Gilead Sciences Announces First Quarter 2023 Financial Results
Product Sales Excluding Veklury Increased
Biktarvy Sales Increased
Oncology Sales Increased
“Gilead’s track record of strong commercial and clinical execution continued through the first quarter of 2023. A
First Quarter 2023 Financial Results
-
Total first quarter 2023 revenue decreased
4% to compared to the same period in 2022, due to lower Veklury® (remdesivir) sales, partially offset by increased sales in HIV and Oncology.$6.4 billion -
Diluted Earnings Per Share (“EPS”) increased to
for the first quarter of 2023 compared to$0.80 for the same period in 2022, mainly driven by the following items net of their related tax effect: a$0.02 in-process research and development ("IPR&D”) impairment recorded in the first quarter of 2022, which did not repeat in 2023, partially offset by higher operating expenses, including higher acquired IPR&D expense and lower revenues in 2023.$2.7 billion -
Non-GAAP diluted EPS decreased to
for the first quarter of 2023 compared to$1.37 for the same period in 2022, primarily driven by the following items net of their related tax effect: higher operating expenses, including higher acquired IPR&D expense, and lower revenues in 2023.$2.12 -
As of
March 31, 2023 , Gilead had of cash, cash equivalents and marketable debt securities, down from$7.2 billion as of$7.6 billion December 31, 2022 . -
During the first quarter of 2023, Gilead generated
in operating cash flow.$1.7 billion -
During the first quarter of 2023, Gilead paid dividends of
and repurchased$969 million of common stock.$400 million
Product Sales Performance
Total first quarter 2023 product sales decreased
HIV product sales increased
-
Biktarvy® (bictegravir 50mg/emtricitabine 200mg (“FTC”)/tenofovir alafenamide 25mg (“TAF”)) sales increased
24% year-over-year in the first quarter of 2023, reflecting higher demand, as well as favorable pricing and inventory dynamics. -
Descovy® (
FTC 200mg/TAF 25mg) sales increased20% year-over-year in the first quarter of 2023, primarily driven by higher demand and favorable pricing dynamics.
The Liver Disease portfolio sales, which includes chronic hepatitis C virus (“HCV”), chronic hepatitis B virus (“HBV”) and chronic hepatitis delta virus (“HDV”), increased
-
Yescarta® (axicabtagene ciloleucel) sales increased
70% to in the first quarter of 2023, primarily driven by increased demand in relapsed or refractory (“R/R”) large B-cell lymphoma (“LBCL”).$359 million -
Tecartus® (brexucabtagene autoleucel) sales increased
40% to in the first quarter of 2023, primarily driven by increased demand in R/R mantle cell lymphoma and R/R adult acute lymphoblastic leukemia (“ALL”).$89 million
Trodelvy sales increased by
Veklury sales decreased by
First Quarter 2023 Product Gross Margin, Operating Expenses and Effective Tax Rate
-
Product gross margin was
77.8% for the first quarter of 2023 compared to78.2% for the same period in 2022. Non-GAAP product gross margin was86.2% for the first quarter of 2023 compared to87.4% in the same period in 2022. -
Research and development (“R&D”) expenses and non-GAAP R&D expenses for the first quarter of 2023 were
, compared to$1.4 billion in the same period in 2022. The increases in GAAP and non-GAAP R&D expenses were primarily driven by increased clinical activities.$1.2 billion -
Acquired IPR&D expenses for the first quarter of 2023 were
compared to$481 million in the same period in 2022, primarily driven by the acquisition of$8 million Tmunity Therapeutics Inc. (“Tmunity”), as well as upfront and milestone payments related to the collaborations with Arcellx, Inc. (“Arcellx”) and Nurix Therapeutics, Inc. (“Nurix”). -
Selling, general and administrative (“SG&A”) expenses and non-GAAP SG&A expenses for the first quarter of 2023 were
, compared to$1.3 billion in the same period in 2022. The increases in GAAP and non-GAAP SG&A expenses were primarily due to Oncology commercial expansion and investments, higher Branded Prescription Drug fee, as well as higher corporate activities.$1.1 billion -
The effective tax rate (“ETR”) for the first quarter of 2023 was
24.3% compared to107.9% for the same period in 2022. The decrease in ETR was primarily due to a IPR&D impairment taken in the first quarter of 2022 related to assets acquired by Gilead from Immunomedics Inc. that did not repeat in 2023. Non-GAAP ETR for the first quarter of 2023 was$2.7 billion 18.9% compared to18.4% for the same period in 2022.
