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Q1 2017 Earnings Results

May 2, 2017
Forward-Looking Statements
The projected financial results presented in the following slides represent management's estimates of Gileads future financial results. 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: Gileads ability to achieve its anticipated full year 2017 financial results; Gileads ability to sustain growth in revenues for its antiviral
and other programs; the risk that estimates of patients with HCV or anticipated patient demand may not be accurate; the risk that private and public
payers may be reluctant to provide, or continue to provide, coverage or reimbursement for new products, including Vemlidy, Epclusa, Descovy, Odefsey
and Genvoya; the potential for increased pricing pressure globally and contracting pressure as well as decreased volume and market share from
additional competitive HCV launches; 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) and Veterans Administration (VA); continued
fluctuations in ADAP and VA purchases driven by federal and state grant cycles which may not mirror patient demand and may cause fluctuations in
Gileads earnings; market share and price erosion caused by the introduction of generic versions of Viread and Truvada outside the United States;
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; the possibility of unfavorable results from clinical trials involving investigational compounds; the levels of inventory held by wholesalers
and retailers which may cause fluctuations in Gileads earnings; Gileads ability to submit new drug applications and receive regulatory approval for new
product candidates in the timelines currently anticipated or at all; Gileads ability to successfully develop its oncology, inflammation, cardiovascular and
respiratory programs; safety and efficacy data from clinical studies may not warrant further development of Gileads product candidates, including
BIC+FTC/TAF and certain HIV CAIs; Gileads ability to pay dividends or complete its share repurchase program due to changes in its stock price,
corporate or other market conditions; fluctuations in the foreign exchange rate of the U.S. dollar that may cause an unfavorable foreign currency
exchange impact on Gileads future revenues and pre-tax earnings; and other risks identified from time to time in Gileads reports filed with the U.S.
Securities and Exchange Commission (SEC). In addition, Gilead makes estimates and judgments that affect the reported amounts of assets, liabilities,
revenues and expenses and related disclosures. Actual results may differ significantly from these estimates. You are urged to consider statements that
include the words may, will, would, could, should, might, believes, estimates, projects, potential, expects, plans, anticipates, intends, continues, forecast,
designed, goal, or the negative of those words or other comparable words to be uncertain and forward-looking. Gilead directs readers to its press
releases, Annual Report on Form 10-K for the year ended December 31, 2016 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. All forward-
looking statements are based on information currently available to Gilead, and Gilead assumes no obligation to update any such forward-looking
statements.

This presentation includes GAAP and non-GAAP financial measures, a complete reconciliation between these two measures is available on the
Companys website at www.gilead.com within the investor section. Management believes this non-GAAP information is useful for investors, when
considered in conjunction with Gileads 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 Gileads operating results as reported under U.S. GAAP. Non-GAAP measures may be defined and calculated differently
by other companies in the same industry.

2
Q1 2017 Earnings Call Agenda

Introduction Sung Lee, VP, Investor Relations

Commentary Robin Washington, EVP and CFO


Jim Meyers, EVP, Commercial Operations
John Milligan, President and CEO
Q&A Also:
Norbert Bischofberger, EVP, R&D and CSO
Kevin Young, COO

3
Table of Contents

Discussion Slide #
Robin Washington, EVP and CFO
Income Statement Performance 6 13
Cash Flow and Return of Capital to Shareholders 14 16
2017 Guidance 17 18
Jim Meyers, EVP, Commercial Operations
HCV 20 28
HIV 29 35
John Milligan, President and CEO
Pipeline 37 48

Appendix 49 55

4
Robin Washington
EVP and CFO
Financial Highlights: Q1 2017
(in millions, except percentages and per share amounts)

YoY QoQ
Q1 2016 Q4 2016 Q1 2017 Change Change

Net Product Sales $7,681 $7,216 $6,377 (17%) (12%)


Antiviral Products 7,183 6,595 5,841 (19%) (11%)
HCV 4,294 3,229 2,576 (40%) (20%)
HIV and HBV 2,889 3,366 3,265 13% (3%)
Other Products* 498 621 536 8% (14%)
Non-GAAP Costs and Expenses** $2,390 $2,757 $2,439 2% (12%)
COGS 983 860 743 (24%) (14%)
Product Gross Margin 87% 88% 88%
R&D 769 959 889 16% (7%)
SG&A 638 938 807 26% (14%)
Operating Margin 69% 62% 63%
Effective Tax Rate 19% 19% 25%
Non-GAAP Net Income** $4,274 $3,585 $2,949 (31%) (18%)
Non-GAAP Diluted EPS** $3.03 $2.70 $2.23 (26%) (17%)
Diluted Shares 1,412 1,327 1,320 (7%) 0%

