7 %
Non-GAAP product gross margin(1)   74.5 %   73.8 %   74.9 %   74.5 %
                 
Research and development expenses reconciliation:                
GAAP research and development expenses   $ 551,978     $ 439,659     $ 2,119,756     $ 1,759,945  
Stock-based compensation expenses   (29,511 )   (24,886 )   (108,772 )   (187,100 )
Restructuring expenses   176     (89 )   (4,617 )   (7,411 )
Acquisition related-transaction costs               (345 )
Acquisition related-contingent consideration remeasurement   (11,258 )   (5,353 )   (58,700 )   (69,469 )
Non-GAAP research and development expenses   $ 511,385     $ 409,331     $ 1,947,667     $ 1,495,620  
                 
Selling, general and administrative expenses reconciliation:                
GAAP selling, general and administrative expenses   $ 513,284     $ 365,825     $ 1,699,431     $ 1,461,034  
Stock-based compensation expenses   (41,894 )   (31,264 )   (136,630 )   (208,501 )
Restructuring expenses   (144 )   63     2,390     (13,136 )
Acquisition related-transaction costs       (1,236 )   (6,860 )   (12,332 )
Acquisition related-amortization of purchased intangibles   (281 )   (1,125 )   (1,125 )   (1,125 )
Non-GAAP selling, general and administrative expenses   $ 470,965     $ 332,263     $ 1,557,206     $ 1,225,940  
                 
Operating margin reconciliation:                
GAAP operating margin   38.4 %   42.8 %   40.4 %   41.3 %
Stock-based compensation expenses   2.3 %   2.2 %   2.3 %   4.2 %
Restructuring expenses   (0.0 )%   0.0 %   0.0 %   0.2 %
Acquisition related-transaction costs   %   0.0 %   0.1 %   0.1 %
Acquisition related-amortization of purchased intangibles   2.6 %   0.7 %   1.3 %   0.7 %
Acquisition related-contingent consideration remeasurement   0.4 %   0.2 %   0.5 %   0.7 %
Non-GAAP operating margin(1)   43.6 %   45.9 %   44.5 %   47.2 %
                 
Interest expense reconciliation:                
GAAP interest expense   $ (73,150 )   $ (85,906 )   $ (306,894 )   $ (360,916 )
Acquisition related-transaction costs               7,333  
Non-GAAP interest expense   $ (73,150 )   $ (85,906 )   $ (306,894 )   $ (353,583 )
                 
Net income attributable to Gilead reconciliation:                
GAAP net income attributable to Gilead, net of tax   $ 791,411     $ 762,541     $ 3,074,808     $ 2,591,566  
Stock-based compensation expenses   52,967     42,423     185,302     346,705  
Restructuring expenses   (40 )   101     3,008     15,038  
Acquisition related-transaction costs       981     6,860     14,646  
Acquisition related-amortization of purchased intangibles   74,211     12,605     121,878     47,186  
Acquisition related-contingent consideration remeasurement   11,258     4,783     58,700     68,899  
Non-GAAP net income attributable to Gilead, net of tax   $ 929,807     $ 823,434     $ 3,450,556     $ 3,084,040  
                                 

GILEAD SCIENCES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION - (Continued)

(unaudited)

(in thousands, except percentages and per share amounts)

         
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
    2013   2012   2013   2012
Diluted earnings per share reconciliation:                
GAAP diluted earnings per share   $ 0.47     $ 0.47     $ 1.81     $ 1.64  
Stock-based compensation expenses   0.03     0.03     0.11     0.22  
Restructuring expenses   (0.00 )   0.00     0.00     0.01  
Acquisition related-transaction costs       0.00     0.00     0.01  
Acquisition related-amortization of purchased intangibles   0.04     0.01     0.07     0.03  
Acquisition related-contingent consideration remeasurement   0.01     0.00     0.03     0.04  
Non-GAAP diluted earnings per share(1)   $ 0.55     $ 0.50     $ 2.04     $ 1.95  
                 
Shares used in per share calculation (diluted) reconciliation:                
GAAP shares used in per share calculation (diluted)   1,694,212     1,636,939     1,694,747     1,582,549  
Share impact of current stock-based compensation rules   (1,002 )   (1,965 )   (1,190 )   (2,522 )
Non-GAAP shares used in per share calculation (diluted)   1,693,210     1,634,974     1,693,557     1,580,027  
                 