Guidance and Outlook
For the full-year, Gilead expects:
-
Total product sales between
and$26.0 billion , unchanged from prior guidance.$26.5 billion -
Total product sales, excluding Veklury, between
and$24.0 billion , unchanged from prior guidance.$24.5 billion -
Total Veklury sales of approximately
, unchanged from prior guidance. Veklury sales are expected to be highly variable, depending on the frequency and severity of surges, and our guidance will continue to be updated on a quarterly basis as necessary.$2.0 billion -
Diluted earnings per share between
and$4.75 , compared to$5.15 and$5.30 previously.$5.70 -
Non-GAAP diluted earnings per share between
and$6.60 , unchanged from prior guidance.$7.00
Additional information and a reconciliation between GAAP and non-GAAP financial information for the 2023 guidance is provided in the accompanying tables. Also see the Forward-Looking Statements described below. The financial guidance is subject to a number of risks and uncertainties, including uncertainty around the duration and magnitude of the COVID-19 pandemic.
Key Updates Since Our Last Quarterly Release
Virology
- Presented positive Phase 1b proof-of-concept data for an investigational combination regimen of lenacapavir with broadly neutralizing antibodies teropavimab and zinlirvimab as a potential long-acting treatment regimen for HIV with twice-yearly dosing at the Conference on Retroviruses and Opportunistic Infections (“CROI”) 2023. In addition, announced results from multiple collaborative studies evaluating novel investigational combinations and strategies as part of the HIV cure research program.
- Announced new real-world study data at CROI demonstrating Veklury use in hospitalized patients with COVID-19 was associated with a statistically significant reduction in mortality in the overall patient population, including immunocompromised patients. Real-world data analyses of Veklury from other sources are ongoing and may vary in their results or conclusions. Separate in vitro analyses were also presented that showed Veklury retains potent antiviral activity against recent Omicron subvariants.
-
Presented new COVID-19 data at the
European Congress of Clinical Microbiology and Infectious Diseases , including results from a Phase 1 study of obeldesivir (GS-5245), as an investigational oral therapy for the treatment of COVID-19. Additionally, presented findings from a Phase 3 study of Veklury in patients with severe renal impairment, as well as new real-world studies.
Oncology
- Received FDA approval of Trodelvy for the treatment of adult patients with unresectable locally advanced or metastatic HR+/HER2- breast cancer who have received endocrine-based therapy and at least two additional systemic therapies in the metastatic setting.
- Presented positive results from a three-year follow-up analysis of Tecartus in the Phase 2 ZUMA-3 study of patients with R/R ALL at the European CAR T-cell Meeting.
-
Presented positive data from the Phase 2 TROPHY-U-01 study of Trodelvy for the treatment of metastatic urothelial cancer at the
American Society of Clinical Oncology Genitourinary Cancers Symposium . - Completed the acquisition of Tmunity, a clinical stage private biotech company, which provides preclinical and clinical programs, including an investigational “armored” CAR T technology platform that has the potential to be applied to a variety of CAR Ts to enhance anti-tumor activity, as well as rapid manufacturing processes.
- Announced primary overall survival results from the Phase 3 ZUMA-7 study for initial treatment of adult patients with R/R LBCL, which showed a statistically significant improvement for Yescarta in overall survival versus historical treatment.
Inflammation
- Exercised option to license investigational targeted protein degrader molecule NX‑0479 (“GS-6791”) from Nurix. GS-6791 is a potent, selective, oral IRAK4 degrader with potential applications in the treatment of rheumatoid arthritis and other inflammatory diseases.
Corporate
-
The company’s Board of Directors declared a quarterly dividend of
per share of common stock for the second quarter of 2023. The dividend is payable on$0.75 June 29, 2023 , to stockholders of record at the close of business onJune 15, 2023 . Future dividends will be subject to Board approval.
Certain amounts and percentages in this press release may not sum or recalculate due to rounding.
