The FINANCIAL — Gilead Sciences, Inc. announced on April 30 its results of operations for the first quarter ended March 31, 2015. The financial results that follow represent a year over year comparison of first quarter 2015 to the first quarter 2014.
Total revenues were $7.6 billion in 2015 compared to $5.0 billion in 2014. Product sales were $7.4 billion in 2015 compared to $4.9 billion in 2014. Net income was $4.3 billion, or $2.76 per diluted share in 2015 compared to $2.2 billion or $1.33 per diluted share in 2014. Non-GAAP net income, which excludes amounts related to acquisition, restructuring, stock-based compensation and other, was $4.6 billion, or $2.94 per diluted share in 2015 compared to $2.5 billion or $1.48 per diluted share in 2014, according to Gilead.
Product Sales
Total product sales for the first quarter of 2015 were $7.4 billion compared to $4.9 billion for the first quarter of 2014. In the first quarter, product sales in the U.S. were $5.2 billion compared to $3.6 billion for the first quarter of 2014, and in Europe, product sales for the first quarter of 2015 were $1.8 billion compared to $1.0 billion for the same period in 2014.
Antiviral Product Sales
Antiviral product sales increased to $7.0 billion for the first quarter of 2015, up from $4.5 billion for the first quarter of 2014 primarily due to sales of Harvoni (ledipasvir 90 mg/sofosbuvir 400 mg), which was approved in the U.S. and Europe in the fourth quarter of 2014, partially offset by a decrease in sales of Sovaldi (sofosbuvir).
Other Product Sales
Other product sales, which include Letairis, Ranexa and AmBisome, were $417 million for the first quarter of 2015 compared to $362 million for the first quarter of 2014.
Operating Expenses
During the first quarter of 2015, compared to the same period in 2014:
Non-GAAP research and development (R&D) expenses increased primarily due to the continued progression and expansion of Gilead’s clinical studies, particularly phase 3 studies in the liver disease and oncology areas.
Non-GAAP selling, general and administrative (SG&A) expenses increased primarily due to growth in our business including commercial expansion for our hepatitis C virus (HCV) products.
Cash, Cash Equivalents and Marketable Securities
As of March 31, 2015, Gilead had $14.5 billion of cash, cash equivalents and marketable securities compared to $11.7 billion as of December 31, 2014. During the first quarter of 2015, Gilead generated $5.7 billion in operating cash flow and utilized $3.0 billion to repurchase shares, which completes our May 2014 stock repurchase program.
Product & Pipeline Updates Announced by Gilead During the First Quarter of 2015 Include:
Antiviral Program
Announced that the Japanese Ministry of Health, Labour and Welfare approved Sovaldi for the suppression of viremia in patients with genotype 2 chronic HCV infection with or without compensated cirrhosis. Sovaldi is indicated for use in combination with ribavirin (RBV) for 12 weeks. Sovaldi (in combination with RBV) is the first all-oral, interferon-free treatment regimen for genotype 2 HCV infection.
Presentation of data at the 22nd Conference on Retroviruses and Opportunistic Infections included announcement of:
Positive results from a Phase 3 clinical trial evaluating the once-daily single tablet regimen Harvoni for the treatment of genotypes 1 or 4 chronic HCV infection among patients co-infected with HIV. In the trial, 96 percent of HCV patients achieved a sustained virologic response 12 weeks after completing therapy (SVR12). Patients who achieve SVR12 are considered cured of HCV infection.
Positive 48-week results from two Phase 3 studies (Studies 104 and 111) evaluating an investigational once-daily single tablet regimen containing tenofovir alafenamide (TAF) for the treatment of HIV-1 infection in treatment-naïve adults. TAF is a novel nucleotide reverse transcriptase inhibitor that has demonstrated high antiviral efficacy at a dose 10 times lower than Gilead’s Viread, as well as improved renal and bone laboratory parameters, in clinical trials.
Positive results from a preclinical study conducted in collaboration with researchers at Beth Israel Deaconess Medical Center evaluating a proprietary investigational oral TLR7 agonist and analogue of GS-9620 as part of an HIV eradication strategy. Data demonstrated that treatment with the TLR7 agonist induced transient plasma Simian Immunodeficiency Virus (SIV) RNA, as well as reduced SIV DNA in virally suppressed rhesus macaques given antiretroviral therapy (ART). In addition, the study found that after discontinuation of ART, SIV viral loads were lower among macaques that received the proprietary TLR7 agonist compared to the placebo group.
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