Early Access

10-QPeriod: Q2 FY2021

GILEAD SCIENCES, INC. Quarterly Report for Q2 Ended Jun 30, 2021

Filed August 5, 2021For Securities:GILD

Summary

Gilead Sciences, Inc. reported robust financial results for the second quarter and first half of 2021, demonstrating significant revenue growth and a return to profitability compared to the prior year. Total revenues increased by 21% year-over-year for the quarter and 18% for the first half, primarily driven by strong sales of Veklury (remdesivir) for COVID-19 treatment, alongside continued growth in Biktarvy for HIV, and solid performance in Cell Therapy and other product categories. The company has shown a substantial improvement in profitability, with net income attributable to Gilead reaching $1.5 billion for the quarter and $3.3 billion for the first half, a significant turnaround from the net losses reported in the same periods of 2020. This improvement is largely due to strong revenue growth and the absence of significant one-time charges, such as the large acquired IPR&D expense recorded in Q2 2020. Gilead continues to manage its debt effectively and maintain a strong liquidity position, supported by consistent operating cash flow.

Financial Statements
Beta
Revenue$6.22B
Cost of Revenue$1.39B
Gross Profit$4.83B
SG&A Expenses$1.35B
Operating Expenses$3.97B
Operating Income$2.25B
Interest Expense$256.00M
Net Income$1.52B
EPS (Basic)$1.21
EPS (Diluted)$1.21
Shares Outstanding (Basic)1.25B
Shares Outstanding (Diluted)1.26B

Key Highlights

  • 1Total revenues increased by 21% to $6.2 billion in Q2 2021 and by 18% to $12.6 billion in the first half of 2021, primarily driven by Veklury sales.
  • 2Net income attributable to Gilead was $1.5 billion ($1.21 EPS) in Q2 2021, a significant improvement from a net loss of $3.3 billion ($2.66 loss EPS) in Q2 2020.
  • 3HIV product sales saw a slight decrease of 2% to $3.9 billion in Q2 2021, impacted by expected generic competition for Truvada and Atripla, but Biktarvy demonstrated strong growth.
  • 4Veklury (remdesivir) sales were $829 million in Q2 2021 and $2.3 billion in the first half, with no comparable sales in the prior year.
  • 5Cell Therapy product sales increased by 39% to $219 million in Q2 2021, driven by Yescarta and the launch of Tecartus.
  • 6The company repurchased approximately 0.7 million shares for $43 million in Q2 2021, with $6.5 billion remaining authorization for stock repurchases.
  • 7Cash flow from operations remained strong, totaling $4.9 billion for the first half of 2021.

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