Conference Call
At
Non-GAAP Financial Information
The information presented in this document has been prepared in accordance with
About
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 those relating to: the impact of the COVID-19 pandemic on Gilead’s business, financial condition and results of operations; the development, manufacturing and distribution of Veklury as a treatment for COVID-19, including the uncertainty of the amount and timing of future Veklury sales and Gilead’s ability to effectively manage the global supply and distribution of Veklury; Gilead’s ability to achieve its anticipated full year 2023 financial results, including as a result of potential adverse revenue impacts from COVID-19 and potential revenues from Veklury; Gilead’s ability to make progress on any of its long-term ambitions or strategic priorities laid out in its corporate strategy; Gilead’s ability to accelerate or sustain revenues for its virology, oncology and other programs; Gilead’s ability to realize the potential benefits of acquisitions, collaborations or licensing arrangements, including the arrangements with Tmunity, Arcellx and Nurix; patent protection and estimated loss of exclusivity for our products and product candidates; Gilead’s ability to initiate, progress or complete clinical trials within currently anticipated timeframes or at all, the possibility of unfavorable results from ongoing and additional clinical trials, including those involving lenacapavir, teropavimab, zinlirvimab, obeldesivir, GS-6791, Veklury, Tecartus, Trodelvy, and Yescarta, and the risk that safety and efficacy data from clinical trials may not warrant further development of Gilead’s product candidates or the product candidates of Gilead’s strategic partners; Gilead’s ability to submit new drug applications for new product candidates or expanded indications in the currently anticipated timelines; Gilead’s ability to receive regulatory approvals in a timely manner or at all, and the risk that any such approvals, if granted, may be subject to significant limitations on use; Gilead’s ability to successfully commercialize its products; the risk of potential disruptions to the manufacturing and supply chain of Gilead’s products, including the risk that Kite may be unable to increase its manufacturing capacity, timely manufacture and deliver its products or produce an amount of supply sufficient to satisfy demand for such products; pricing and reimbursement pressures from government agencies and other third parties, including required rebates and other discounts; a larger than anticipated shift in payer mix to more highly discounted payer segments; market share and price erosion caused by the introduction of generic versions of Gilead 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, including Trodelvy; and other risks identified from time to time in Gilead’s reports filed with the
The reader is cautioned that forward-looking statements are not guarantees of future performance and is cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements are based on information currently available to Gilead and Gilead assumes no obligation to update or supplement any such forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements.
Gilead owns or has rights to various trademarks, copyrights and trade names used in its business, including the following: GILEAD®,
For more information on
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||
(unaudited) |
||||||||
|
Three Months Ended |
|||||||
|
|
|||||||
(in millions, except per share amounts) |
2023 |
2022 |
||||||
Revenues: |
|
|
||||||
Product sales |
$ |
6,306 |
|
$ |
6,534 |
|
||
Royalty, contract and other revenues |
|
46 |
|
|
56 |
|
||
Total revenues |
