Summary
Gilead Sciences, Inc. reported a net loss of $3.3 billion for the second quarter of 2020, a significant shift from a net income of $1.9 billion in the prior year period. This loss was primarily driven by a $4.5 billion charge for acquired in-process research and development related to the acquisition of Forty Seven, Inc. Total revenues decreased by 10% year-over-year to $5.1 billion, largely due to lower sales of Hepatitis C (HCV) products impacted by the COVID-19 pandemic, as well as a decline in sales for Letairis and Ranexa following generic entries. Despite the quarterly loss, the company highlighted ongoing progress in its strategic initiatives, including advancing its immuno-oncology pipeline through acquisitions and collaborations such as Forty Seven, Arcus Biosciences, Pionyr Immunotherapeutics, and Tizona Therapeutics. Gilead also continued to focus on remdesivir (Veklury) for COVID-19, securing regulatory approvals and authorizations in key markets and expanding manufacturing capacity. While the pandemic impacted sales volumes across several therapeutic areas, the core HIV franchise showed underlying demand growth, with strong uptake of Biktarvy and Descovy for PrEP.
Financial Highlights
57 data points| Revenue | $5.14B |
| Cost of Revenue | $1.06B |
| Gross Profit | $4.00B |
| SG&A Expenses | $1.24B |
| Operating Expenses | $8.13B |
| Operating Income | -$2.98B |
| Interest Expense | $240.00M |
| Net Income | -$3.34B |
| EPS (Basic) | $-2.66 |
| EPS (Diluted) | $-2.66 |
| Shares Outstanding (Basic) | 1.25B |
| Shares Outstanding (Diluted) | 1.25B |
Key Highlights
- 1Net loss of $3.3 billion ($2.66 per diluted share) in Q2 2020, compared to a net income of $1.9 billion ($1.47 per diluted share) in Q2 2019, primarily due to a $4.5 billion charge for acquired in-process R&D from the Forty Seven acquisition.
- 2Total revenues decreased 10% to $5.1 billion in Q2 2020 compared to $5.7 billion in Q2 2019, driven by lower product sales, particularly in HCV, impacted by COVID-19.
- 3Acquired in-process R&D expenses significantly increased due to the $4.5 billion charge from the Forty Seven acquisition, impacting overall profitability.
- 4Product sales for the core HIV franchise demonstrated resilience, with underlying demand growth and continued uptake of Biktarvy and Descovy for PrEP.
- 5HCV product sales declined by 47% in Q2 2020, attributed to fewer healthcare provider visits and screenings due to the COVID-19 pandemic.
- 6Significant advancements in the immuno-oncology pipeline through acquisitions and collaborations, including Forty Seven, Arcus Biosciences, Pionyr Immunotherapeutics, and Tizona Therapeutics.
- 7Continued focus on remdesivir (Veklury) for COVID-19, with regulatory approvals/authorizations obtained in the US, Europe, and Japan, and expansion of manufacturing capacity.