Summary
Gilead Sciences, Inc. reported strong performance for the second quarter of 2011, with total revenues reaching $2.14 billion, a 11% increase year-over-year. Product sales were the primary driver, up 13% to $2.04 billion, fueled by robust demand for its HIV medications, particularly Atripla and Truvada, which saw 15% and 11% sales growth, respectively. This growth was observed across key geographies, including the United States and Europe, despite some headwinds like austerity measures in Europe and the impact of U.S. healthcare reform. The company also made significant strategic moves, including acquisitions of Arresto Biosciences and Calistoga Pharmaceuticals, bolstering its pipeline in oncology and inflammation. Gilead's financial position remains solid, with a substantial cash and marketable securities balance, and the company continued its share repurchase program. Despite the positive revenue trends, Gilead's cost of goods sold increased by 17% in the quarter, leading to a slight compression in gross margin to 74%. Research and Development (R&D) and Selling, General, and Administrative (SG&A) expenses also saw notable increases of 22% and 23%, respectively, driven by acquisitions, collaborations, and increased headcount. The company's effective tax rate decreased to 24.4% compared to the prior year. Overall, Gilead demonstrated strong operational performance, driven by its core antiviral franchise, while strategically investing in future growth through acquisitions and R&D.
Financial Highlights
50 data points| Revenue | $2.14B |
| Cost of Revenue | $533.86M |
| Gross Profit | $1.51B |
| SG&A Expenses | $304.27M |
| Operating Expenses | $1.12B |
| Operating Income | $1.02B |
| Interest Expense | $46.11M |
| Net Income | $746.23M |
| EPS (Basic) | $0.48 |
| EPS (Diluted) | $0.47 |
| Shares Outstanding (Basic) | 1.57B |
| Shares Outstanding (Diluted) | 1.60B |
Key Highlights
- 1Total revenues increased by 11% to $2.14 billion for Q2 2011, driven by strong product sales.
- 2Product sales grew 13% to $2.04 billion, with HIV products (Atripla and Truvada) leading the growth at 15% and 11% respectively.
- 3Acquisitions of Arresto Biosciences and Calistoga Pharmaceuticals were completed, strengthening the pipeline in oncology and inflammation.
- 4Operating income decreased by 2% to $1.02 billion, impacted by increased R&D and SG&A expenses.
- 5Net income attributable to Gilead increased by 4.7% to $746.2 million, or $0.93 per diluted share.
- 6The company repurchased $1.27 billion of its common stock in the first six months of 2011 under its share repurchase program.
- 7Cash and cash equivalents and marketable securities increased to $5.5 billion at the end of Q2 2011.