Summary
Gilead Sciences, Inc. reported total revenues of $6.5 billion for the first quarter of 2017, a decrease of 17% compared to $7.8 billion in the same period of 2016. This decline was primarily driven by a significant drop in Hepatitis C (HCV) product sales, which fell by 19% year-over-year to $2.6 billion, mainly due to lower sales of Harvoni and Sovaldi. However, sales of HIV and Hepatitis B (HBV) products increased by 13% to $3.3 billion, bolstered by the uptake of TAF-based regimens like Genvoya and Descovy. Net income attributable to Gilead for the quarter was $2.7 billion, or $2.05 per diluted share, down from $3.6 billion, or $2.53 per diluted share, in Q1 2016. Despite the revenue challenges in HCV, the company maintained a strong cash position with $34.0 billion in cash, cash equivalents, and marketable securities as of March 31, 2017. Gilead continued its share repurchase program, buying back $565 million worth of stock in the quarter.
Financial Highlights
58 data points| Revenue | $6.50B |
| Cost of Revenue | $957.00M |
| Gross Profit | $5.42B |
| R&D Expenses | $931.00M |
| SG&A Expenses | $850.00M |
| Operating Expenses | $2.74B |
| Operating Income | $3.77B |
| Interest Expense | $261.00M |
| Net Income | $2.70B |
| EPS (Basic) | $2.07 |
| EPS (Diluted) | $2.05 |
| Shares Outstanding (Basic) | 1.31B |
| Shares Outstanding (Diluted) | 1.32B |
Key Highlights
- 1Total revenues decreased by 17% to $6.5 billion in Q1 2017 compared to $7.8 billion in Q1 2016.
- 2Hepatitis C (HCV) product sales declined significantly by 19% to $2.6 billion, primarily due to lower sales of Harvoni and Sovaldi, as the market shifts post-treatment cures.
- 3HIV and Hepatitis B (HBV) product sales grew by 13% to $3.3 billion, driven by the strong performance of newer TAF-based products such as Genvoya and Descovy.
- 4Net income attributable to Gilead was $2.7 billion ($2.05 per diluted share) in Q1 2017, down from $3.6 billion ($2.53 per diluted share) in Q1 2016.
- 5The company ended the quarter with a robust cash and marketable securities balance of $34.0 billion.
- 6Gilead repurchased $565 million of its common stock during the first quarter of 2017 under its existing share repurchase program.
- 7The company is facing significant litigation risks, notably a jury verdict of willful infringement related to sofosbuvir, with potential damages estimated between zero and $8.8 billion.