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|Gilead Sciences Announces Second Quarter 2018 Financial Results|
- Product Sales of
- Diluted EPS of
- Non-GAAP Diluted EPS of
- Revised Full Year 2018 Guidance for Non-GAAP Effective Tax Rate -
Total product sales for the second quarter of 2018 were
Note: Non-GAAP financial information excludes acquisition-related, up-front collaboration, stock-based compensation and other expenses, fair value adjustments of marketable equity securities and measurement period adjustments relating to the enactment of the 2017 Tax Cuts and Jobs Act (Tax Reform). A reconciliation between GAAP and non-GAAP financial information is provided in the tables on page 8, 9 and 10.
During the second quarter of 2018, compared to the same period in 2017:
(1) Excludes sales of Viread as Viread is primarily used for treatment of chronic hepatitis B (HBV).
Effective Tax Rate
The effective tax rate and non-GAAP effective tax rate in the second quarter of 2018 were 12.8% and 13.4% compared to 24.3% and 22.8% in the first quarter of 2018, respectively. The effective tax rate and non-GAAP effective tax rate were lower in the second quarter of 2018 primarily due to a favorable settlement of a tax examination. For the full year 2018, Gilead has revised its non-GAAP effective tax rate to be in the range of 19.0% - 21.0%.
Gilead is unable to project potential measurement period adjustments during 2018 relating to Tax Reform. As a result, Gilead is unable to project an effective tax rate on a GAAP basis.
Revised Full Year 2018 Guidance
Gilead revised its full year 2018 guidance, initially provided on
Product and Pipeline Updates announced by Gilead during the Second Quarter of 2018 include:
HIV and Liver Diseases Programs
Oncology and Cell Therapy Programs
Non-GAAP Financial Information
The information presented in this document has been prepared by Gilead 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 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 8, 9 and 10.
A replay of the webcast will be archived on the company’s website for
one year and a phone replay will be available approximately two hours
following the call through
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: Gilead’s ability to achieve its
anticipated full year 2018 financial results; Gilead’s ability to
sustain growth in revenues for its antiviral and other programs; the
risk that private and public payers may be reluctant to provide, or
continue to provide, coverage or reimbursement for new products,
including Vosevi, Yescarta, Epclusa, Biktarvy and Vemlidy; austerity
measures in European countries that may increase the amount of discount
required on Gilead’s products; an increase in discounts, chargebacks and
rebates due to ongoing contracts and future negotiations with commercial
and government payers; a larger than anticipated shift in payer mix to
more highly discounted payer segments and geographic regions and
decreases in treatment duration; availability of funding for state AIDS
Drug Assistance Programs (ADAPs); continued fluctuations in ADAP
purchases driven by federal and state grant cycles which may not mirror
patient demand and may cause fluctuations in Gilead’s earnings; market
share and price erosion caused by the introduction of generic versions
of Viread and Truvada, an uncertain global macroeconomic environment;
and potential amendments to the Affordable Care Act or other government
action that could have the effect of lowering prices or reducing the
number of insured patients; Gilead’s ability to initiate clinical trials
in its currently anticipated timeframes; the levels of inventory held by
wholesalers and retailers which may cause fluctuations in Gilead’s
earnings; Gilead’s ability to develop products utilizing Hookipa’s
TheraT and Vaxwave arenavirus vector-based immunization technologies;
Gilead’s ability to utilize Verily’s Immunoscape platform to identify
and better understand certain inflammatory diseases; Gilead’s ability to
successfully manufacture cell therapies at its new worldwide facilities;
Gilead’s ability to submit new drug applications for new product
candidates in the timelines currently anticipated; Gilead’s ability to
receive regulatory approvals in a timely manner or at all, for new and
current products, including Yescarta in the
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®,
ATRIPLA® is a registered trademark of
Gilead Sciences, Inc.
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