GILEAD SCIENCES, INC. Quarterly Report for Q1 Ended Mar 31, 2022

Summary

Gilead Sciences reported revenues of $6.59 billion for the first quarter of 2022, a 3% increase year-over-year. This growth was primarily driven by strong performance in HIV products, particularly Biktarvy, continued uptake of cell therapy products and Trodelvy, and increased sales of Veklury. However, net income attributable to Gilead stockholders significantly declined by 99% to $19 million ($0.02 per diluted share) compared to $1.7 billion ($1.37 per diluted share) in the prior year. The substantial decrease in net income was largely due to a $2.7 billion impairment charge related to in-process research and development assets acquired for Trodelvy. Despite this non-recurring charge, the company's operational performance showed resilience with revenue growth across key therapeutic areas. Gilead also continued its capital return strategy, repurchasing shares and paying dividends, while maintaining a strong cash position and managing its debt.

Key Highlights

• 1Total revenues increased by 3% to $6.59 billion for Q1 2022, driven by growth in HIV, cell therapy, and Veklury sales.
• 2Net income attributable to Gilead stockholders decreased by 99% to $19 million ($0.02 per diluted share) due to a significant $2.7 billion impairment charge for in-process R&D related to Trodelvy.
• 3HIV product sales grew 2% to $3.7 billion, with Biktarvy showing strong global demand.
• 4Cell therapy product sales surged 43% to $274 million, reflecting continued uptake of Yescarta and Tecartus.
• 5Trodelvy sales more than doubled, increasing by 103% to $146 million, driven by strong performance in metastatic breast and urothelial cancers.
• 6Gilead repaid $500 million in debt and continued its share repurchase program, returning capital to shareholders.
• 7The company ended the quarter with $4.3 billion in cash and cash equivalents, indicating a solid liquidity position.

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