Gilead Sciences Announces Third Quarter 2013 Financial Results

Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results of operations for the quarter ended September 30, 2013. Total revenues for the third quarter of 2013 increased 15 percent to $2.78 billion, from $2.43 billion for the third quarter of 2012. Product sales increased 15 percent to $2.71 billion for the third quarter of 2013 compared to $2.36 billion for the third quarter of 2012. Net income for the third quarter of 2013 was $788.6 million, or $0.47 per diluted share compared to $675.5 million, or $0.43 per diluted share for the third quarter of 2012. Non-GAAP net income for the third quarter of 2013, which excludes acquisition-related, restructuring and stock-based compensation expenses, was $879.1 million, or $0.52 per diluted share compared to $788.9 million, or $0.50 per diluted share for the third quarter of 2012.
  Three Months Ended   Nine Months Ended
September 30, September 30,
(In thousands, except per share amounts)   2013   2012 2013   2012
Product sales $ 2,709,652 $ 2,357,978 $ 7,760,505 $ 6,887,560
Royalty, contract and other revenues 73,181   68,619   321,357   226,672
Total revenues $ 2,782,833   $ 2,426,597   $ 8,081,862   $ 7,114,232
 
Net income attributable to Gilead $ 788,606 $ 675,505 $ 2,283,397 $ 1,829,025
Non-GAAP net income attributable to Gilead $ 879,081 $ 788,940 $ 2,520,749 $ 2,260,606
 
Diluted EPS $ 0.47 $ 0.43 $ 1.35 $ 1.17
Non-GAAP diluted EPS $ 0.52 $ 0.50 $ 1.49 $ 1.44
 

Product Sales

Product sales were driven primarily by growth in Gilead's antiviral franchise during the third quarter of 2013. Significantly contributing to the increase were sales of Stribild ® (elvitegravir 150 mg/cobicistat 150 mg/emtricitabine 200 mg/tenofovir disoproxil fumarate 300 mg) which launched in the third quarter of 2012 and sales of Complera ®/Eviplera ® (emtricitabine 200 mg/rilpivirine 25 mg/tenofovir disoproxil fumarate 300 mg). Product sales for the third quarter increased 20 percent in the U.S. and 5 percent in Europe compared to the third quarter of 2012.

Antiviral Product Sales

Antiviral product sales increased 14 percent to $2.33 billion for the third quarter of 2013, up from $2.04 billion for the third quarter of 2012, reflecting sales growth of 19 percent in the U.S. and 6 percent in Europe. The increase reflects strong underlying demand for our new single tablet regimen products, specifically Stribild and Complera/Eviplera.
  Three Months Ended     Nine Months Ended  
September 30, September 30,
(In thousands, except percentages) 2013   2012 % Change 2013   2012 % Change
Antiviral product sales $ 2,326,727 $ 2,035,833 14 % $ 6,700,052 $ 5,973,922 12 %
Atripla 899,669 865,378 4 % 2,714,850 2,656,997 2 %
Truvada 813,652 804,190 1 % 2,321,673 2,348,386 (1 )%
Viread 231,555 214,909 8 % 692,075 622,016 11 %
Complera/Eviplera 210,736 99,297 112 % 547,608 224,386 144 %
Stribild 143,953 17,511 722 % 335,495 17,511 1,816 %
 

Cardiovascular Product Sales

Cardiovascular product sales increased 25 percent to $250.9 million for the third quarter of 2013.
  Three Months Ended     Nine Months Ended  
September 30, September 30,
(In thousands, except percentages) 2013   2012 % Change 2013   2012 % Change
Cardiovascular product sales $ 250,887 $ 200,120 25 % $ 700,134 $ 567,798 23 %
Letairis 135,072 105,054 29 % 381,436 293,976 30 %
Ranexa 115,815 95,066 22 % 318,698 273,822 16 %
 

Operating Expenses and Other

Non-GAAP research and development (R&D) expenses increased due to the progression of Gilead's clinical studies, particularly in oncology and HIV. Non-GAAP selling, general and administrative (SG&A) expenses increased primarily due to the ongoing growth and expansion of Gilead's business in preparation for the anticipated launch of sofosbuvir.

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