|
6,352 |
|
|
6,590 |
|
||
Costs and expenses: |
|
|
||||||
Cost of goods sold |
|
1,401 |
|
|
1,424 |
|
||
Research and development expenses |
|
1,447 |
|
|
1,178 |
|
||
Acquired in-process research and development expenses |
|
481 |
|
|
8 |
|
||
In-process research and development impairment |
|
— |
|
|
2,700 |
|
||
Selling, general and administrative expenses |
|
1,319 |
|
|
1,083 |
|
||
Total costs and expenses |
|
4,647 |
|
|
6,393 |
|
||
Operating income |
|
1,705 |
|
|
197 |
|
||
Interest expense |
|
(230 |
) |
|
(238 |
) |
||
Other income (expense), net |
|
(174 |
) |
|
(111 |
) |
||
Income (loss) before income taxes |
|
1,300 |
|
|
(152 |
) |
||
Income tax benefit (expense) |
|
(316 |
) |
|
164 |
|
||
Net income |
|
985 |
|
|
12 |
|
||
Net loss attributable to noncontrolling interest |
|
26 |
|
|
7 |
|
||
Net income attributable to Gilead |
$ |
1,010 |
|
$ |
19 |
|
||
Basic earnings per share attributable to Gilead |
$ |
0.81 |
|
$ |
0.02 |
|
||
Shares used in basic earnings per share attributable to Gilead calculation |
|
1,248 |
|
|
1,255 |
|
||
Diluted earnings per share attributable to Gilead |
$ |
0.80 |
|
$ |
0.02 |
|
||
Shares used in diluted earnings per share attributable to Gilead calculation |
|
1,261 |
|
|
1,262 |
|
||
Cash dividends declared per share |
$ |
0.75 |
|
$ |
0.73 |
|
||
|
|
|
||||||
Research and development expenses as a % of revenues |
|
22.8 |
% |
|
17.9 |
% |
||
Selling, general and administrative expenses as a % of revenues |
|
20.8 |
% |
|
16.4 |
% |
|
|||||||||
TOTAL REVENUE SUMMARY |
|||||||||
(unaudited) |
|||||||||
|
Three Months Ended |
|
|||||||
|
|
|
|||||||
(in millions, except percentages) |
2023 |
2022 |
Change |
||||||
Product sales: |
|
|
|
||||||
HIV |
$ |
4,190 |
$ |
3,707 |
13 |
% |
|||
Oncology |
|
670 |
|
420 |
59 |
% |
|||
Liver Disease |
|
675 |
|
635 |
6 |
% |
|||
Other |
|
199 |
|
236 |
(16 |
)% |
|||
Total product sales excluding Veklury |
|
5,733 |
|
4,998 |
15 |
% |
|||
Veklury |
|
573 |
|
1,535 |
(63 |
)% |
|||
Total product sales |
|
6,306 |
|
6,534 |
(3 |
)% |
|||
Royalty, contract and other revenues |
|
46 |
|
56 |
(18 |
)% |
|||
Total revenues |
$ |
6,352 |
$ |
6,590 |
(4 |
)% |
|
|||||||||||
NON-GAAP FINANCIAL INFORMATION(1) |
|||||||||||
(unaudited) |
|||||||||||
|
Three Months Ended |
|
|||||||||
|
|
|
|||||||||
(in millions, except percentages) |
2023 |
2022 |
Change |
||||||||
Non-GAAP: |
|
|
|
||||||||
Cost of goods sold |
$ |
871 |
|
$ |
825 |
|
6 |
% |
|||
Research and development expenses |
$ |
1,439 |
|
$ |
1,150 |
|
25 |
% |
|||
Acquired IPR&D expenses |
$ |
481 |
|
$ |
8 |
|
NM |
|
|||
Selling, general and administrative expenses |
$ |
1,318 |
|
$ |
1,083 |
|
22 |
% |
|||
Other income (expense), net |
$ |
82 |
|
$ |
(15 |
) |
NM |
|
|||
Diluted EPS |
$ |
1.37 |
|
$ |
2.12 |
|
(35 |
)% |
|||
Product gross margin |
|
86.2 |
% |
|
87.4 |
% |
-118 bps |
||||
Research and development expenses as a % of revenues |
|
22.6 |
% |
|
17.5 |
% |
519 bps |
||||
Selling, general and administrative expenses as a % of revenues |
|
20.7 |
% |
|
16.4 |
% |
432 bps |
||||
Operating margin |
|
35.3 |
% |
|
53.5 |
% |
-1817 bps |
||||
Effective tax rate |
|
18.9 |
% |
|
18.4 |
% |
51 bps |
________________________________ |
||
NM - Not Meaningful |
||
(1) |
Refer to Non-GAAP Financial Information section above for further disclosures on non-GAAP financial measures. A reconciliation between GAAP and non-GAAP financial information is provided in the tables on pages 9 - 10. |
|
||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION |
||||||||
(unaudited) |
||||||||
|
Three Months Ended |
|||||||
|
|
|||||||
(in millions, except percentages and per share amounts) |
2023 |
2022 |
||||||
Cost of goods sold reconciliation: |
