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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): February 6, 2024
GILEAD SCIENCES, INC.
(Exact name of registrant as specified in its charter)
Delaware 000-19731 94-3047598
(State or Other Jurisdiction of Incorporation) (Commission File No.) (IRS Employer Identification No.)

333 Lakeside Drive, Foster City, California
(Address of principal executive offices)
94404
(Zip Code)
650-574-3000
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value, $0.001 per share GILD The Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨




Section 2 - FINANCIAL INFORMATION

Item 2.02     Results of Operations and Financial Condition.

On February 6, 2024, Gilead Sciences, Inc., a Delaware corporation (“Gilead”), issued a press release announcing its financial results for the quarter and year ended December 31, 2023. A copy of the press release is filed as Exhibit 99.1 to this report.

Gilead has presented certain financial information in accordance with U.S. generally accepted accounting principles (“GAAP”) and also on a non-GAAP basis. Management believes this non-GAAP information is useful for investors, when considered in conjunction with Gilead’s GAAP financial statements, because management uses such information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of Gilead’s operating results as reported under GAAP. Non-GAAP measures may be defined and calculated differently by other companies in the same industry. A reconciliation between GAAP and non-GAAP financial information is provided in the tables on pages 10, 11 and 12 of the press release filed as Exhibit 99.1 to this report.

The information in Item 2.02 and Item 9.01 of this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Section 9 - FINANCIAL STATEMENTS AND EXHIBITS

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits
Exhibit Number Description
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)







SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GILEAD SCIENCES, INC.
(Registrant)
/s/ ANDREW D. DICKINSON
Andrew D. Dickinson
Chief Financial Officer
Date: February 6, 2024

        







Exhibit Index
Exhibit Number Description
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)



EX-99.1 2 exhibit991earningspressrel.htm EXHIBIT 99.1 Document

gilead_transparentxlogoxst.jpg
GILEAD SCIENCES ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS
Product Sales Excluding Veklury Increased Year-Over-Year by 7% for Full Year 2023
Biktarvy Sales Increased Year-Over-Year by 14% for Full Year 2023
Oncology Sales Increased Year-Over-Year by 37% for Full Year 2023
Foster City, CA, February 6, 2024 - Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results of operations for the fourth quarter and full year 2023.
“This was another strong year of revenue growth for Gilead’s base business, driven by both HIV and Oncology,” said Daniel O’Day, Gilead’s Chairman and Chief Executive Officer. “The strength of the business provides a solid foundation as we enter a new catalyst-rich phase for the company. We are expecting several milestones in 2024, including updates on long-acting HIV prevention and treatment, Cell Therapy and Trodelvy.”
Fourth Quarter 2023 Financial Results
•Total fourth quarter 2023 revenue decreased 4% to $7.1 billion compared to the same period in 2022, primarily due to lower Veklury® (remdesivir) and HIV sales, partially offset by higher Oncology sales.
•Diluted Earnings Per Share (“EPS”) decreased to $1.14 in the fourth quarter 2023 compared to $1.30 in the same period in 2022, primarily due to higher total costs and expenses, and lower Veklury revenues, partially offset by unrealized gains on equity investments in 2023 compared to losses in 2022, and lower tax expense.
•Non-GAAP diluted EPS increased to $1.72 in the fourth quarter 2023 compared to $1.67 in the same period in 2022, primarily due to lower total costs and expenses, partially offset by lower Veklury revenues.
•As of December 31, 2023, Gilead had $8.4 billion of cash, cash equivalents and marketable debt securities compared to $7.6 billion as of December 31, 2022.
•During the fourth quarter 2023, Gilead generated $2.2 billion in operating cash flow.
•During the fourth quarter 2023, Gilead paid cash dividends of $943 million and utilized $150 million to repurchase common stock.
Fourth Quarter 2023 Product Sales
Total fourth quarter 2023 product sales decreased 4% to $7.1 billion compared to the same period in 2022. Total product sales, excluding Veklury, of $6.3 billion were flat compared to the same period in 2022, with higher Oncology sales partially offset by lower HIV sales.
HIV product sales decreased 2% to $4.7 billion in the fourth quarter 2023 compared to the same period in 2022, primarily driven by lower average realized price due to channel mix, partially offset by higher demand and channel inventory dynamics.
•Biktarvy® (bictegravir 50mg/emtricitabine (“FTC”) 200mg/tenofovir alafenamide (“TAF”) 25mg) sales increased 7% to $3.1 billion in the fourth quarter 2023 compared to the same period in 2022, primarily reflecting higher demand, partially offset by lower average realized price due to channel mix.
•Descovy® (FTC 200mg/TAF 25mg) sales decreased 5% to $509 million in the fourth quarter 2023 compared to the same period in 2022, primarily driven by unfavorable pricing dynamics in the United States, partially offset by higher demand and channel inventory dynamics.



