Gilead Sciences Announces Third Quarter 2012 Financial Results

Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results of operations for the quarter ended September 30, 2012. Total revenues for the third quarter of 2012 increased 14 percent to $2.43 billion, from $2.12 billion for the third quarter of 2011. Net income for the third quarter of 2012 was $675.5 million, or $0.85 per diluted share compared to $741.1 million, or $0.95 per diluted share for the third quarter of 2011. Non-GAAP net income for the third quarter of 2012, which excludes acquisition-related, restructuring and stock-based compensation expenses, was $788.9 million, or $1.00 per diluted share compared to $795.2 million, or $1.02 per diluted share for the third quarter of 2011.

Product Sales

Product sales increased 14 percent to $2.36 billion for the third quarter of 2012 compared to $2.07 billion for the third quarter of 2011. This increase in product sales was due primarily to Gilead's antiviral franchise, resulting from increased sales of Complera ®/Eviplera ® (emtricitabine 200 mg/rilpivirine 25 mg/tenofovir disoproxil fumarate 300 mg), Atripla ® (efavirenz 600 mg/emtricitabine 200 mg/tenofovir disoproxil fumarate 300 mg) and Truvada ® (emtricitabine 200 mg/tenofovir disoproxil fumarate 300 mg) as well as the launch of Stribild TM (elvitegravir 150 mg/cobicistat 150 mg/emtricitabine 200 mg/tenofovir disoproxil fumarate 300 mg).

Antiviral Franchise

Antiviral product sales increased 13 percent to $2.04 billion for the third quarter of 2012, up from $1.79 billion for the third quarter of 2011, reflecting sales growth of 19 percent in the U.S. and 5 percent in Europe.
  • Atripla Sales of Atripla increased 9 percent to $865.4 million for the third quarter of 2012, up from $794.7 million for the third quarter of 2011, reflecting sales growth of 8 percent in the U.S. and 6 percent in Europe.
  • Truvada Sales of Truvada increased 8 percent to $804.2 million for the third quarter of 2012, up from $744.7 million for the third quarter of 2011, reflecting sales growth of 16 percent in the U.S. and 3 percent in Europe.
  • Viread Sales of Viread ® (tenofovir disoproxil fumarate) increased 11 percent to $214.9 million for the third quarter of 2012, up from $192.9 million for the third quarter of 2011, reflecting sales growth of 13 percent in the U.S. partially offset by a decrease of 1 percent in Europe.
  • Complera/Eviplera Sales of Complera/Eviplera grew more than fivefold to $99.3 million for the third quarter of 2012 compared to $19.0 million for the third quarter of 2011. Complera was approved in the U.S. in August 2011, and Eviplera was approved in the European Union in November 2011.
  • Stribild Sales of our newest product, Stribild, which was launched in the U.S. in August 2012, were $17.5 million for the third quarter of 2012.

Cardiopulmonary Franchise

Cardiopulmonary product sales increased 24 percent to $200.1 million for the third quarter of 2012, up from $160.9 million for the third quarter of 2011.
  • Letairis Sales of Letairis ® (ambrisentan) increased 33 percent to $105.1 million for the third quarter of 2012, up from $79.0 million for the third quarter of 2011.
  • Ranexa Sales of Ranexa ® (ranolazine) increased 16 percent to $95.1 million for the third quarter of 2012, up from $82.0 million for the third quarter of 2011.

Other Products

Sales of other products were $122.0 million for the third quarter of 2012 compared to $110.3 million for the third quarter of 2011 and included AmBisome ® (amphotericin B) liposome for injection and Cayston ® (aztreonam for inhalation solution).

Royalty, Contract and Other Revenues

Royalty, contract and other revenues were $68.6 million for the third quarter of 2012, up 23 percent from $55.8 million for the third quarter of 2011, due to an increase in royalty revenues, which included higher royalties from GlaxoSmithKline Inc. for Volibris ® and Japan Tobacco for Truvada.

Research and Development Expenses

Research and development (R&D) expenses for the third quarter of 2012 were $465.8 million compared to $290.1 million for the third quarter of 2011. Non-GAAP R&D expenses for the third quarter of 2012, which exclude acquisition-related, restructuring and stock-based compensation expenses, were $383.6 million compared to $269.3 million for the third quarter of 2011 due primarily to the continued advancement of Gilead's product pipeline, particularly in liver disease and oncology.

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