|
|
||||||
GAAP cost of goods sold |
$ |
1,401 |
|
$ |
1,424 |
|
||
Acquisition-related – amortization(1) |
|
(530 |
) |
|
(557 |
) |
||
Other(2) |
|
— |
|
|
(42 |
) |
||
Non-GAAP cost of goods sold |
$ |
871 |
|
$ |
825 |
|
||
|
|
|
||||||
Product gross margin reconciliation: |
|
|
||||||
GAAP product gross margin |
|
77.8 |
% |
|
78.2 |
% |
||
Acquisition-related – amortization(1) |
|
8.4 |
% |
|
8.5 |
% |
||
Other(2) |
|
— |
% |
|
0.6 |
% |
||
Non-GAAP product gross margin |
|
86.2 |
% |
|
87.4 |
% |
||
|
|
|
||||||
Research and development expenses reconciliation: |
|
|
||||||
GAAP research and development expenses |
$ |
1,447 |
|
$ |
1,178 |
|
||
Acquisition-related – other costs(3) |
|
(8 |
) |
|
(10 |
) |
||
Other(2) |
|
— |
|
|
(18 |
) |
||
Non-GAAP research and development expenses |
$ |
1,439 |
|
$ |
1,150 |
|
||
|
|
|
||||||
IPR&D impairment reconciliation: |
|
|
||||||
GAAP IPR&D impairment |
$ |
— |
|
$ |
2,700 |
|
||
IPR&D impairment |
|
— |
|
|
(2,700 |
) |
||
Non-GAAP IPR&D impairment |
$ |
— |
|
$ |
— |
|
||
|
|
|
||||||
Selling, general and administrative expenses reconciliation: |
|
|
||||||
GAAP selling, general and administrative expenses |
$ |
1,319 |
|
$ |
1,083 |
|
||
Acquisition-related – other costs(3) |
|
(1 |
) |
|
— |
|
||
Non-GAAP selling, general and administrative expenses |
$ |
1,318 |
|
$ |
1,083 |
|
||
|
|
|
||||||
Operating income reconciliation: |
|
|
||||||
GAAP operating income |
$ |
1,705 |
|
$ |
197 |
|
||
Acquisition-related – amortization(1) |
|
530 |
|
|
557 |
|
||
Acquisition-related – other costs(3) |
|
9 |
|
|
10 |
|
||
IPR&D impairment |
|
— |
|
|
2,700 |
|
||
Other(2) |
|
— |
|
|
60 |
|
||
Non-GAAP operating income |
$ |
2,243 |
|
$ |
3,524 |
|
||
|
|
|
||||||
Operating margin reconciliation: |
|
|
||||||
GAAP operating margin |
|
26.8 |
% |
|
3.0 |
% |
||
Acquisition-related – amortization(1) |
|
8.3 |
% |
|
8.5 |
% |
||
Acquisition-related – other costs(3) |
|
0.1 |
% |
|
0.2 |
% |
||
IPR&D impairment |
|
— |
% |
|
41.0 |
% |
||
Other(2) |
|
— |
% |
|
0.9 |
% |
||
Non-GAAP operating margin |
|
35.3 |
% |
|
53.5 |
% |
||
|
|
|
||||||
Other income (expense), net reconciliation: |
|
|
||||||
GAAP other income (expense), net |
$ |
(174 |
) |
$ |
(111 |
) |
||
Loss from equity securities, net |
|
256 |
|
|
96 |
|
||
Non-GAAP other income (expense), net |
$ |
82 |
|
$ |
(15 |
) |
|
||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION - (Continued) |
||||||||
(unaudited) |
||||||||
|
Three Months Ended |
|||||||
|
|
|||||||
(in millions, except percentages and per share amounts) |
2023 |
2022 |
||||||
Effective tax rate reconciliation: |
|
|
||||||
GAAP effective tax rate |
|
24.3 |
% |
|
107.9 |
% |
||
Income tax effect of above non-GAAP adjustments and discrete and related tax adjustments(4) |
|
(5.4 |
)% |
|
(89.5 |
)% |
||
Non-GAAP effective tax rate |
|
18.9 |
% |
|
18.4 |
% |
||
|
|
|
||||||
Net income attributable to Gilead reconciliation: |
|
|
||||||
GAAP net income attributable to Gilead |
$ |
1,010 |
|
$ |
19 |
|
||
Acquisition-related – amortization(1) |
|
422 |
|
|
443 |
|
||
Acquisition-related – other costs(2) |
|
6 |
|
|
10 |
|
||
IPR&D impairment |
|
— |
|
|
2,057 |
|
||
Other(1) |
|
— |
|
|
45 |
|
||
Loss from equity securities, net |
|
257 |
|
|
64 |
|
||
Discrete and related tax charges(4) |
|
29 |
|
|
38 |
|
||
Non-GAAP net income attributable to Gilead |
$ |
1,725 |
|
$ |
2,676 |
|
||
|
|
|
||||||
Diluted earnings per share reconciliation: |
|
|
||||||
GAAP diluted earnings per share |
$ |
0.80 |
|
$ |
0.02 |
|
||
Acquisition-related – amortization(1) |
|
0.33 |
|
|
0.35 |
|
||
Acquisition-related – other costs(3) |
|
0.01 |
|
|
0.01 |
|
||
IPR&D impairment |
|
— |
|
|
1.63 |
|
||
Other(2) |
