What were the key drivers of Gilead's revenue growth in this quarter?

Gilead's revenue growth was primarily driven by a substantial increase in product sales, particularly from its antiviral products such as Truvada and Atripla. The launch of Atripla in France and continued sales volume growth in the US and Europe for Truvada were significant contributors. Additionally, royalty revenues saw an increase, largely due to higher Tamiflu royalties.

How did the acquisition of CV Therapeutics impact Gilead's financial statements?

The acquisition of CV Therapeutics in April 2009 significantly impacted Gilead's balance sheet and statements of cash flows. The company recorded $1.39 billion in consideration transferred, which included substantial intangible assets related to marketed products ($951.2 million) and in-process R&D ($180.1 million). The acquisition also led to increased operating expenses, particularly in R&D and SG&A, due to integration and restructuring efforts. The cash used in investing activities increased significantly due to the acquisition.

What is the outlook for Gilead's key antiviral products, Truvada and Atripla?

Truvada and Atripla continue to be strong performers, representing a significant portion of Gilead's total revenues. The company reported continued sales volume growth for both products in the US and Europe. Atripla's sales were boosted by its launch in France. Gilead's future success remains significantly dependent on these products, and the company is actively working to manage patent challenges and potential generic competition, as highlighted by the ongoing litigation with Teva Pharmaceuticals.

How is Gilead managing its cash and investments?

Gilead maintained a strong cash position, although it decreased by $341.2 million during the six months ending June 30, 2009, primarily due to the CV Therapeutics acquisition and stock repurchases. The company generated substantial operating cash flow ($1.26 billion) which helped offset these outflows. Gilead also utilized its revolving credit facility, borrowing $400 million to partially fund the CV Therapeutics acquisition. The company continues to manage its marketable securities portfolio, which includes some auction rate securities, carefully considering market conditions and investment policy goals.

GILD 10-Q Quarterly Report Q2 FY2009 — Revenue, Net Income, EPS

Summary

Gilead Sciences, Inc. (GILD) reported strong financial performance for the quarter and six months ending June 30, 2009, driven by significant growth in its antiviral product sales, particularly Truvada and Atripla. Total revenues increased substantially year-over-year, reflecting robust demand for its HIV treatments. The company completed the acquisition of CV Therapeutics in April 2009, which is expected to expand its presence in the cardiovascular therapeutic area and contributed $951.2 million in intangible assets related to marketed products and $180.1 million to in-process R&D. Despite increased operating expenses related to the acquisition and restructuring efforts, Gilead maintained healthy profitability and generated strong operating cash flows. The company's balance sheet shows a solid cash position, although it decreased due to the CV Therapeutics acquisition and stock repurchases. Gilead continues to focus on its core antiviral business while strategically investing in new therapeutic areas through acquisitions and collaborations. The company is also actively managing its capital structure, including ongoing stock repurchase programs and prudent management of its credit facility. Investors should note the significant contribution of HIV products to overall revenue and the company's ongoing efforts to expand its product portfolio and R&D pipeline.

Financial Highlights

50 data points

Beta

Revenue

$1.65B

0.7% Gross Margin

Net Income

$571.40M

0.3% Net Margin

EPS (Diluted)

$0.30

Total Assets

$8.39B

Cash & Equivalents

$1.04B

Free Cash Flow

$622.92M

Financial Statements

Beta

Revenue	$1.65B
Cost of Revenue	$383.05M
Gross Profit	$1.19B
SG&A Expenses	$261.41M
Operating Expenses	$886.09M
Operating Income	$761.06M
Interest Expense	$18.48M
Net Income	$571.40M
EPS (Basic)	$0.32
EPS (Diluted)	$0.30
Shares Outstanding (Basic)	1.81B
Shares Outstanding (Diluted)	1.87B

Key Highlights

1Total revenues for the three months ended June 30, 2009, increased by 29% to $1.65 billion compared to the same period in 2008.
2Product sales increased by 29% to $1.57 billion for the three months ended June 30, 2009, driven by strong performance in antiviral products.
3Completed the acquisition of CV Therapeutics, Inc. in April 2009 for $1.39 billion, significantly expanding the cardiovascular therapeutic area.
4Antiviral product sales, primarily from Truvada and Atripla, grew by 26% and 27% for the three and six months ended June 30, 2009, respectively.
5Operating income increased by 26% to $761.1 million for the three months ended June 30, 2009.
6Net income attributable to Gilead increased by 31% to $571.4 million for the three months ended June 30, 2009.
7Cash provided by operating activities was $1.26 billion for the six months ended June 30, 2009.

GILEAD SCIENCES, INC. Quarterly Report for Q2 Ended Jun 30, 2009

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions