Gilead Sciences Announces Fourth Quarter and Full Year 2013 Financial Results

Gilead Sciences Announces Fourth Quarter and Full Year 2013 Financial Results 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 America, Europe 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

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