10-KPeriod: FY2022

GILEAD SCIENCES, INC. Annual Report, Year Ended Dec 31, 2022

Filed February 22, 2023For Securities:GILD

Summary

Gilead Sciences, Inc. (GILD) reported relatively flat total revenues of $27.3 billion for the fiscal year ended December 31, 2022, compared to the prior year. This stability was driven by growth in key areas like HIV, cell therapy, and Trodelvy, which offset a significant decline in Veklury (remdesivir) sales due to lower COVID-19 hospitalization rates. However, net income saw a substantial decrease of 26% to $4.6 billion, largely impacted by a $2.7 billion impairment charge related to Trodelvy's in-process R&D, higher R&D expenses, and a one-time charge in the prior year for a bictegravir litigation settlement that did not recur. Despite the net income decline, the company continues to invest in its pipeline through strategic acquisitions and collaborations, and returned value to shareholders through dividends and share repurchases.

Financial Highlights

57 data points
Beta

Revenue

$27.28B

79.3% Gross Margin

Net Income

$4.59B

16.8% Net Margin

EPS (Diluted)

$3.64

Total Assets

$63.17B

Cash & Equivalents

$5.41B

Free Cash Flow

$8.34B

Financial Statements
Beta
Revenue$27.28B
Cost of Revenue$5.66B
Gross Profit$21.62B
SG&A Expenses$5.67B
Operating Expenses$19.95B
Operating Income$7.33B
Interest Expense$935.00M
Net Income$4.59B
EPS (Basic)$3.66
EPS (Diluted)$3.64
Shares Outstanding (Basic)1.25B
Shares Outstanding (Diluted)1.26B

Key Highlights

  • 1Total revenues remained stable at $27.3 billion, supported by strong performance in the HIV portfolio and significant growth in oncology (Cell Therapy up 68%, Trodelvy up 79%), but tempered by a 30% decline in Veklury sales.
  • 2Net income decreased by 26% to $4.6 billion, primarily due to a $2.7 billion impairment charge related to Trodelvy's in-process R&D.
  • 3Gilead continues to expand its oncology offerings with new approvals and strategic collaborations, including acquisitions of MiroBio and Tmunity Therapeutics, and a collaboration with Arcellx.
  • 4The HIV portfolio, representing 64% of total product sales, grew 5% driven by Biktarvy, though offset by the loss of exclusivity for Truvada in the U.S.
  • 5The company announced the FDA approval of Sunlenca (lenacapavir) for HIV treatment, a first-in-class, twice-yearly injection, marking a significant advancement in long-acting HIV therapy.
  • 6Gilead repurchased approximately $1.4 billion of its common stock and paid $3.7 billion in dividends in 2022, demonstrating a commitment to shareholder returns.
  • 7The company faces ongoing patent litigation, particularly concerning sofosbuvir and TAF, and is actively defending its intellectual property.

Frequently Asked Questions

Gilead's revenue in 2022 was largely stable at $27.3 billion. Growth in the HIV franchise (up 5% to $17.2 billion) driven by Biktarvy and strong increases in oncology products like Yescarta and Tecartus (Cell Therapy up 68% to $1.5 billion) and Trodelvy (up 79% to $680 million) were key drivers. These increases offset a significant 30% decline in Veklury sales, which is attributed to reduced COVID-19 hospitalization rates.

The primary reason for the 26% decrease in net income to $4.6 billion was a $2.7 billion impairment charge recognized in the first quarter of 2022 related to acquired in-process research and development for Trodelvy. Higher R&D expenses and a prior-year litigation settlement charge that did not repeat also contributed to the decline.

Gilead is actively investing in its future growth through strategic business development. In oncology, this includes the acquisition of MiroBio and Tmunity Therapeutics, and collaborations with Arcellx and Dragonfly Therapeutics. These moves aim to expand its pipeline of innovative cancer therapies, including cell therapies and novel immunotherapies.

Gilead's HIV franchise remains a cornerstone of its business, showing a 5% revenue increase in 2022. The company is poised to shape the long-acting HIV market with recent approvals for Sunlenca (lenacapavir), a twice-yearly injectable treatment. Continued demand for Biktarvy and potential future long-acting options are key to its sustained growth in this segment.