01—Abstract
Summary
Summary of the 10-K filed February 22, 2023. Cited figures are marked; the original filing is the authoritative source.
Gilead Sciences, Inc. (GILD) reported relatively flat total revenues of $27.3 billiona 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 billionb, 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.
02—Key points
Key Highlights
- Total 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.
- Net 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.
- Gilead continues to expand its oncology offerings with new approvals and strategic collaborations, including acquisitions of MiroBio and Tmunity Therapeutics, and a collaboration with Arcellx.
- The 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.
- The 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.
- Gilead repurchased approximately $1.4 billion of its common stock and paid $3.7 billion in dividends in 2022, demonstrating a commitment to shareholder returns.
- The company faces ongoing patent litigation, particularly concerning sofosbuvir and TAF, and is actively defending its intellectual property.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Gilead Sciences, Inc. kept $0.17.
- Revenue$27.28B100.0%
- Cost of revenue−$5.66B20.7%
- Gross profit$21.62B79.3%
- Operating costs−$14.29B52.4%
- Operating income$7.33B26.9%
- Interest, other & tax−$2.74B10.0%
- Net income$4.59B16.8%
Where FY2022 revenue went
$27.28B- Other operating costs: $8.62B, 32% of revenue
- SG&A: $5.67B, 21% of revenue
- Cost of revenue: $5.66B, 21% of revenue
- Net income: $4.59B, 17% of revenue
- Interest, other & tax: $2.74B, 10% of revenue
Kept 17% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 22, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $27.28B$27.30B | −0.1% |
| Cost of Revenue | $5.66B$6.60B | −14.3% |
| Gross Profit | $21.62B$20.70B | +4.4% |
| SG&A Expenses | $5.67B$5.25B | +8.1% |
| Operating Expenses | $19.95B$17.39B | +14.7% |
| Operating Income | $7.33B$9.92B | −26.1% |
| Interest Expense | $935.00M$1.00B | −6.6% |
| Net Income | $4.59B$6.22B | −26.2% |
| EPS (Basic) | $3.66$4.96 | −26.2% |
| EPS (Diluted) | $3.64$4.93 | −26.2% |
| Shares Outstanding (Basic) | 1.25B1.26B | −0.1% |
| Shares Outstanding (Diluted) | 1.26B1.26B | 0.0% |
05—Questions
Frequently Asked Questions
What were the key drivers of Gilead's revenue performance in 2022?
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.
What caused the significant drop in net income in 2022?
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.
How is Gilead investing in its future growth, particularly in oncology?
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.
What is the outlook for Gilead's HIV business?
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.
06—Continue