Summary
Gilead Sciences, Inc. (GILD) reported its first-quarter 2012 financial results, showcasing robust revenue growth driven primarily by its antiviral franchise. Total revenues increased by 19% year-over-year to $2.28 billion, with product sales reaching $2.21 billion, up 19% from the prior year. This growth was largely fueled by strong performances from Atripla and Truvada, alongside the launch of Complera/Eviplera. The company also significantly advanced its strategic agenda with the completion of the $11.1 billion acquisition of Pharmasset, Inc., a move expected to bolster its Hepatitis C (HCV) portfolio and accelerate its development of all-oral HCV regimens. While net income saw a decline of 32% to $442 million, this was primarily due to a substantial $193.9 million charge for accelerated stock option vesting related to the Pharmasset acquisition, as well as increased interest expenses from new debt financing. The company continues to invest heavily in research and development, with R&D expenses increasing by 80% to $458.2 million, largely driven by the aforementioned acquisition-related stock compensation and ongoing clinical studies. Selling, General, and Administrative (SG&A) expenses also rose by 50% to $443.1 million, impacted by similar acquisition-related costs and increased pharmaceutical excise taxes. Despite these increased expenses and the significant cash outflow for the Pharmasset acquisition, Gilead's operating cash flow remained strong at $453 million, demonstrating its underlying business resilience.
Financial Highlights
54 data points| Revenue | $2.28B |
| Cost of Revenue | $580.93M |
| Gross Profit | $1.63B |
| R&D Expenses | $458.21M |
| SG&A Expenses | $443.12M |
| Operating Expenses | $1.48B |
| Operating Income | $800.19M |
| Interest Expense | $97.27M |
| Net Income | $441.96M |
| EPS (Basic) | $0.29 |
| EPS (Diluted) | $0.28 |
| Shares Outstanding (Basic) | 1.51B |
| Shares Outstanding (Diluted) | 1.55B |
Key Highlights
- 1Total revenues increased 19% to $2.28 billion in Q1 2012 compared to Q1 2011.
- 2Product sales grew 19% to $2.21 billion, primarily driven by the antiviral franchise (Atripla, Truvada, Complera/Eviplera).
- 3Completed the $11.1 billion acquisition of Pharmasset, Inc. in January 2012 to strengthen its Hepatitis C pipeline.
- 4Net income decreased 32% to $442 million, largely due to a $193.9 million stock-based compensation charge from the Pharmasset acquisition.
- 5Research and Development (R&D) expenses increased significantly by 80% to $458.2 million, primarily due to acquisition-related costs and ongoing clinical trials.
- 6Significant increase in long-term debt and credit facilities, totaling $9.43 billion as of March 31, 2012, to finance the Pharmasset acquisition.
- 7Accounts receivable in Southern Europe (Italy, Spain, Portugal, Greece) remain substantial at $1.25 billion, with a significant portion past due.