Summary
Gilead Sciences, Inc. (GILD) reported revenues of $7.5 billion for the third quarter of 2016, a decrease of 10% year-over-year, primarily driven by lower product sales, which fell to $7.4 billion from $8.2 billion in the prior year period. This decline was largely attributed to decreased sales of Hepatitis C (HCV) products like Harvoni and Sovaldi, partially offset by the new launch of Epclusa. Conversely, sales of HIV and other antiviral products saw a notable increase, driven by the uptake of newer tenofovir alafenamide (TAF)-based products such as Genvoya, Descovy, and Odefsey. Research and development (R&D) expenses increased significantly to $1.1 billion from $743 million in the prior year's quarter, mainly due to ongoing clinical studies and a milestone expense related to an acquisition. Net income attributable to Gilead decreased to $3.3 billion ($2.49 per diluted share) from $4.6 billion ($3.06 per diluted share) in the same quarter last year, impacted by lower sales and higher R&D costs. Despite the revenue decline, Gilead maintained a strong cash position, with $31.6 billion in cash, cash equivalents, and marketable securities as of September 30, 2016, and continued its aggressive share repurchase program.
Financial Highlights
58 data points| Revenue | $7.50B |
| Cost of Revenue | $1.13B |
| Gross Profit | $6.28B |
| R&D Expenses | $1.14B |
| SG&A Expenses | $831.00M |
| Operating Expenses | $3.10B |
| Operating Income | $4.40B |
| Interest Expense | $242.00M |
| Net Income | $3.33B |
| EPS (Basic) | $2.52 |
| EPS (Diluted) | $2.49 |
| Shares Outstanding (Basic) | 1.32B |
| Shares Outstanding (Diluted) | 1.34B |
Key Highlights
- 1Total revenues decreased by 10% to $7.5 billion for Q3 2016 compared to $8.2 billion in Q3 2015, primarily due to lower product sales.
- 2Antiviral product sales declined by 11% to $6.8 billion, driven by a significant decrease in Hepatitis C (HCV) product sales (Harvoni, Sovaldi), partially offset by the new launch of Epclusa.
- 3HIV and other antiviral product sales increased by 16% to $3.5 billion, propelled by the uptake of new TAF-based products (Genvoya, Descovy, Odefsey).
- 4Research and Development (R&D) expenses rose by 54% to $1.1 billion, largely due to increased clinical study progression and a milestone payment related to an acquisition.
- 5Net income attributable to Gilead decreased to $3.3 billion ($2.49 per diluted share) from $4.6 billion ($3.06 per diluted share) year-over-year.
- 6The company continued its substantial share repurchase activities, buying back shares for $1.0 billion in the third quarter and a total of $10.0 billion year-to-date.
- 7Cash, cash equivalents, and marketable securities stood at a strong $31.6 billion as of September 30, 2016.