Summary
Gilead Sciences, Inc. reported strong financial performance for the nine months ended September 30, 2012. Total revenues grew 15% year-over-year to $7.11 billion, driven by a 15% increase in product sales to $6.89 billion. This growth was primarily fueled by the company's antiviral franchise, with significant contributions from Atripla and Truvada. The company's financial results were significantly impacted by the acquisition of Pharmasset, Inc. for $11.1 billion in January 2012, which added substantial intangible assets. While this acquisition led to increased R&D and interest expenses, Gilead maintained a healthy product gross margin of 74% for the nine-month period. Despite a decrease in net income due to these investments and increased debt, diluted earnings per share remained robust. The company ended the period with $2.65 billion in cash, cash equivalents, and marketable securities, indicating solid liquidity to fund ongoing operations and strategic initiatives.
Financial Highlights
53 data points| Revenue | $2.43B |
| Cost of Revenue | $597.27M |
| Gross Profit | $1.76B |
| R&D Expenses | $465.83M |
| SG&A Expenses | $319.58M |
| Operating Expenses | $1.38B |
| Operating Income | $1.04B |
| Interest Expense | $89.32M |
| Net Income | $675.50M |
| EPS (Basic) | $0.45 |
| EPS (Diluted) | $0.43 |
| Shares Outstanding (Basic) | 1.51B |
| Shares Outstanding (Diluted) | 1.58B |
Key Highlights
- 1Total revenues increased by 15% to $7.11 billion for the nine months ended September 30, 2012, compared to $6.19 billion in the prior year period.
- 2Product sales grew by 15% to $6.89 billion for the nine months ended September 30, 2012, driven by the antiviral franchise, particularly Atripla and Truvada.
- 3The significant acquisition of Pharmasset, Inc. for $11.1 billion in January 2012 resulted in a substantial increase in intangible assets and goodwill.
- 4Despite increased R&D and interest expenses related to the Pharmasset acquisition, Gilead maintained a product gross margin of 74% for the nine-month period.
- 5Net income attributable to Gilead decreased to $1.83 billion for the nine months ended September 30, 2012, from $2.14 billion in the prior year, primarily due to increased investment and financing costs.
- 6Diluted earnings per share decreased to $2.33 for the nine months ended September 30, 2012, from $2.66 in the prior year, impacted by lower net income and increased diluted shares outstanding.
- 7Cash, cash equivalents, and marketable securities decreased to $2.65 billion at September 30, 2012, from $9.96 billion at December 31, 2011, largely due to the Pharmasset acquisition.