Financial Report: Gilead Sciences

Gilead Sciences

4Q Revenues: $899.2 million (+48%)

4Q Loss: $1.7 billion (earnings were $281.6 million 4Q2005)

FY Revenues: $3 billion (+49%)

FY Loss: $1.2 billion (earnings were $813 million FY2005)

Comments: Record sales in the quarter and FY were primarily driven by the company’s HIV product franchise of Truvada, Viread and Emtriva, including the strong uptake of Atripla following its July 2006 launch in the U.S. HIV product sales were $642.4 million in the quarter, up 67% and $2.1 billion for the year, up 52%. Hepsera sales were $65.9 million for the quarter, up 29% and $230.5 million for the year, up 24%. Results for the quarter and FY include acquisition-related charges of $2 billion and $2.4 billion, respectively, related to IPR&D programs acquired from Corus and Myogen. R&D expenses for the quarter were $111.6 million compared to $68.8 million in 4Q2005. For the year R&D expenses were $383.9 million compared to $277.7 million FY2005.