- Quarterly Dividend Increase of 10% -
Additional $12 Billion Share Buyback Program -
FOSTER CITY, Calif.--(BUSINESS WIRE)--Feb. 2, 2016--
Gilead Sciences, Inc. (Nasdaq: GILD) announced today that the company’s
Board of Directors declared a cash dividend of $0.43 per share of common
stock for the first quarter of 2016. The first quarter dividend is
payable on March 30, 2016, to stockholders of record at the close of
business on March 16, 2016.
In addition the Board authorized an increase of 4 cents (ten percent) in
the company’s quarterly dividend program, beginning in the second
quarter of 2016. Subject to declaration by the Board of Directors, the
increase will result in a quarterly cash dividend of $0.47 per share of
common stock for the second quarter of 2016. Future dividends will be
subject to Board approval.
The Board of Directors also approved the repurchase of an additional $12
billion of the company’s common stock to commence upon completion of the
company’s existing $15 billion repurchase program authorized in January
2015. All purchases under the newly approved $12 billion program may be
made in the open market or in privately negotiated transactions from
time to time, as determined by Gilead’s management and in accordance
with the requirements of the Securities and Exchange Commission. As of
December 31, 2015, approximately $8 billion remained in the January 2015
program. In addition to ongoing open market purchases this quarter, the
company intends to utilize $5 billion of the remaining January 2015
program in the next three months under an accelerated share repurchase
“Today’s announcement reflects confidence in the company’s long term
cash flows and our commitment to use our cash to invest for future
growth and deliver shareholder return,” said John C. Martin, PhD,
Gilead’s Chairman and Chief Executive Officer.
Gilead Sciences is a biopharmaceutical company that discovers, develops
and commercializes innovative therapeutics in areas of unmet medical
need. The company's mission is to advance the care of patients suffering
from life-threatening diseases worldwide. Gilead has operations in more
than 30 countries worldwide, with headquarters in Foster City,
This press release includes forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995, that
are subject to risks, uncertainties and other factors, including that
Gilead may be unable to enter into and complete the accelerated share
repurchase program in the currently contemplated timeline or at all.
Gilead may also be unable to complete the existing January 2015 and new
$12 billion share repurchase programs due to changes in its stock price,
corporate or other market conditions. In addition, Gilead may be unable
to pay dividends in future quarters or its Board of Directors may reduce
the amount of the dividend for a number of reasons, including, without
limitation, due to changes in its financial condition, material
developments in Gilead’s business or the involvement of Gilead in
significant acquisitions. These risks, uncertainties and other factors
could cause actual results to differ materially from those referred to
in the forward-looking statements. The reader is cautioned not to rely
on these forward-looking statements. These and other risks are described
in detail in Gilead’s Quarterly Report on Form 10-Q for the quarter
ended September 30, 2015, as filed with the U.S. Securities and Exchange
Commission. All forward-looking statements are based on information
currently available to Gilead, and Gilead assumes no obligation to
update any such forward-looking statement.
For more information on Gilead Sciences, please visit the company’s
website at www.Gilead.com,
follow Gilead on Twitter (@GileadSciences) or call Gilead Public Affairs
at 1-800-GILEAD-5 or 1-650-574-3000.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160202006469/en/
Source: Gilead Sciences, Inc.
Gilead Sciences, Inc.
Patrick O'Brien, 650-522-1936