Summary
Gilead Sciences, Inc. (GILD) reported robust financial performance for the nine months ended September 30, 2009, demonstrating significant revenue growth driven primarily by its antiviral products, particularly Truvada and Atripla. The company successfully integrated the acquisition of CV Therapeutics, expanding its presence in the cardiovascular therapeutic area and adding significant intangible assets and goodwill. Despite increased operating expenses related to R&D reimbursements, restructuring, and integration costs, Gilead maintained strong profitability and generated substantial operating cash flow. The company's liquidity remains solid, supported by substantial cash and marketable securities, and it continues to execute its share repurchase program.
Financial Highlights
50 data points| Revenue | $1.80B |
| Cost of Revenue | $409.70M |
| Gross Profit | $1.24B |
| SG&A Expenses | $227.43M |
| Operating Expenses | $906.98M |
| Operating Income | $894.41M |
| Interest Expense | $17.22M |
| Net Income | $673.03M |
| EPS (Basic) | $0.38 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 1.81B |
| Shares Outstanding (Diluted) | 1.86B |
Key Highlights
- 1Total revenues increased by 27% year-over-year for the nine months ended September 30, 2009, reaching $4.98 billion, primarily driven by a 26% increase in product sales.
- 2The acquisition of CV Therapeutics for $1.39 billion was completed on April 15, 2009, significantly increasing intangible assets and goodwill, with $951.2 million attributed to marketed products (Ranexa and Lexiscan) and $180.1 million to in-process R&D.
- 3Antiviral product sales, a core driver for Gilead, grew by 24% year-over-year for the nine months, led by strong performance in Truvada (18% growth) and Atripla (52% growth).
- 4Royalty revenues surged by 45% year-over-year for the nine months, largely due to a significant increase in Tamiflu royalties from Roche, driven by global pandemic planning initiatives.
- 5Operating expenses increased by 35% for R&D and 15% for SG&A year-over-year for the nine months, reflecting investments in R&D reimbursements (Tibotec collaboration), restructuring costs associated with the CV Therapeutics acquisition, and increased headcount.
- 6The company maintained a strong balance sheet with $3.29 billion in cash, cash equivalents, and marketable securities as of September 30, 2009, and generated $2.12 billion in operating cash flow for the nine months.
- 7Gilead continues to actively manage its capital structure, repaying $200 million on its credit facility and repurchasing $756.5 million of its common stock during the nine months.