Non-GAAP adjustment summary:                
Cost of goods sold adjustments   $ 80,039     $ 16,814     $ 150,127     $ 70,407  
Research and development expenses adjustments   40,593     30,328     172,089     264,325  
Selling, general and administrative expenses adjustments   42,319     33,562     142,225     235,094  
Interest expense adjustments               7,333  
Total non-GAAP adjustments before tax   162,951     80,704     464,441     577,159  
Income tax effect   (24,555 )   (19,811 )   (88,693 )   (84,685 )
Total non-GAAP adjustments after tax   $ 138,396     $ 60,893     $ 375,748     $ 492,474  
                 
(1) Amounts may not sum due to rounding
 

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

         
    December 31,   December 31,
    2013   2012(1)
    (unaudited)    
Cash, cash equivalents and marketable securities   $ 2,570,590     $ 2,582,086
Accounts receivable, net   2,100,286     1,751,388
Inventories   2,055,788     1,744,982
Property, plant and equipment, net   1,166,181     1,100,259
Intangible assets, net   11,900,106     11,736,393
Goodwill   1,169,023     1,060,919
Other assets   1,534,811     1,263,811
Total assets   $ 22,496,785     $ 21,239,838
         
Current liabilities   $ 6,325,528     $ 4,237,897
Long-term liabilities   4,362,925     7,451,072

Equity component of redeemable convertible notes

  63,831     7,147
Stockholders' equity(2)   11,744,501     9,543,722
Total liabilities and stockholders' equity   $ 22,496,785     $ 21,239,838
(1) Derived from the audited consolidated financial statements as of December 31, 2012.
(2) As of December 31, 2013, there were 1,534,414 shares of common stock issued and outstanding.
 

GILEAD SCIENCES, INC.

PRODUCT SALES SUMMARY

(unaudited)

(in thousands)

         
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
    2013   2012   2013   2012
Antiviral products:                
Atripla – U.S.   $ 615,281     $ 579,979     $ 2,355,970     $ 2,252,655
Atripla – Europe   255,891     281,476     1,061,739     1,102,570
Atripla – Other International   62,474     56,031     230,787     219,258
    933,646     917,486     3,648,496     3,574,483
                 
Truvada – U.S.   416,502     431,715     1,570,077     1,612,506
Truvada – Europe   324,594     334,907     1,295,576     1,315,533
Truvada – Other International   73,002     66,102     270,118     253,071
    814,098     832,724     3,135,771     3,181,110
                 
Viread – U.S.   122,879     105,192     428,190     387,929
Viread – Europe   91,362     84,585     353,787     335,540
Viread – Other International   52,653     36,904     176,992     125,228
    266,894     226,681     958,969     848,697
                 
Complera / Eviplera – U.S.   152,818     84,328     503,190     280,070
Complera / Eviplera – Europe   95,278     27,932     267,566     52,703
Complera / Eviplera – Other International   13,748     5,554     38,696     9,427
    261,844     117,814     809,452     342,200
                 
Stribild – U.S.   186,310     40,022     509,949     57,533
Stribild – Europe   14,469         24,228    
Stribild – Other International   2,982     3     5,079     3
    203,761     40,025     539,256     57,536
                 
Sovaldi – U.S.   136,364         136,364    
Sovaldi – Europe   3,071         3,071    
    139,435         139,435    
                 
Hepsera – U.S.   2,776     9,766     34,175     43,362
Hepsera – Europe   8,475     12,907     38,726     54,291
Hepsera – Other International   1,649     2,835     8,194     10,662
    12,900     25,508     81,095     108,315
                 
Emtriva – U.S.   5,524     4,951     19,948     18,531
Emtriva – Europe   1,569     1,544     6,464     6,713
Emtriva – Other International   156     1,135     993     4,205
    7,249     7,630     27,405     29,449
                 
Total antiviral products – U.S.   1,638,454     1,255,953     5,557,863     4,652,586
Total antiviral products – Europe   794,709     743,351     3,051,157     2,867,350
Total antiviral products – Other International   206,664     168,564     730,859     621,854
    2,639,827     2,167,868     9,339,879     8,141,790
                 
Letairis   138,530     116,078     519,966     410,054
Ranexa   129,926     99,127     448,624     372,949
AmBisome   93,603     90,781     351,827     346,646
Other products   41,304     36,957     143,399     126,932
    403,363     342,943     1,463,816     1,256,581
                 
Total product sales   $ 3,043,190     $ 2,510,811     $ 10,803,695     $ 9,398,371

 

Source: Gilead Sciences, Inc.

Gilead Sciences, Inc.
Investors
Robin Washington, 650-522-5688
Patrick O'Brien, 650-522-1936
Media
Amy Flood, 650-522-5643

- See more at: http://investors.gilead.com/phoenix.zhtml?c=69964&p=irol-newsArticle&ID=1896819&highlight=#sthash.8W0DXJey.dpuf

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