* Other Products comprised primarily of Letairis, Ranexa, AmBisome, Zydelig, Cayston and Lexiscan.
**Non-GAAP costs and expenses, net income and diluted EPS exclude acquisition-related, up-front collaboration, stock-based compensation and other expenses. 6
Total Revenues

Q1 2017 down 17% from Q1 2016


$ in millions

$7,794 $7,776
$7,500 $7,320
$6,505

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

Note: FX impact to revenues was unfavorable $26 million QoQ (-0.3%) and unfavorable $87 million YoY (-1.3%).

7
Non-GAAP Diluted EPS

Q1 2017 down 26% from Q1 2016

$3.03 $3.08
$2.75 $2.70

$2.23

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

Note: Non-GAAP diluted EPS excludes acquisition-related, up-front collaboration, stock-based compensation
and other expenses.

8
Total Product Sales
Q1 2017 down 17% from Q1 2016
$ in millions

By Therapeutic Area By Geography

$7,681 $7,651 $7,681 $7,651


$7,405 $7,216 $7,405 $7,216

$1,612 $1,150
$1,661

$1,412 $931

$1,415 $870
$6,377 $6,377

$1,266 $661
$3,325
$3,986

$1,637
$4,294

$3,229

$2,576

$5,062

$4,931
$4,889

$4,450
$4,383
$3,516

$3,366

$3,265
$3,140
$2,889

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

HIV and HBV HCV Other * U.S Europe Other Int'l

*Other comprised primarily of Letairis, Ranexa, AmBisome, Zydelig, Cayston and Lexiscan. 9
Non-GAAP R&D Expenses
Q1 2017 up 16% from Q1 2016
$ in millions Key Metrics
$1,040 Higher R&D expenses in
$981 $959 Q1 17 compared to Q1 16
$889 primarily due to the
purchase of a $125 million
$769
U.S. FDA Priority Review
Voucher in March 2017

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

Note: Non-GAAP R&D expenses exclude acquisition-related, up-front collaboration,


stock-based compensation and other expenses.

10
Non-GAAP SG&A Expenses
Q1 2017 up 26% from Q1 2016 Key Metrics
$ in millions
Higher SG&A expenses in
$938
Q1 17 compared to Q1 16
$838
$807
primarily due to higher net
$780 Branded Prescription Drug
(BPD) fee
P&L impact of BPD fee:
$638 *
BPD Fee $M

2015 Actual $414

2016 Actual $270

2017 Estimate $350-$450

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17
Note: Non-GAAP SG&A expenses exclude acquisition-related, up-front collaboration, stock-
based compensation and other expenses.
* Q1 16 is favorably impacted by $191 million following the receipt of preliminary 2016 IRS
invoice associated with the BPD fee. The favorability is denoted by above.

11
Non-GAAP Product Gross Margin
Key Metrics
Higher Non-GAAP
Product Gross Margin in
91.5% **
87.2% * 87.6% 88.1% 88.3% Q1 17 compared to Q1 16
primarily due to Q1 16
litigation accrual

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

Note: Non-GAAP product gross margin excludes acquisition-related, up-front


collaboration, stock-based compensation and other expenses.

* Q1 16 is negatively impacted by the $200 million litigation reserve.

** Q2 16 is favorably impacted by the $200 million reversal of the litigation reserve


recorded in Q1 16 following a favorable court decision. 12
Non-GAAP Operating Margin

Key Metrics
Lower Non-GAAP
Operating Margin in
Q1 17 compared to Q1 16
69.3% 67.5%
64.3% 62.3% 62.5% driven by lower revenues
and growth of operating
expenses

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

Note: Non-GAAP operating margin excludes acquisition-related, up-front


collaboration, stock-based compensation and other expenses.