|
— |
|
|
0.04 |
|
||
Loss from equity securities, net |
|
0.20 |
|
|
0.05 |
|
||
Discrete and related tax charges(4) |
|
0.02 |
|
|
0.03 |
|
||
Non-GAAP diluted earnings per share |
$ |
1.37 |
|
$ |
2.12 |
|
||
|
|
|
||||||
Non-GAAP adjustment summary: |
|
|
||||||
Cost of goods sold adjustments |
$ |
530 |
|
$ |
599 |
|
||
Research and development expenses adjustments |
|
8 |
|
|
28 |
|
||
IPR&D impairment adjustments |
|
— |
|
|
2,700 |
|
||
Selling, general and administrative expenses adjustments |
|
1 |
|
|
— |
|
||
Total non-GAAP adjustments to costs and expenses |
|
539 |
|
|
3,327 |
|
||
Other income (expense), net, adjustments |
|
256 |
|
|
96 |
|
||
Total non-GAAP adjustments before income taxes |
|
795 |
|
|
3,423 |
|
||
Income tax effect of non-GAAP adjustments above |
|
(109 |
) |
|
(803 |
) |
||
Discrete and related tax charges(4) |
|
29 |
|
|
38 |
|
||
Total non-GAAP adjustments after tax |
$ |
715 |
|
$ |
2,657 |
|
______________________________ |
||
(1) |
Relates to amortization of acquired intangibles and inventory step-up charges. |
|
(2) |
Adjustments to Cost of goods sold and Research and development expenses primarily include various restructuring expenses during the first quarter of 2022. |
|
(3) |
Adjustments include employee-related expenses, contingent consideration fair value adjustments and other expenses associated with Gilead’s acquisitions of |
|
(4) |
Represents discrete and related deferred tax charges or benefits primarily associated with acquired intangible assets and transfers of intangible assets from a foreign subsidiary to |
|
||||
RECONCILIATION OF GAAP TO NON-GAAP 2023 FULL-YEAR GUIDANCE(1) |
||||
(unaudited) |
||||
|
|
|
|
|
(in millions, except percentages and per share amounts) |
|
Provided
|
|
Updated
|
Projected product gross margin GAAP to non-GAAP reconciliation: |
|
|
|
|
GAAP projected product gross margin |
|
|
|
|
Acquisition-related expenses |
|
~ |
|
~ |
Non-GAAP projected product gross margin |
|
|
|
|
|
|
|
|
|
Projected operating income GAAP to non-GAAP reconciliation: |
|
|
|
|
GAAP projected operating income |
|
|
|
|
Acquisition-related expenses |
|
~ 1,800 |
|
~ 2,400 |
Non-GAAP projected operating income |
|
|
|
|
|
|
|
|
|
Projected effective tax rate GAAP to non-GAAP reconciliation: |
|
|
|
|
GAAP projected effective tax rate |
|
~ |
|
~ |
Discrete and related tax adjustments, and income tax effect of adjustments above and fair value adjustments of equity securities |
|
(~ |
|
(~ |
Non-GAAP projected effective tax rate |
|
~ |
|
~ |
|
|
|
|
|
Projected diluted EPS GAAP to non-GAAP reconciliation: |
|
|
|
|
GAAP projected diluted EPS |
|
|
|
|
Acquisition-related expenses, fair value adjustments of equity securities and discrete and related tax adjustments |
|
~ 1.30 |
|
~ 1.85 |
Non-GAAP projected diluted EPS |
|
|
|
|
________________________________ |
||
(1) |
Our full-year guidance excludes the potential impact of any (i) acquisitions or business development transactions that have not been executed, (ii) future fair value adjustments of equity securities and (iii) discrete tax charges or benefits associated with changes in tax related laws and guidelines that have not been enacted, as Gilead is unable to project such amounts. The non-GAAP full-year guidance includes non-GAAP adjustments to actual current period results as well as adjustments for the known future impact associated with events that have already occurred, such as future amortization of our intangible assets and the future impact of discrete and related deferred tax charges or benefits primarily associated with acquired intangible assets and transfers of intangible assets from a foreign subsidiary to |
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(unaudited) |
