GILEAD SCIENCES, INC. Quarterly Report for Q3 Ended Sep 30, 2021

Summary

Gilead Sciences reported a strong third quarter of 2021, with total revenues increasing by 13% year-over-year to $7.4 billion. This growth was primarily driven by a significant surge in Veklury (remdesivir) sales, boosted by the ongoing COVID-19 pandemic, as well as continued growth in Biktarvy and the uptake of newer products like Trodelvy and cell therapies. Despite the strong revenue performance, investors should note the expected decline in HIV product sales due to generic competition following the loss of exclusivity for Truvada and Atripla. The company also reported a substantial increase in net income attributable to Gilead, largely due to lower acquired in-process R&D expenses compared to the prior year, which was impacted by significant acquisition-related charges. The balance sheet shows a decrease in cash and cash equivalents, reflecting debt repayments, dividend payments, and stock repurchases, alongside strategic investments.

Key Highlights

• 1Total revenues increased by 13% to $7.4 billion for the three months ended September 30, 2021, driven by Veklury sales.
• 2Net income attributable to Gilead was $2.6 billion, or $2.05 per diluted share, a significant increase from $360 million in the prior year's quarter.
• 3Veklury sales more than doubled, reaching $1.9 billion for the quarter, due to increased COVID-19 hospitalizations.
• 4HIV product sales saw an 8% decline, largely due to generic competition for Truvada and Atripla.
• 5Cell Therapy product sales increased by 51% to $222 million, reflecting strong demand for Yescarta and Tecartus.
• 6Acquired in-process R&D expenses significantly decreased to $19 million from $1.2 billion in the prior year's quarter.
• 7The company repaid $3.75 billion of debt and paid $2.7 billion in dividends during the nine months ended September 30, 2021.

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