Summary
Gilead Sciences, Inc. (GILD) reported financial results for the second quarter ended June 30, 2017. Total revenues decreased by 8% year-over-year to $7.1 billion, primarily driven by a decline in antiviral product sales, particularly within the Hepatitis C (HCV) segment. While HIV and Hepatitis B (HBV) product sales showed growth, largely due to the uptake of newer tenofovir alafenamide (TAF)-based treatments, the decrease in HCV sales, attributed to a maturing market and increased competition, significantly impacted overall revenue. Net income attributable to Gilead for the quarter was $3.1 billion, or $2.33 per diluted share, a decrease from the prior year's $3.5 billion, or $2.58 per diluted share. This decline reflects the lower revenues, partially offset by reduced operating expenses, especially in Research & Development, and share repurchases which favorably impacted earnings per share. The company maintained a strong liquidity position with substantial cash, cash equivalents, and marketable securities totaling $36.6 billion.
Financial Highlights
57 data points| Revenue | $7.14B |
| Cost of Revenue | $1.13B |
| Gross Profit | $5.92B |
| R&D Expenses | $864.00M |
| SG&A Expenses | $897.00M |
| Operating Expenses | $2.89B |
| Operating Income | $4.25B |
| Interest Expense | $269.00M |
| Net Income | $3.07B |
| EPS (Basic) | $2.35 |
| EPS (Diluted) | $2.33 |
| Shares Outstanding (Basic) | 1.31B |
| Shares Outstanding (Diluted) | 1.32B |
Key Highlights
- 1Total revenues declined 8% year-over-year to $7.1 billion, largely due to a significant drop in Hepatitis C (HCV) product sales.
- 2HIV and Hepatitis B (HBV) product sales increased, driven by the adoption of TAF-based regimens like Genvoya and Descovy.
- 3Net income attributable to Gilead was $3.1 billion ($2.33 per diluted share), down from $3.5 billion ($2.58 per diluted share) in the prior year's quarter.
- 4Research and Development (R&D) expenses decreased by 42% year-over-year to $864 million, influenced by the prior year's acquisition-related expenses.
- 5Selling, General, and Administrative (SG&A) expenses remained relatively flat year-over-year.
- 6Gilead maintained a strong balance sheet with $36.6 billion in cash, cash equivalents, and marketable securities as of June 30, 2017.
- 7The company continued its share repurchase program, repurchasing $695 million worth of stock in the first six months of the year, with $8.3 billion remaining authorization.