||||||
|
|
|
||||
(in millions) |
2023 |
2022 |
||||
Assets |
|
|
||||
Cash, cash equivalents and marketable securities |
$ |
7,200 |
$ |
7,630 |
||
Accounts receivable, net |
|
4,162 |
|
4,777 |
||
Inventories |
|
3,010 |
|
2,820 |
||
Property, plant and equipment, net |
|
5,479 |
|
5,475 |
||
Intangible assets, net |
|
28,348 |
|
28,894 |
||
|
|
8,314 |
|
8,314 |
||
Other assets |
|
5,364 |
|
5,262 |
||
Total assets |
$ |
61,876 |
$ |
63,171 |
||
Liabilities and Stockholders’ Equity |
|
|
||||
Current liabilities |
$ |
10,528 |
$ |
11,237 |
||
Long-term liabilities |
|
30,409 |
|
30,725 |
||
Stockholders’ equity(1) |
|
20,939 |
|
21,209 |
||
Total liabilities and stockholders’ equity |
$ |
61,876 |
$ |
63,171 |
________________________________ |
||
(1) |
As of |
|
||||||||
SELECTED CASH FLOW INFORMATION |
||||||||
(unaudited) |
||||||||
|
Three Months Ended |
|||||||
|
|
|||||||
(in millions) |
2023 |
|
2022 |
|||||
Net cash provided by operating activities |
$ |
1,744 |
|
$ |
1,840 |
|
||
Net cash used in investing activities |
|
(826 |
) |
|
(1,070 |
) |
||
Net cash used in financing activities |
|
(1,406 |
) |
|
(1,794 |
) |
||
Effect of exchange rate changes on cash and cash equivalents |
|
13 |
|
|
(18 |
) |
||
Net change in cash and cash equivalents |
|
(476 |
) |
|
(1,042 |
) |
||
Cash and cash equivalents at beginning of period |
|
5,412 |
|
|
5,338 |
|
||
Cash and cash equivalents at end of period |
$ |
4,936 |
|
$ |
4,296 |
|
|
Three Months Ended |
|||||||
|
|
|||||||
(in millions) |
2023 |
|
2022 |
|||||
Net cash provided by operating activities |
$ |
1,744 |
|
$ |
1,840 |
|
||
Capital expenditures |
|
(109 |
) |
|
(247 |
) |
||
Free cash flow (1) |
$ |
1,635 |
|
$ |
1,593 |
|
________________________________ |
||
(1) |
Free cash flow is a non-GAAP liquidity measure. Please refer to our disclosures in the Non-GAAP Financial Information section above. |
PRODUCT SALES SUMMARY |
||||||
(unaudited) |
||||||
|
Three Months Ended |
|||||
|
|
|||||
(in millions) |
2023 |
2022 |
||||
HIV |
|
|
||||
Biktarvy – |
$ |
2,161 |
$ |
1,706 |
||
Biktarvy – |
|
304 |
|
261 |
||
Biktarvy – Other International |
|
212 |
|
184 |
||
|
|
2,677 |
|
2,151 |
||
|
|
|
||||
Complera / Eviplera – |
|
14 |
|
17 |
||
Complera / Eviplera – |
|
22 |
|
24 |
||
Complera / Eviplera – Other International |
|
3 |
|
4 |
||
|
|
39 |
|
44 |
||
|
|
|
||||
Descovy – |
|
395 |
|
311 |
||
Descovy – |
|
25 |
|
32 |
||
Descovy – Other International |
|
29 |
|
31 |
||
|
|
449 |
|
374 |
||
|
|
|
||||
Genvoya – |
|
417 |
|
457 |
||
Genvoya – |
|
55 |
|
77 |
||
Genvoya – Other International |
|
29 |
|
48 |
||
|
|
501 |
|
582 |
||
|
|
|
||||
Odefsey – |
|
230 |
|
232 |
||
Odefsey – |
|
76 |
|
96 |
||
Odefsey – Other International |
|
11 |
|
11 |
||
|
|
317 |
|
339 |
||
|
|
|
||||
Stribild – |
|
20 |
|
22 |
||
Stribild – |
|
6 |
|
8 |
||
Stribild – Other International |
|
2 |
|
3 |
||
|
|
28 |
|
32 |
||
|
|
|
||||
Truvada – |
|
23 |
|
28 |
||
Truvada – |
|
3 |
|
4 |
||
Truvada – Other International |
|
5 |
|
6 |
||
|
|
32 |
|
38 |
||
|
|
|
||||
Revenue share – Symtuza(1) – |
|
98 |
|
86 |
||
Revenue share – Symtuza(1) – |
|
36 |
|
44 |
||
Revenue share – Symtuza(1) – Other International |
|
4 |
|
3 |
||
|
|
138 |
|
132 |
||
|
|
|
||||
Other HIV(2) – |
|
4 |
|
5 |
||
Other HIV(2) – |
|
1 |
|
4 |
||
Other HIV(2) – Other International |
|
3 |
|
5 |
||
|
|
9 |
|
14 |
||
|
|
|
||||
Total HIV – |
|
3,364 |
|
2,862 |
||
Total HIV – |
|
528 |
|
550 |
||
Total HIV – Other International |
|
298 |
|
295 |
||
|
|
4,190 |
|
3,707 |
|
||||
PRODUCT SALES SUMMARY - (Continued) |
||||
(unaudited) |
||||
|
Three Months Ended |
|||
|
|
|||
(in millions) |
2023 |
2022 |
||
Oncology |
|
|
||
|
|
|
||