February 6, 2024
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The Liver Disease portfolio sales were $691 million in the fourth quarter 2023 and remained flat compared to the same period in 2022. Sales were impacted by unfavorable pricing dynamics, offset by higher demand across chronic hepatitis C virus (“HCV”) and chronic hepatitis delta virus (“HDV”) products.
Cell Therapy product sales increased 11% to $466 million in the fourth quarter 2023 compared to the same period in 2022.
•Yescarta® (axicabtagene ciloleucel) sales increased 9% to $368 million in the fourth quarter 2023 compared to the same period in 2022, primarily driven by strong demand in relapsed or refractory (“R/R”) large B-cell lymphoma (“LBCL”) outside the United States.
•Tecartus® (brexucabtagene autoleucel) sales increased 19% to $98 million in the fourth quarter 2023 compared to the same period in 2022, driven by increased demand in R/R adult acute lymphoblastic leukemia (“ALL”) and in R/R mantle cell lymphoma (“MCL”).
Trodelvy® (sacituzumab govitecan-hziy) sales increased 53% to $299 million in the fourth quarter 2023 compared to the same period in 2022, reflecting higher demand in both the United States and Europe.
Veklury sales decreased 28% to $720 million in the fourth quarter 2023 compared to the same period in 2022, primarily driven by lower rates of COVID-19 related hospitalizations. Veklury sales generally reflect COVID-19 related rates and severity of infections and hospitalizations, as well as the availability, uptake and effectiveness of vaccinations and alternative treatments for COVID-19.
Fourth Quarter 2023 Product Gross Margin, Operating Expenses and Tax
•Product gross margin was 70.4% in the fourth quarter 2023 compared to 81.0% in the same period in 2022, primarily driven by restructuring expenses related to changes in our manufacturing strategy, intangible asset amortization expenses related to Trodelvy following approval for pretreated HR+/HER2- metastatic breast cancer in February 2023, and product mix. Non-GAAP product gross margin was 86.1% in the fourth quarter 2023 compared to 86.8% in the same period in 2022, primarily driven by product mix.
•Research and development (“R&D”) expenses were $1.4 billion in the fourth quarter 2023 compared to $1.5 billion in the same period in 2022, driven by the timing of clinical activities and valuation adjustments to the MYR-related contingent consideration, partially offset by increased investments in Oncology. Non-GAAP R&D expenses were $1.5 billion in the fourth quarter 2023 and in the same period in 2022. Decreases due to the timing of clinical activities were offset by increased investments in Oncology.
•Acquired in-process research and development (“IPR&D”) expenses were $347 million in the fourth quarter 2023, primarily driven by payments related to collaborations with Arcellx, Inc. (“Arcellx”), Assembly Biosciences, Inc. (“Assembly”), and Compugen Ltd. (“Compugen”), as well as a milestone payment related to the acquisition of XinThera, Inc. (“XinThera”).
•Selling, general and administrative (“SG&A”) and non-GAAP SG&A expenses were $1.6 billion in the fourth quarter 2023 compared to $2.0 billion in the same period in 2022. The decrease was primarily driven by a 2022 charge related to the termination of the Trodelvy collaboration agreement with Everest Medicines (“Everest”) that did not repeat.
•The effective tax rate (“ETR”) was 14.3% in the fourth quarter 2023 compared to 19.6% in the same period in 2022, primarily due to remeasurement of certain deferred tax liabilities and non-taxable unrealized gains on equity investments. Non-GAAP ETR was 17.1% in the fourth quarter 2023 compared to 16.8% in the same period in 2022.
Full Year 2023 Financial Results
•Total full year 2023 revenue decreased 1% to $27.1 billion compared to 2022, driven by a reduction of $1.7 billion in Veklury sales, largely offset by higher HIV and Oncology sales.


February 6, 2024
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•Diluted EPS increased to $4.50 in the full year 2023 compared to $3.64 in 2022, primarily due to lower IPR&D impairment expenses, lower unrealized losses on equity investments, and higher interest income, partially offset by higher cost of goods sold and operating expenses, and lower Veklury sales.
•Non-GAAP diluted EPS decreased to $6.72 in the full year 2023 compared to $7.26 in 2022. This was primarily driven by higher total costs and expenses, as well as lower Veklury sales, partially offset by a decrease in tax reserves as a result of reaching an agreement with a tax authority, and higher interest income.
Full Year 2023 Product Sales
Total full year 2023 product sales of $26.9 billion were relatively flat compared to the same period in 2022, with lower Veklury sales largely offset by higher HIV and Oncology sales. Total product sales, excluding Veklury, increased 7% to $24.7 billion in the full year 2023 compared to 2022, primarily driven by higher HIV and Oncology sales.
HIV product sales increased 6% to $18.2 billion in the full year 2023 compared to 2022, primarily reflecting higher demand across treatment and prevention, in addition to higher average realized price and favorable channel inventory dynamics.
•Biktarvy sales increased 14% to $11.8 billion in the full year 2023 compared to 2022, primarily reflecting higher demand as well as higher average realized price.
•Descovy sales increased 6% to $2.0 billion in the full year 2023 compared to 2022, primarily driven by favorable channel inventory dynamics and higher demand.
The Liver Disease portfolio sales decreased 1% to $2.8 billion in the full year 2023 compared to 2022. The decrease was primarily driven by unfavorable HCV pricing dynamics and foreign exchange rates, partially offset by higher demand across HCV, HDV and chronic hepatitis B virus (“HBV”) products.
Cell Therapy product sales increased 28% to $1.9 billion in the full year 2023 compared to 2022.
•Yescarta sales increased 29% to $1.5 billion in the full year 2023 compared to 2022, primarily driven by increased demand in R/R LBCL.
•Tecartus sales increased 24% to $370 million in the full year 2023 compared to 2022, primarily driven by increased demand in in R/R ALL and R/R MCL.
Trodelvy sales increased 56% to $1.1 billion in the full year 2023 compared to 2022, reflecting strong demand in new and existing geographies.
Veklury sales decreased 44% to $2.2 billion in the full year 2023 compared to 2022, primarily driven by lower rates of COVID-19 related hospitalizations in all regions.
Full Year 2023 Product Gross Margin, Operating Expenses and Tax
•Product gross margin was 75.9% in the full year 2023 compared to 79.0% in 2022, primarily driven by restructuring expenses related to the aforementioned changes in our manufacturing strategy, increased amortization expenses, and product mix. Non-GAAP product gross margin was 86.3% in the full year 2023 compared to 86.6% in 2022, primarily driven by product mix.
•R&D and non-GAAP R&D expenses were $5.7 billion in the full year 2023 compared to $5.0 billion in 2022. This primarily reflects increased clinical activities across our Oncology and Virology programs.
•Acquired IPR&D expenses were $1.2 billion in the full year 2023, primarily driven by payments related to the collaboration with Arcellx, as well as the acquisition of XinThera and Tmunity Therapeutics Inc. (“Tmunity”).