13
Other Select Financial Information
(in millions, except days sales outstanding)

Dec. 31, Mar. 31,


2016 2017

Cash, Cash Equivalents & Marketable Securities $32,380 $34,017

Operating Cash Flows During the Quarter * $3,538 $2,925

Inventories $1,587 $1,474

Days Sales Outstanding (Accounts Receivable) 43 42

Share Repurchases During the Quarter $1,000 $565

Interest Expense and Other Income (Expense), net ($125) ($150)

Diluted Shares Used in Per Share Calculation for the Quarter 1,327 1,320

Basic Shares Outstanding 1,316 1,308

* Operating cash flows during the quarter ended December 31, 2016 and March 31, 2017 reflect the impact of adoption of Accounting
Standards Update 2016-09 Improvements to Employee Share-Based Payment Accounting. 14
Return of Capital to Shareholders

Cash dividend program


- Paid quarterly dividend in Q1 2017 of $0.52 per share, an increase of 10% from $0.47 per share in
the prior quarter
- Declared Q2 2017 quarterly dividend of $0.52 per share. The Q2 2017 quarterly dividend is
payable June 29, 2017 to shareholders of record as of the close of business on June 16, 2017

Share repurchase program


- Repurchased $565 million of stock and retired 7.9 million shares at an average price of $71.34 in
open market repurchases in Q1 2017
- $8.4 billion of the January 2016 share repurchase program ($12 billion authorization) remaining as
of March 31, 2017
- Since 2012, repurchased approximately 21% of shares outstanding (over 318 million shares)

15
Q1 2017 Share Activity

Dollar Amount Average


Type of Activity Shares Purchase
(In Millions) Price
Open Market Share
Q1 2017 $565 7,921,267 $71.34
Repurchase*

A $12 billion share repurchase program was authorized in January 2016, which we began in Q2 2016. Under this program, we repurchased a total of 43.6 million shares
with an average purchase price of $81.79 in open market repurchases. As of March 31, 2017, $8.4 billion remains outstanding under the January 2016 program.

* Excludes commissions.

.
16
Full Year 2017 Guidance
(in millions, except percentages and per share amounts)

Initially Provided 2/7/2017


Reiterated 5/2/2017

Net Product Sales* $ 22,500 $ 24,500

Non-HCV Product Sales $ 15,000 - $ 15,500

HCV Product Sales $ 7,500 - $ 9,000

Non-GAAP**

Product Gross Margin 86.0% 88.0%

R&D Expenses $ 3,100 $ 3,400

SG&A Expenses $ 3,100 $ 3,400

Effective Tax Rate 25.0% 28.0%


Diluted EPS Impact of GAAP to
$ 0.84 $ 0.91
Non-GAAP Adjustments***

* This guidance is subject to a number of uncertainties including the accuracy of estimates of HCV patient starts in 2017; unanticipated pricing pressures from payers and competitors; market
share in HCV; slower than anticipated growth in the HIV franchise; 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 such as PHS, FSS, Medicaid and the VA; market share and price erosion
caused by the introduction of generic versions of Viread and Truvada outside the U.S. later this year; an uncertain global macroeconomic environment; 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 as well as volatility in foreign currency exchange
rates.
** Non-GAAP product gross margin, expenses and effective tax rate exclude amounts related to acquisition-related, up-front collaboration, stock-based compensation and other expenses.
*** Includes amounts related to acquisition-related, up-front collaboration, stock-based compensation and other expenses. 17
GAAP to Non-GAAP Reconciliation of Full Year 2017 Guidance
(in millions, except percentages and per share amounts)

Initially Provided 2/7/2017


Reiterated 5/2/2017
Projected product gross margin GAAP to non-GAAP reconciliation:
GAAP projected product gross margin 82% - 84%
Acquisition-related expenses 4% - 4%
Non-GAAP projected product gross margin* 86% - 88%

Projected research and development expenses GAAP to non-GAAP reconciliation:


GAAP projected research and development expenses $3,295 - $3,640
Acquisition-related / up-front collaboration expenses (15) - (45)
Stock-based compensation expenses
(180) - (195)
Non-GAAP projected research and development expenses
$3,100 - $3,400

Projected selling, general and administrative expenses GAAP to non-GAAP


reconciliation:
GAAP projected selling, general and administrative expenses $3,305 - $3,615
Acquisition-related expenses -
Stock-based compensation expenses (205) - (215)

Non-GAAP projected selling, general and administrative expenses $3,100 - $3,400

Projected diluted EPS impact of acquisition-related, up-front collaboration, stock-based


compensation and other expenses:
Acquisition-related / up-front collaboration expenses $0.62 - $0.67
Stock-based compensation expense 0.22 - 0.24

Projected diluted EPS impact of acquisition-related, up-front collaboration, stock-based compensation and other $0.84 - $0.91
expenses

