Early Access

10-QPeriod: Q3 FY2008

GILEAD SCIENCES, INC. Quarterly Report for Q3 Ended Sep 30, 2008

Filed October 31, 2008For Securities:GILD

Summary

Gilead Sciences, Inc. (GILD) demonstrated robust financial performance for the nine months ended September 30, 2008, with total revenues reaching $3.91 billion, a significant increase from $3.14 billion in the prior year period. This growth was primarily driven by strong product sales, particularly in the antiviral segment, which rose 36% year-over-year to $3.40 billion. Truvada and Atripla were key contributors, showing substantial sales increases. Net income for the nine months also saw healthy growth, climbing to $1.44 billion from $1.21 billion in the same period last year. The company's financial position remains strong, with cash, cash equivalents, and marketable securities totaling $3.26 billion as of September 30, 2008. Gilead continues to actively manage its capital through share repurchases, notably an accelerated share repurchase program initiated in October 2008. Research and development expenses increased, reflecting ongoing investment in pipeline development. Despite a decrease in royalty revenues, primarily due to lower Tamiflu sales, the company's core product sales growth indicates a positive operational trajectory.

Financial Statements
Beta
Revenue$1.37B
Cost of Revenue$300.18M
Gross Profit$1.07B
SG&A Expenses$189.19M
Operating Expenses$677.43M
Operating Income$693.83M
Interest Expense$16.38M
Net Income$495.85M
EPS (Basic)$0.27
EPS (Diluted)$0.26
Shares Outstanding (Basic)1.84B
Shares Outstanding (Diluted)1.92B

Key Highlights

  • 1Total revenues increased by 24.6% year-over-year for the nine months ended September 30, 2008, reaching $3.91 billion.
  • 2Product sales grew by 37% year-over-year for the nine months ended September 30, 2008, totaling $3.70 billion, driven by strong performance in antiviral products.
  • 3Net income for the nine months ended September 30, 2008, increased to $1.44 billion, up from $1.21 billion in the prior year period.
  • 4The company's cash, cash equivalents, and marketable securities position strengthened, reaching $3.26 billion as of September 30, 2008.
  • 5Research and development expenses increased by 28% year-over-year for the nine months, indicating continued investment in pipeline development.
  • 6Royalty revenues decreased significantly by 55% year-over-year for the nine months, largely due to reduced Tamiflu sales by Roche.
  • 7Gilead continued its share repurchase program, including a $750 million accelerated share repurchase in October 2008.

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