10-KPeriod: FY2015

GILEAD SCIENCES, INC. Annual Report, Year Ended Dec 31, 2015

Filed February 24, 2016For Securities:GILD

Summary

Gilead Sciences, Inc. (GILD) reported a strong financial performance for the fiscal year ending December 31, 2015, with total revenues reaching $32.6 billion, a significant increase of 31% year-over-year. This growth was primarily driven by its antiviral products, particularly the Hepatitis C treatments Harvoni and Sovaldi, which accounted for a substantial portion of the revenue. The company also saw continued strength in its HIV franchise, supported by newer single-tablet regimens like Genvoya. While the company demonstrated robust revenue growth and profitability, it also highlighted ongoing investments in research and development, with R&D expenses increasing to $3.0 billion. Gilead's balance sheet remained strong, with cash, cash equivalents, and marketable securities totaling $26.2 billion. The company also returned significant capital to shareholders through share repurchases and initiated a quarterly dividend. Gilead faces a competitive market and ongoing pricing pressures, especially in the HCV segment, and is actively managing legal and patent challenges. The company provided an outlook for 2016, anticipating continued focus on pipeline progression and commercial uptake of its key products.

Financial Highlights

56 data points
Beta

Revenue

$32.64B

87.7% Gross Margin

Net Income

$18.11B

55.5% Net Margin

EPS (Diluted)

$11.91

Total Assets

$51.72B

Cash & Equivalents

$12.85B

Free Cash Flow

$21.25B

Financial Statements
Beta
Revenue$32.64B
Cost of Revenue$4.01B
Gross Profit$28.63B
R&D Expenses$3.01B
SG&A Expenses$3.43B
Operating Expenses$10.45B
Operating Income$22.19B
Interest Expense$688.00M
Net Income$18.11B
EPS (Basic)$12.37
EPS (Diluted)$11.91
Shares Outstanding (Basic)1.46B
Shares Outstanding (Diluted)1.52B

Key Highlights

  • 1Total revenues increased by 31% to $32.6 billion in 2015, driven by strong antiviral product sales.
  • 2Antiviral products, including HCV and HIV treatments, generated $30.2 billion in sales, representing 93% of total revenues.
  • 3Harvoni and Sovaldi sales were substantial, although Sovaldi sales declined due to patient uptake of Harvoni.
  • 4HIV product sales grew, boosted by newer single-tablet regimens like Genvoya.
  • 5Research and Development (R&D) expenses increased by 6% to $3.0 billion, reflecting continued investment in pipeline development.
  • 6The company ended the year with a strong cash position of $26.2 billion.
  • 7Gilead initiated a quarterly dividend of $0.43 per share and continued its aggressive share repurchase program.

Frequently Asked Questions

Gilead's primary revenue drivers in 2015 were its antiviral products, specifically treatments for Hepatitis C (HCV) like Harvoni and Sovaldi, and treatments for Human Immunodeficiency Virus (HIV). These segments collectively represented 93% of the company's total revenue.

Gilead continued to invest heavily in research and development, with R&D expenses increasing by 6% to $3.0 billion in 2015. This investment supported the progression of its product pipeline across key therapeutic areas, including liver disease and HIV.

Gilead maintained a strong financial position, ending 2015 with $26.2 billion in cash, cash equivalents, and marketable securities. The company demonstrated a commitment to returning capital to shareholders by repurchasing $10.0 billion in common stock and initiating a quarterly dividend of $0.43 per share.

Gilead highlighted significant risks including substantial revenue dependence on HCV and HIV products, potential for increased competition and pricing pressure in these markets, challenges in accurately forecasting demand, and numerous ongoing litigation and patent challenges related to its key products, particularly Sovaldi and Harvoni.