01—Abstract
Summary
Summary of the 10-K filed February 23, 2022. Cited figures are marked; the original filing is the authoritative source.
Gilead Sciences, Inc. (GILD) reported solid revenue growth of 11% in 2021, reaching $27.3 billiona.
This was primarily driven by strong performance from Veklury (remdesivir), its treatment for COVID-19, which nearly doubled sales compared to the previous year. The company also saw continued growth in its Biktarvy franchise for HIV, and increased contributions from its oncology segment, particularly Trodelvy and its cell therapies (Yescarta and Tecartus). Despite these successes, Gilead faced headwinds from the loss of exclusivity for its Truvada and Atripla HIV medications in the U.S., leading to a 4%b decrease in HIV product sales.
The company also experienced a decline in HCV product sales due to reduced patient demand amid the COVID-19 pandemic. Gilead reported a significant increase in net income to $6.2 billionc, a substantial improvement from $123 million in 2020, which was largely due to lower acquired in-process research and development (IPR&D) charges and favorable equity investment performance, partially offset by a large settlement charge related to bictegravir litigation. The company outlined a strategic focus on expanding its commercial portfolio and clinical pipeline, aiming to bring 10+ transformative therapies to patients by 2030.
For 2022, Gilead anticipates product sales growth of 2-4%d excluding Veklury, with expectations of continued recovery in its HIV business and growth in oncology. However, significant uncertainties remain regarding the trajectory of the COVID-19 pandemic and future Veklury sales.
02—Key points
Key Highlights
- Total revenues increased by 11% to $27.3 billion in 2021, driven by Veklury and growth in HIV and oncology portfolios.
- Veklury sales more than doubled to $5.6 billion in 2021, significantly contributing to overall revenue.
- HIV product sales saw a 4% decrease to $16.3 billion due to generic competition following the loss of exclusivity for Truvada and Atripla in the U.S.
- Oncology segment sales, including Trodelvy and cell therapies (Yescarta, Tecartus), showed strong growth, increasing by 43% to $871 million for cell therapy alone.
- Net income surged to $6.2 billion in 2021 from $123 million in 2020, primarily due to lower IPR&D expenses and reduced unrealized losses from equity investments.
- Gilead announced a $1.25 billion settlement payment related to bictegravir litigation, impacting the fourth quarter of 2021, with a 3% ongoing royalty on future U.S. Biktarvy sales until October 2027.
- The company maintained a strong liquidity position with $7.8 billion in cash, cash equivalents, and marketable debt securities as of December 31, 2021.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Gilead Sciences, Inc. kept $0.23.
- Revenue$27.30B100.0%
- Cost of revenue−$6.60B24.2%
- Gross profit$20.70B75.8%
- Operating costs−$10.79B39.5%
- Operating income$9.92B36.3%
- Interest, other & tax−$3.69B13.5%
- Net income$6.22B22.8%
Where FY2021 revenue went
$27.30B- Cost of revenue: $6.60B, 24% of revenue
- Net income: $6.22B, 23% of revenue
- Other operating costs: $5.54B, 20% of revenue
- SG&A: $5.25B, 19% of revenue
- Interest, other & tax: $3.69B, 14% of revenue
Kept 23% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 23, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $27.30B$24.69B | +10.6% |
| Cost of Revenue | $6.60B$4.57B | +44.4% |
| Gross Profit | $20.70B$20.12B | +2.9% |
| SG&A Expenses | $5.25B$5.15B | +1.8% |
| Operating Expenses | $17.39B$20.62B | −15.7% |
| Operating Income | $9.92B$4.07B | +143.6% |
| Interest Expense | $1.00B$984.00M | +1.7% |
| Net Income | $6.22B$123.00M | +4961.0% |
| EPS (Basic) | $4.96$0.10 | +4860.0% |
| EPS (Diluted) | $4.93$0.10 | +4830.0% |
| Shares Outstanding (Basic) | 1.26B1.26B | −0.1% |
| Shares Outstanding (Diluted) | 1.26B1.26B | −0.1% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Gilead's revenue growth in 2021?
Gilead's revenue growth in 2021 was primarily driven by a significant increase in sales of Veklury (remdesivir), its COVID-19 treatment, which nearly doubled its sales. Additionally, strong performance from its HIV franchise, particularly Biktarvy, and growing contributions from its oncology portfolio, including Trodelvy and cell therapies, also contributed to the overall revenue increase.
How did the loss of exclusivity for Truvada and Atripla impact Gilead's financial results?
The loss of exclusivity for Truvada and Atripla in the U.S. in October 2020 led to a 4% decrease in Gilead's HIV product sales for 2021, as generic competition impacted these established brands. This decline was partially offset by the growth of other HIV products like Biktarvy.
What is Gilead's outlook for product sales in 2022?
Gilead projects product sales growth of 2-4% in 2022, excluding Veklury sales. The company expects its HIV business to continue recovering from the pandemic's impact and the loss of exclusivity for Truvada and Atripla to be largely behind them. Growth is also anticipated from the oncology business, including Trodelvy and cell therapies.
What significant legal or financial settlements did Gilead report in this filing?
Gilead reported a $1.25 billion settlement payment related to bictegravir litigation. This settlement also includes an ongoing royalty payment of 3% on future U.S. sales of Biktarvy until October 5, 2027. This charge was recorded in the fourth quarter of 2021.
06—Continue