February 6, 2024
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•SG&A expenses were $6.1 billion in the full year 2023 compared to $5.7 billion in 2022. Non-GAAP SG&A expenses were $6.1 billion in the full year 2023 compared to $5.6 billion in 2022. The increases in SG&A and non-GAAP SG&A expenses are primarily due to a $525 million litigation settlement with certain plaintiffs in the HIV antitrust litigation and increased commercial activities in Oncology and HIV, partially offset by the 2022 charge related to the termination of the Trodelvy collaboration agreement with Everest.
•The ETR and non-GAAP ETR were 18.2% and 15.2%, respectively, in the full year 2023 compared to 21.5% and 19.3%, respectively, in 2022. Lower ETR is primarily due to a decrease in tax reserves as a result of reaching agreement with a tax authority on certain tax positions.
Guidance and Outlook
Gilead is providing full-year 2024 guidance below:
•Total product sales between $27.1 billion and $27.5 billion.
•Total product sales, excluding Veklury, between $25.8 billion and $26.2 billion.
•Total Veklury sales of approximately $1.3 billion.
•Diluted EPS between $5.15 and $5.55.
•Non-GAAP diluted EPS between $6.85 and $7.25.
Additional information and a reconciliation between GAAP and non-GAAP financial information for the 2024 guidance is provided in the accompanying tables. The financial guidance is subject to a number of risks and uncertainties. See the Forward-Looking Statements section below.
Key Updates Since Our Last Quarterly Release
Virology
•Announced that the Phase 3 OAKTREE trial of obeldesivir in non-hospitalized participants without risk factors for developing severe COVID-19 did not meet its primary endpoint of improvement in time to symptom alleviation. Obeldesivir was well-tolerated in this large study population.
Oncology
•Announced that the Phase 3 EVOKE-01 study of Trodelvy versus docetaxel in previously treated metastatic non-small cell lung cancer did not meet its primary endpoint of overall survival. While not statistically powered, we observed an encouraging trend in a subgroup of patients non-responsive to prior anti-PD-(L)1 immunotherapy, that we may potentially explore further.
•Presented new data at the San Antonio Breast Cancer Symposium 2023, including a post-hoc, subgroup analysis of clinical outcomes by age from the Phase 3 TROPiCS-02 study of Trodelvy in HR+/HER2- metastatic breast cancer.
•Presented new data at the American Society of Hematology 2023 Annual Meeting (“ASH”) including long-term follow-up across Yescarta trials in R/R LBCL, first-line high-risk LBCL, and R/R follicular lymphoma, as well as real-world data for Tecartus in R/R MCL and B-cell ALL.
•Received U.S. Food and Drug Administration (“FDA”) approval of Yescarta’s label update to include overall survival (“OS”) data from the Phase 3 ZUMA-7 study, which showed a statistically significant OS improvement for Yescarta in second-line R/R LBCL versus standard of care.
•Received FDA approval of a manufacturing process change resulting in reduced median turnaround time for Yescarta in the U.S. to an anticipated 14 days (from 16 days previously).
•Our partner Arcellx presented updated data at ASH from the Phase 1 trial evaluating anitocabtagene autoleucel (“anito-cel”) in R/R multiple myeloma. With 26.5 months of median follow-up, the data demonstrated continued deep and durable responses, including in patients with extramedullary disease, with median progression-free survival not reached. In addition, no cases of delayed neurotoxicity events or parkinsonian symptoms were observed.


February 6, 2024
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•Announced expansion of the Arcellx collaboration to include exercising an option for the ARC-SparX ACLX-001 program in multiple myeloma, expanding the scope of the existing anito-cel collaboration to include lymphomas, and a further equity investment of $200 million.
•Announced an amended collaboration agreement with Arcus Biosciences, Inc. (“Arcus”), including an update to the domvanalimab development collaboration program, and an additional $320 million equity investment.
•Announced an exclusive license agreement with Compugen for later-stage development and commercialization of novel pre-clinical anti-IL18 binding protein antibodies, including COM503, that have the potential to treat various tumor types.
Corporate
•Announced that Ted Love has joined Gilead’s Board of Directors.
•Named to Dow Jones Sustainability World Index for third consecutive year and added to the North America Index for the first year, reflecting Gilead’s ongoing commitment to corporate responsibility and sustainability.
•The company’s Board of Directors declared a quarterly dividend of $0.77 per share of common stock for the first quarter of 2024. The dividend is payable on March 28, 2024, to stockholders of record at the close of business on March 15, 2024. Future dividends will be subject to Board approval.
Certain amounts and percentages in this press release may not sum or recalculate due to rounding.
Conference Call
At 2:00 p.m. Pacific Time today, Gilead will host a conference call to discuss Gilead’s results. A live webcast will be available on http://investors.gilead.com and will be archived on www.gilead.com for one year.
Non-GAAP Financial Information
The information presented in this document has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), unless otherwise noted as non-GAAP. Management believes non-GAAP information is useful for investors, when considered in conjunction with Gilead’s GAAP financial information, because management uses such information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of Gilead’s operating results as reported under GAAP. Non-GAAP financial information generally excludes acquisition-related expenses including amortization of acquired intangible assets and inventory step-up charges, and other items that are considered unusual or not representative of underlying trends of Gilead’s business, fair value adjustments of equity securities and discrete and related tax charges or benefits associated with changes in tax related laws and guidelines. Although Gilead consistently excludes the amortization of acquired intangible assets from the non-GAAP financial information, management believes that it is important for investors to understand that such intangible assets were recorded as part of acquisitions and contribute to ongoing revenue generation. Non-GAAP measures may be defined and calculated differently by other companies in the same industry. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the accompanying tables.
About Gilead Sciences
Gilead Sciences, Inc. is a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people. The company is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19 and cancer. Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, California.


February 6, 2024
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Forward-Looking Statements
Statements included in this press release that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Gilead cautions readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include those relating to: Gilead’s ability to achieve its anticipated full year 2024 financial results, including as a result of the uncertainty of the amount and timing of Veklury revenues; Gilead’s ability to make progress on any of its long-term ambitions or strategic priorities laid out in its corporate strategy; Gilead’s ability to accelerate or sustain revenues for its virology, oncology and other programs; Gilead’s ability to realize the potential benefits of acquisitions, collaborations or licensing arrangements, including the arrangements with Arcellx, Arcus, Assembly, Compugen, Galapagos NV, MYR, Tmunity, and XinThera; patent protection and estimated loss of exclusivity for our products and product candidates; Gilead’s ability to initiate, progress or complete clinical trials within currently anticipated timeframes or at all, the possibility of unfavorable results from ongoing and additional clinical trials, including those involving Tecartus, Trodelvy (including EVOKE-01), Yescarta, anito-cel and domvanalimab, and the risk that safety and efficacy data from clinical trials may not warrant further development of Gilead’s product candidates or the product candidates of Gilead’s strategic partners; Gilead’s ability to submit new drug applications for new product candidates or expanded indications in the currently anticipated timelines; Gilead’s ability to receive regulatory approvals in a timely manner or at all, and the risk that any such approvals, if granted, may be subject to significant limitations on use; Gilead’s ability to successfully commercialize its products; the risk of potential disruptions to the manufacturing and supply chain of Gilead’s products; pricing and reimbursement pressures from government agencies and other third parties, including required rebates and other discounts; a larger than anticipated shift in payer mix to more highly discounted payer segments; market share and price erosion caused by the introduction of generic versions of Gilead products; the risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products, including Yescarta; and other risks identified from time to time in Gilead’s reports filed with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, Gilead makes estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. Gilead bases its estimates on historical experience and on various other market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There may be other factors of which Gilead is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ significantly from these estimates. Further, results for the quarter ended December 31, 2023 are not necessarily indicative of operating results for any future periods. Gilead directs readers to its press releases, annual reports on Form 10-K, quarterly reports on Form 10-Q and other subsequent disclosure documents filed with the SEC. Gilead claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements.
The reader is cautioned that forward-looking statements are not guarantees of future performance and is cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements are based on information currently available to Gilead and Gilead assumes no obligation to update or supplement any such forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements.
# # #
Gilead owns or has rights to various trademarks, copyrights and trade names used in its business, including the following: GILEAD®, GILEAD SCIENCES®, KITETM, AMBISOME®, ATRIPLA®, BIKTARVY®, CAYSTON®, COMPLERA®, DESCOVY®, DESCOVY FOR PREP®, EMTRIVA®, EPCLUSA®, EVIPLERA®, GENVOYA®, HARVONI®, HEPCLUDEX®, HEPSERA®, JYSELECA®, LETAIRIS®, ODEFSEY®, SOVALDI®, STRIBILD®, SUNLENCA® , TECARTUS®, TRODELVY®, TRUVADA®, TRUVADA FOR PREP®, TYBOST®, VEKLURY®, VEMLIDY®, VIREAD®, VOSEVI®, YESCARTA® and ZYDELIG®. KEYTRUDA® is a registered trademark of Merck Sharp & Dohme LLC, a subsidiary of Merck & Co., Inc., Rahway, NJ, United States. Other trademarks are the property of their respective owners.
For more information on Gilead Sciences, Inc., please visit www.gilead.com or call the Gilead Public Affairs Department at 1-800-GILEAD-5 (1-800-445-3235).
CONTACTS: Investors: Jacquie Ross, CFA investor_relations@gilead.com
Media: Ashleigh Koss public_affairs@gilead.com


February 6, 2024
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GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(in millions, except per share amounts) 2023 2022 2023 2022
Revenues:
Product sales $ 7,070  $ 7,333  $ 26,934  $ 26,982 
Royalty, contract and other revenues 45  56  182  299 
Total revenues 7,115  7,389  27,116  27,281 
Costs and expenses:
Cost of goods sold 2,090  1,396  6,498  5,657 
Research and development expenses 1,408  1,548  5,718  4,977 
Acquired in-process research and development expenses 347  158  1,155  944 
In-process research and development impairment 50  —  50  2,700 
Selling, general and administrative expenses 1,608  2,020  6,090  5,673 
Total costs and expenses 5,503  5,122  19,511  19,951 
Operating income 1,612  2,267  7,605  7,330 
Interest expense (252) (227) (944) (935)
Other income (expense), net 293  (9) 198  (581)
Income before income taxes 1,653  2,031  6,859  5,814 
Income tax expense (236) (398) (1,247) (1,248)
Net income 1,417  1,633  5,613  4,566 
Net loss attributable to noncontrolling interest 12  52  26 
Net income attributable to Gilead $ 1,429  $ 1,640  $ 5,665  $ 4,592 
Basic earnings per share attributable to Gilead $ 1.15  $ 1.31  $ 4.54  $ 3.66 
Shares used in basic earnings per share attributable to Gilead calculation 1,248  1,252  1,248  1,255 
Diluted earnings per share attributable to Gilead $ 1.14  $ 1.30  $ 4.50  $ 3.64 
Shares used in diluted earnings per share attributable to Gilead calculation 1,256  1,264  1,258  1,262 
Cash dividends declared per share $ 0.75  $ 0.73  $ 3.00  $ 2.92 
Research and development expenses as a % of revenues 19.8  % 20.9  % 21.1  % 18.2  %
Selling, general and administrative expenses as a % of revenues 22.6  % 27.3  % 22.5  % 20.8  %




February 6, 2024
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GILEAD SCIENCES, INC.
TOTAL REVENUE SUMMARY
(unaudited)

Three Months Ended Twelve Months Ended
December 31, December 31,
(in millions, except percentages) 2023 2022 Change 2023 2022 Change
Product sales:
HIV $ 4,693  $ 4,772  (2)% $ 18,175  $ 17,194  6%
Oncology 765  614  24% 2,932  2,139  37%
Liver Disease
691  694  —% 2,784  2,798  (1)%
Other 201  252  (20)% 859  946  (9)%
Total product sales excluding Veklury 6,350  6,333  —% 24,750  23,077  7%
Veklury 720  1,000  (28)% 2,184  3,905  (44)%
Total product sales 7,070  7,333  (4)% 26,934  26,982  —%
Royalty, contract and other revenues 45  56  (21)% 182  299  (39)%
Total revenues $ 7,115  $ 7,389  (4)% $ 27,116  $ 27,281  (1)%



February 6, 2024
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GILEAD SCIENCES, INC.
NON-GAAP FINANCIAL INFORMATION(1)
(unaudited)

Three Months Ended Twelve Months Ended
December 31, December 31,
(in millions, except percentages) 2023 2022 Change 2023 2022 Change
Non-GAAP:
Cost of goods sold $ 980  $ 968  1% $ 3,697  $ 3,602  3%
Research and development expenses $ 1,452  $ 1,544  (6)% $ 5,720  $ 4,968  15%
Acquired IPR&D expenses(2)
$ 347  $ 158  NM $ 1,155  $ 944  22%
Selling, general and administrative expenses $ 1,597  $ 2,020  (21)% $ 6,060  $ 5,587  8%
Other income (expense), net $ 104  $ 52  NM $ 365  $ 77  NM
Diluted EPS $ 1.72  $ 1.67  3% $ 6.72  $ 7.26  (7)%
Product gross margin 86.1  % 86.8  % -66 bps 86.3  % 86.6  % -38 bps
Research and development expenses as a % of revenues 20.4  % 20.9  % -49 bps 21.1  % 18.2  % 288 bps
Selling, general and administrative expenses as a % of revenues 22.4  % 27.3  % -490 bps 22.3  % 20.5  % 187 bps
Operating margin 38.5  % 36.5  % 197 bps 38.7  % 44.6  % -598 bps
Effective tax rate 17.1  % 16.8  % 22 bps 15.2  % 19.3  % -416 bps
________________________________
NM - Not Meaningful
(1)    Refer to Non-GAAP Financial Information section above for further disclosures on non-GAAP financial measures. A reconciliation between GAAP and non-GAAP financial information is provided in the tables below.
(2)    Equal to GAAP financial information.