Tecartus – |
59 |
47 |
||
Tecartus – |
27 |
15 |
||
Tecartus – Other International |
3 |
1 |
||
|
89 |
63 |
||
|
|
|
||
Yescarta – |
210 |
125 |
||
Yescarta – |
121 |
77 |
||
Yescarta – Other International |
28 |
9 |
||
|
359 |
211 |
||
|
|
|
||
Total |
269 |
172 |
||
Total |
148 |
92 |
||
Total |
31 |
10 |
||
|
448 |
274 |
||
|
|
|
||
Trodelvy |
|
|
||
Trodelvy – |
162 |
119 |
||
Trodelvy– |
54 |
25 |
||
Trodelvy – Other International |
6 |
2 |
||
|
222 |
146 |
||
|
|
|
||
Total Oncology – |
431 |
292 |
||
Total Oncology – |
202 |
117 |
||
Total Oncology – Other International |
37 |
11 |
||
|
670 |
420 |
||
Liver Disease |
|
|
||
HCV |
|
|
||
Ledipasvir / Sofosbuvir(3) – |
3 |
13 |
||
Ledipasvir / Sofosbuvir(3) – |
7 |
4 |
||
Ledipasvir / Sofosbuvir(3) – Other International |
5 |
18 |
||
|
15 |
35 |
||
|
|
|
||
Sofosbuvir / Velpatasvir(4) – |
204 |
162 |
||
Sofosbuvir / Velpatasvir(4) – |
90 |
83 |
||
Sofosbuvir / Velpatasvir(4) – Other International |
90 |
85 |
||
|
385 |
330 |
||
|
|
|
||
Other HCV(5) – |
24 |
24 |
||
Other HCV(5) – |
18 |
8 |
||
Other HCV(5) – Other International |
4 |
2 |
||
|
45 |
34 |
||
|
|
|
||
Total HCV – |
232 |
199 |
||
Total HCV – |
114 |
95 |
||
Total HCV – Other International |
99 |
105 |
||
|
445 |
399 |
|
|||||||
PRODUCT SALES SUMMARY - (Continued) |
|||||||
(unaudited) |
|||||||
|
Three Months Ended |
||||||
|
|
||||||
(in millions) |
2023 |
2022 |
|||||
HBV/HDV |
|
|
|||||
Vemlidy – |
|
87 |
|
|
80 |
||
Vemlidy – |
|
9 |
|
|
9 |
||
Vemlidy – Other International |
|
103 |
|
|
111 |
||
|
|
199 |
|
|
200 |
||
|
|
|
|||||
Viread – |
|
(1 |
) |
|
— |
||
Viread – |
|
6 |
|
|
6 |
||
Viread – Other International |
|
14 |
|
|
17 |
||
|
|
19 |
|
|
23 |
||
|
|
|
|||||
Other HBV/HDV(6) – |
|
11 |
|
|
13 |
||
|
|
11 |
|
|
13 |
||
|
|
|
|||||
Total HBV/HDV – |
|
86 |
|
|
80 |
||
Total HBV/HDV – |
|
26 |
|
|
28 |
||
Total HBV/HDV – Other International |
|
117 |
|
|
128 |
||
|
|
230 |
|
|
235 |
||
|
|
|
|||||
Total Liver Disease – |
|
318 |
|
|
279 |
||
Total Liver Disease – |
|
140 |
|
|
123 |
||
Total Liver Disease – Other International |
|
217 |
|
|
233 |
||
|
|
675 |
|
|
635 |
||
Veklury |
|
|
|||||
Veklury – |
|
252 |
|
|
801 |
||
Veklury – |
|
111 |
|
|
304 |
||
Veklury – Other International |
|
209 |
|
|
430 |
||
|
|
573 |
|
|
1,535 |
||
Other |
|
|
|||||
AmBisome – |
|
6 |
|
|
25 |
||
AmBisome – |
|
60 |
|
|
66 |
||
AmBisome – Other International |
|
49 |
|
|
53 |
||
|
|
116 |
|
|
144 |
||
|
|
|
|||||
Letairis – |
|
32 |
|
|
43 |
||
|
|
|
|||||
Other(7) – |
|
30 |
|
|
26 |
||
Other(7) – |
|
12 |
|
|
15 |
||
Other(7) – Other International |
|
9 |
|
|
9 |
||
|
|
51 |
|
|
50 |
||
|
|
|
|||||
Total Other – |
|
69 |
|
|
94 |
||
Total Other – |
|
72 |
|
|
81 |
||
Total Other – Other International |
|
58 |
|
|
62 |
||
|
|
199 |
|
|
236 |
||
|
|
|
|||||
Total product sales – |
|
4,434 |
|
|
4,329 |
||
Total product sales – |
|
1,053 |
|
|
1,174 |
||
Total product sales – Other International |
|
819 |
|
|
1,031 |
||
|
$ |
6,306 |
|
$ |
6,534 |
______________________________ |
||
(1) |
Represents Gilead’s revenue from cobicistat (“C”), |
|
(2) |
Includes Atripla, Emtriva, Sunlenca and Tybost. |
|
(3) |
Amounts consist of sales of Harvoni and the authorized generic version of Harvoni sold by Gilead’s separate subsidiary, |
|
(4) |
Amounts consist of sales of Epclusa and the authorized generic version of Epclusa sold by Gilead’s separate subsidiary, |
|
(5) |
Includes Vosevi and Sovaldi. |
|
(6) |
Includes Hepcludex and Hepsera. |
|
(7) |
Includes Cayston, Jyseleca, Ranexa and Zydelig. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230427005279/en/
Investors:
investor_relations@gilead.com
Media:
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Source: