Summary
Gilead Sciences, Inc. reported revenues of $5,604 million for the third quarter of 2019, a slight increase from $5,596 million in the prior year period, driven by higher product sales, particularly in HIV. However, the company posted a net loss of $1.2 billion, or $0.92 per share, for the quarter. This loss was primarily attributable to a significant $3.92 billion up-front payment related to the Option, License and Collaboration Agreement with Galapagos NV, which also included an equity investment of $1.13 billion. Despite the quarterly loss, Gilead's cash position remains robust, with $25.1 billion in cash, cash equivalents, and marketable debt securities as of September 30, 2019. The company's HIV product sales showed strong growth, increasing by 13% year-over-year, largely due to the uptake of Biktarvy. Conversely, HCV product sales continued to decline, down 25%, impacted by increased competition and pricing pressures. R&D expenses saw a substantial increase due to the Galapagos collaboration, while SG&A expenses rose moderately to support international expansion. Investors should note the ongoing litigation related to key products and the company's dependence on HIV and HCV revenues, alongside efforts to diversify through pipeline development and strategic partnerships.
Financial Highlights
57 data points| Revenue | $5.60B |
| Cost of Revenue | $1.03B |
| Gross Profit | $4.48B |
| R&D Expenses | $4.99B |
| SG&A Expenses | $1.05B |
| Operating Expenses | $7.08B |
| Operating Income | -$1.47B |
| Interest Expense | $250.00M |
| Net Income | -$1.17B |
| EPS (Basic) | $-0.92 |
| EPS (Diluted) | $-0.92 |
| Shares Outstanding (Basic) | 1.27B |
| Shares Outstanding (Diluted) | 1.27B |
Key Highlights
- 1Total revenues for Q3 2019 were $5.604 billion, a slight increase of 0.1% year-over-year, primarily driven by product sales.
- 2Net loss attributable to Gilead for Q3 2019 was $1.165 billion (loss of $0.92 per share), compared to a net income of $2.097 billion (income of $1.60 per diluted share) in Q3 2018, largely due to significant R&D expenses related to the Galapagos collaboration.
- 3HIV product sales increased by 13% to $4.2 billion in Q3 2019, fueled by strong uptake of Biktarvy and increased usage of Truvada for PrEP.
- 4Hepatitis C Virus (HCV) product sales decreased by 25% to $674 million in Q3 2019, impacted by increased competition and pricing pressures.
- 5Research and Development (R&D) expenses surged 431% to $5.0 billion in Q3 2019, mainly due to a $3.92 billion up-front payment for the Galapagos collaboration.
- 6Cash, cash equivalents, and marketable debt securities stood at $25.1 billion as of September 30, 2019, although this represents a decrease from $31.5 billion at the end of 2018.
- 7The company announced the approval of Descovy for PrEP by the U.S. FDA and continued advancement of its filgotinib pipeline for rheumatoid arthritis.