February 6, 2024
10
    
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(in millions, except percentages and per share amounts) 2023 2022 2023 2022
Cost of goods sold reconciliation:
GAAP cost of goods sold $ 2,090  $ 1,396  $ 6,498  $ 5,657 
Acquisition-related – amortization(1)
(580) (428) (2,271) (2,013)
Restructuring (479) —  (479) (42)
Other(2)
(51) —  (51) — 
Non-GAAP cost of goods sold $ 980  $ 968  $ 3,697  $ 3,602 
Product gross margin reconciliation:
GAAP product gross margin 70.4  % 81.0  % 75.9  % 79.0  %
Acquisition-related – amortization(1)
8.2  % 5.8  % 8.4  % 7.5  %
Restructuring 6.8  % —  % 1.8  % 0.2  %
Other(2)
0.7  % —  % 0.2  % —  %
Non-GAAP product gross margin 86.1   % 86.8   % 86.3   % 86.6   %
Research and development expenses reconciliation:
GAAP research and development expenses $ 1,408  $ 1,548  $ 5,718  $ 4,977 
Acquisition-related – other costs(4)
59  (1) 22  13 
Restructuring (15) (4) (20) (22)
Non-GAAP research and development expenses $ 1,452  $ 1,544  $ 5,720  $ 4,968 
IPR&D impairment reconciliation:
GAAP IPR&D impairment $ 50  $ —  $ 50  $ 2,700 
IPR&D impairment (50) —  (50) (2,700)
Non-GAAP IPR&D impairment $ —  $ —  $ —  $ — 
Selling, general and administrative expenses reconciliation:
GAAP selling, general and administrative expenses $ 1,608  $ 2,020  $ 6,090  $ 5,673 
Acquisition-related – other costs(4)
—  (1) (2) (3)
Restructuring (11) (28)
Other(3)
—  —  —  (85)
Non-GAAP selling, general and administrative expenses $ 1,597  $ 2,020  $ 6,060  $ 5,587 
Operating income reconciliation:
GAAP operating income $ 1,612  $ 2,267  $ 7,605  $ 7,330 
Acquisition-related – amortization(1)
580  428  2,271  2,013 
Acquisition-related – other costs(4)
(59) (20) (10)
Restructuring 505  527  62 
IPR&D impairment 50  —  50  2,700 
Other(2)(3)
51  —  51  85 
Non-GAAP operating income $ 2,739  $ 2,699  $ 10,484  $ 12,180 
Operating margin reconciliation:
GAAP operating margin 22.7  % 30.7  % 28.0  % 26.9  %
Acquisition-related – amortization(1)
8.1  % 5.8  % 8.4  % 7.4  %
Acquisition-related – other costs(4)
(0.8) % —  % (0.1) % —  %
Restructuring 7.1  % —  % 1.9  % 0.2  %
IPR&D impairment 0.7  % —  % 0.2  % 9.9  %
Other(2)(3)
0.7  % —  % 0.2  % 0.3  %
Non-GAAP operating margin 38.5  % 36.5  % 38.7  % 44.6  %
Other income (expense), net reconciliation:
GAAP other income (expense), net $ 293  $ (9) $ 198  $ (581)
(Gain) loss from equity securities, net (189) 61  167  657 
Non-GAAP other income (expense), net $ 104  $ 52  $ 365  $ 77 


February 6, 2024
11
    
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION - (Continued)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(in millions, except percentages and per share amounts) 2023 2022 2023 2022
Effective tax rate reconciliation:
GAAP effective tax rate 14.3  % 19.6  % 18.2  % 21.5  %
Income tax effect of above non-GAAP adjustments and discrete and related tax adjustments(5)
2.8  % (2.8) % (3.0) % (2.1) %
Non-GAAP effective tax rate 17.1  % 16.8  % 15.2  % 19.3  %
Net income attributable to Gilead reconciliation:
GAAP net income attributable to Gilead $ 1,429  $ 1,640  $ 5,665  $ 4,592 
Acquisition-related – amortization(1)
460  346  1,805  1,610 
Acquisition-related – other costs(4)
(59) (29) (12)
Restructuring 414  431  47 
IPR&D impairment 35  —  35  2,057 
(Gain) loss from equity securities, net (171) 60  180  630 
Discrete and related tax charges(5)
12  57  326  175 
Other(2)(3)
40  —  40  59 
Non-GAAP net income attributable to Gilead $ 2,161  $ 2,106  $ 8,454  $ 9,158 
Diluted earnings per share reconciliation:
GAAP diluted earnings per share $ 1.14  $ 1.30  $ 4.50  $ 3.64 
Acquisition-related – amortization(1)
0.37  0.27  1.43  1.28 
Acquisition-related – other costs(4)
(0.05) —  (0.02) (0.01)
Restructuring 0.33  —  0.34  0.04 
IPR&D impairment 0.03  —  0.03  1.63 
(Gain) loss from equity securities, net (0.14) 0.05  0.14  0.50 
Discrete and related tax charges(5)
0.01  0.05  0.26  0.14 
Other(2)(3)
0.03  —  0.03  0.05 
Non-GAAP diluted earnings per share $ 1.72  $ 1.67  $ 6.72  $ 7.26 
Non-GAAP adjustment summary:
Cost of goods sold adjustments $ 1,110  $ 428  $ 2,801  $ 2,055 
Research and development expenses adjustments (44) (2)
IPR&D impairment adjustments 50  —  50  2,700 
Selling, general and administrative expenses adjustments 11  —  30  86 
Total non-GAAP adjustments to costs and expenses
1,127  432  2,879  4,850 
Other income (expense), net, adjustments (189) 61  167  657 
Total non-GAAP adjustments before income taxes 938  493  3,046  5,507 
Income tax effect of non-GAAP adjustments above (218) (84) (583) (1,116)
Discrete and related tax charges(5)
12  57  326  175 
Total non-GAAP adjustments to net income attributable to Gilead $ 732  $ 466  $ 2,789  $ 4,566 
______________________________
(1)    Relates to amortization of acquired intangibles and inventory step-up charges.
(2)    Relates to a write-off of an intangible asset related to the restructuring of our collaboration with Galapagos NV during the fourth quarter of 2023.
(3)    Relates to donations to the Gilead Foundation, a California nonprofit organization, during the second quarter of 2022.
(4)    Adjustments include integration expenses, contingent consideration fair value adjustments and other expenses associated with Gilead’s acquisitions of MYR GmbH, MiroBio, Ltd., Tmunity Therapeutics, Inc. and XinThera, Inc.
(5)    Represents discrete and related deferred tax charges or benefits primarily associated with acquired intangible assets and transfers of intangible assets from a foreign subsidiary to Ireland and the United States.


February 6, 2024
12
    
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP 2024 FULL YEAR GUIDANCE(1)
(unaudited)
(in millions, except percentages and per share amounts) Provided
February 6, 2024
Projected product gross margin GAAP to non-GAAP reconciliation:
GAAP projected product gross margin 76.0% - 77.0%
Acquisition-related expenses and other ~ 9.0%
Non-GAAP projected product gross margin 85.0% - 86.0%
Projected operating income GAAP to non-GAAP reconciliation:
GAAP projected operating income $8,700 - $9,200
Acquisition-related expenses and other ~ 2,500
Non-GAAP projected operating income $11,200 - $11,700
Projected effective tax rate GAAP to non-GAAP reconciliation:
GAAP projected effective tax rate ~ 21%
Income tax effect of above non-GAAP adjustments, and discrete and related tax adjustments (~ 2%)
Non-GAAP projected effective tax rate ~ 19%
Projected diluted EPS GAAP to non-GAAP reconciliation:
GAAP projected diluted EPS $5.15 - $5.55
Acquisition-related expenses and other, and discrete and related tax adjustments ~ 1.70
Non-GAAP projected diluted EPS $6.85 - $7.25
________________________________
(1) Our full-year guidance excludes the potential impact of any (i) acquisitions or business development transactions that have not been executed, (ii) future fair value adjustments of equity securities and (iii) discrete tax charges or benefits associated with changes in tax related laws and guidelines that have not been enacted, as Gilead is unable to project such amounts. The non-GAAP full-year guidance includes non-GAAP adjustments to actual current period results as well as adjustments for the known future impact associated with events that have already occurred, such as future amortization of our intangible assets and the future impact of discrete and related deferred tax charges or benefits primarily associated with acquired intangible assets and transfers of intangible assets from a foreign subsidiary to Ireland and the United States.




February 6, 2024
13
    
GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
December 31,
(in millions) 2023 2022
Assets
Cash, cash equivalents and marketable debt securities $ 8,428  $ 7,630 
Accounts receivable, net 4,660  4,777 
Inventories 3,366  2,820 
Property, plant and equipment, net 5,317  5,475 
Intangible assets, net 26,454  28,894 
Goodwill 8,314  8,314 
Other assets 5,586  5,262 
Total assets $ 62,125  $ 63,171 
Liabilities and Stockholders’ Equity
Current liabilities $ 11,280  $ 11,237 
Long-term liabilities 28,096  30,725 
Stockholders’ equity(1)
22,749  21,209 
Total liabilities and stockholders’ equity $ 62,125  $ 63,171 
________________________________
(1) As of December 31, 2023 and 2022, there were 1,246 and 1,247 shares of common stock issued and outstanding, respectively.


February 6, 2024
14
    
GILEAD SCIENCES, INC.
SELECTED CASH FLOW INFORMATION
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(in millions) 2023 2022 2023 2022
Net cash provided by operating activities $ 2,168  $ 2,566  $ 8,006  $ 9,072 
Net cash used in investing activities (726) (374) (2,265) (2,466)
Net cash used in financing activities (1,100) (1,554) (5,125) (6,469)
Effect of exchange rate changes on cash and cash equivalents 37  75  57  (63)
Net change in cash and cash equivalents 380  713  673  74 
Cash and cash equivalents at beginning of period 5,705  4,699  5,412  5,338 
Cash and cash equivalents at end of period $ 6,085  $ 5,412  $ 6,085  $ 5,412 

Three Months Ended Twelve Months Ended
December 31, December 31,
(in millions) 2023 2022 2023 2022
Net cash provided by operating activities $ 2,168  $ 2,566  $ 8,006  $ 9,072 
Capital expenditures (214) (181) (585) (728)
Free cash flow(1)
$ 1,954  $ 2,386  $ 7,421  $ 8,344 
________________________________
(1)    Free cash flow is a non-GAAP liquidity measure. Please refer to our disclosures in the Non-GAAP Financial Information section above.


February 6, 2024
15
    
GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(in millions) 2023 2022 2023 2022
HIV
Biktarvy – U.S. $ 2,588  $ 2,423  $ 9,692  $ 8,510 
Biktarvy – Europe 333  295  1,253  1,103 
Biktarvy – Other International 188  200  905  777 
3,109  2,918  11,850  10,390 
Complera / Eviplera – U.S. 17  47  74 
Complera / Eviplera – Europe 15  37  70  113 
Complera / Eviplera – Other International 12  13 
24  58  129  200 
Descovy – U.S. 457  479  1,771  1,631 
Descovy – Europe 25  26  100  118 
Descovy – Other International 28  31  114  123 
509  537  1,985  1,872 
Genvoya – U.S. 447  543  1,752  1,983 
Genvoya – Europe 48  64  205  284 
Genvoya – Other International 22  33  103  136 
517  640  2,060  2,404 
Odefsey – U.S. 258  295  1,012  1,058 
Odefsey – Europe 71  85  294  364 
Odefsey – Other International 11  11  44  47 
340  392  1,350  1,469 
Stribild – U.S. 15  20  72  88 
Stribild – Europe 21  29 
Stribild – Other International 10 
22  29  101  127 
Truvada – U.S. 12  37  82  113 
Truvada – Europe 13  15 
Truvada – Other International 19  18 
18  45  114  147 
Revenue share – Symtuza(1) – U.S.
104  97  382  348 
Revenue share – Symtuza(1) – Europe
32  42  133  168 
Revenue share – Symtuza(1) – Other International
13  14 
139  142  529  530 
Other HIV(2) – U.S.
13  37  15 
Other HIV(2) – Europe
12  24 
Other HIV(2) – Other International
17 
15  12  56  57 
Total HIV – U.S. 3,899  3,914  14,848  13,820 
Total HIV – Europe 533  566  2,102  2,219 
Total HIV – Other International 261  293  1,226  1,155 
$ 4,693  4,772  $ 18,175  $ 17,194 


February 6, 2024
16
    
GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY - (Continued)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(in millions) 2023 2022 2023 2022
Oncology
Cell Therapy
Tecartus – U.S. $ 66  $ 61  $ 245  $ 221 
Tecartus – Europe 27  19  110  75 
Tecartus – Other International 15 
98  82  370  299 
Yescarta – U.S. 187  219  811  747 
Yescarta – Europe 140  103  547  355 
Yescarta – Other International 42  15  140  57 
368  337  1,498  1,160 
Total Cell Therapy – U.S. 253  281  1,055  968 
Total Cell Therapy – Europe 167  122  658  430 
Total Cell Therapy – Other International 46  17  156  60 
466  419  1,869  1,459 
Trodelvy
Trodelvy – U.S. 226  146  777  525 
Trodelvy– Europe 48  44  217  143 
Trodelvy – Other International 24  68  12 
299  195  1,063  680 
Total Oncology – U.S. 479  427  1,833  1,494 
Total Oncology – Europe 216  166  875  573 
Total Oncology – Other International 70  21  224  73 
765  614  2,932  2,139 
Liver Disease
HCV
Ledipasvir / Sofosbuvir(3) – U.S.
11  19  39  46 
Ledipasvir / Sofosbuvir(3) – Europe
12  17 
Ledipasvir / Sofosbuvir(3) – Other International
19  51 
17  31  70  115 
Sofosbuvir / Velpatasvir(4) – U.S.
216  214  859  844 
Sofosbuvir / Velpatasvir(4) – Europe
74  67  323  355 
Sofosbuvir / Velpatasvir(4) – Other International
89  87  355  331 
378  369  1,537  1,530 
Other HCV(5) – U.S.
25  27  104  115 
Other HCV(5) – Europe
10  43  40 
Other HCV(5) – Other International
12  10 
37  39  160  166 
Total HCV – U.S. 251  260  1,002  1,005 
Total HCV – Europe 84  80  378  413 
Total HCV – Other International 97  98  386  392 
$ 432  $ 439  $ 1,767  $ 1,810 









February 6, 2024
17
    
GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY - (Continued)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
(in millions) 2023 2022 2023 2022
HBV/HDV
Vemlidy – U.S. $ 115  $ 123  $ 410  $ 429 
Vemlidy – Europe 10  38  35 
Vemlidy – Other International 92  89  414  379 
217  220  862  842 
Viread – U.S.
Viread – Europe 22  23 
Viread – Other International 12  14  52  62 
21  22  83  91 
Other HBV/HDV(6) – U.S.
—  (1) —  — 
Other HBV/HDV(6) – Europe
22  14  72  55 
22  13  72  55 
Total HBV/HDV – U.S. 119  124  418  435 
Total HBV/HDV – Europe 37  28  133  112 
Total HBV/HDV – Other International 103  103  466  441 
259  255  1,017  988 
Total Liver Disease – U.S. 370  384  1,421  1,440 
Total Liver Disease – Europe 121  108  511  525 
Total Liver Disease – Other International 200  202  852  833 
691  694  2,784  2,798 
Veklury
Veklury – U.S. 364  395  972  1,575 
Veklury – Europe 181  142  408  702 
Veklury – Other International 175  462  805  1,628 
720  1,000  2,184  3,905 
Other
AmBisome – U.S. 43  57 
AmBisome – Europe 68  66  260  258 
AmBisome – Other International 39  42  189  182 
111  117  492  497 
Letairis – U.S. 36  60  142  196 
Other(7) – U.S.
28  44  118  135 
Other(7) – Europe
13  40  65 
Other(7) – Other International
17  18  66  53 
54  75  225  253 
Total Other – U.S. 68  113  304  388 
Total Other – Europe 77  79  301  323 
Total Other – Other International 56  61  255  235 
201  252  859  946 
Total product sales – U.S. 5,180  5,234  19,377  18,716 
Total product sales – Europe 1,128  1,061  4,197  4,342 
Total product sales – Other International 762  1,037  3,361  3,924 
$ 7,070  $ 7,333  $ 26,934  $ 26,982 
_______________________________
(1)    Represents Gilead’s revenue from cobicistat (“C”), FTC and TAF in Symtuza (darunavir/C/FTC/TAF), a fixed dose combination product commercialized by Janssen Sciences Ireland Unlimited Company.
(2)    Includes Atripla, Emtriva, Sunlenca and Tybost.
(3)    Amounts consist of sales of Harvoni and the authorized generic version of Harvoni sold by Gilead’s separate subsidiary, Asegua Therapeutics LLC.
(4)    Amounts consist of sales of Epclusa and the authorized generic version of Epclusa sold by Gilead’s separate subsidiary, Asegua Therapeutics LLC.
(5)    Includes Vosevi and Sovaldi.
(6)    Includes Hepcludex and Hepsera.
(7)    Includes Cayston, Jyseleca, Ranexa and Zydelig.