*Stock-based compensation expenses have a less than one percent impact on non-GAAP projected product gross margin.
18
Jim Meyers
EVP, Commercial Operations
HCV
Total HCV Product Sales by Geography
Key Metrics
$ in millions Q1 2017 down 40% from Q1 2016 U.S.:
YoY decrease from Q1 16 due to lower
$4,294 patient starts and competitive
$3,986 dynamics. Sequential decrease driven
$279 * by lower Epclusa sales resulting in
$1,407

$3,325 lower inventory and some loss of


$3,229
$898

market share due to increased


$681

$628 $579
competition
$2,576
Europe:
$835

$775

$487 $401
$604

YoY and sequential decreases


primarily due to competitive dynamics
and unfavorable currency movements
Other International:
$2,052

$2,040
$2,034

$2,022

$1,688
YoY and sequential decreases
primarily driven by lower patient starts
and competitive dynamics in Japan

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

U.S. Europe Other Int'l One-time Adj

* Q2 16 is favorably impacted by $279 million for a one-time adjustment of the sales return reserve.

21
Total HCV Product Sales by Product

$ in millions Q1 2017 down 40% from Q1 2016

$4,294
$3,986

$1,277 $3,325

$1,358
$3,229

$541
$825
$2,576
$313

$1,048
$640

$892
$3,017

$2,564

$1,860

$1,640

$1,371
Q1 16 Q2 16* Q3 16 Q4 16 Q1 17

Harvoni Epclusa Sovaldi

* Q2 16 is favorably impacted by $279 million for a one-time adjustment of the sales return reserve.

22
Changing Dynamics Anticipated within the HCV Market

2014 2015 2016 & Beyond

Warehoused pool of patients Lower patient starts


cued-up and ready for therapy
High percentage of patients with Higher percentage of patients with
advanced disease (F3/F4) earlier-stage disease (F0-F2) and
less urgency for treatment

Very high market shares Increased competition

Meaningful 24-week usage of Greater proportion of early


Sovaldi; higher 12-week usage of disease patients receive 8-week
Harvoni therapy

23
U.S. HCV Estimated Patient Initiations: 2001-2016

HCV treatment is characterized by surges following new class introductions

300

256
250
Launch 231
of Sovaldi
Launch of & Harvoni
200
Patient Starts (in 000s)

Pegylated
Interferons
154
145
150
126 Launch of
113 Protease
98 101 Inhibitors
94
100 87
79
70 72
59 59
50
32

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Gilead estimates and 3rd party databases. 24


HCV Patient Initiations on Sofosbuvir-Based Regimens
(in thousands)

113
100
31
19
88
80
15 75
10 Japan
7
30 27
21
24 24
Europe

52 54 53 U.S.
46 44

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17
Note: Graph illustrates the estimated number of patients that started therapy with a Gilead HCV drug for each quarter. Patient numbers are subject to adjustments.

Sovaldi was approved in the U.S. in December 2013 and in the EU in January 2014. Harvoni was approved in the U.S. in October 2014 and in the EU in November
2014. Epclusa was approved in the U.S. in June 2016 and in the EU in July 2016. In Japan, Sovaldi launched in May 2015 and Harvoni launched in September 2015.
25
U.S.: Profile of HCV Patients that are Intended for Treatment
with a Sofosbuvir-Based Regimen

Q1 2016 Q1 2017

Treatment Treatment
Experienced Experienced
11% 8%

Patient Type
Treatment Treatment
Nave Nave
89% 92%

F4 F4
16% 9%
Fibrosis Score F3
F0-F2
F3 F0-F2 29%
58% 26% 62%

Source: Gilead market research.


Note: Fibrosis score is based on the METAVIR scoring system. 26
HCV Diagnosis Rates in the U.S. have Increased Significantly
Since the Launch of Sovaldi in December 2013

Estimated New HCV Diagnosis in the U.S. by Year (in 000s)

Newly diagnosed patients


have lower fibrosis scores
(the proportion of newly
diagnosed HCV patients
with F3/F4 has dropped
150 from ~51% in 2011 to
128 ~42% in 2015)

89 90 95

2011 2012 2013 2014 2015

Source: Analysis of Quest and Medivo lab data.


Projected data based on Quest and Medivo data capturing ~70% of lab tests. 27
Continued Effort to Reach More People with HCV

Launched new Harvoni


advertising campaign Let Go
in the United States

Branded television
advertisements build on prior
disease awareness campaign

Anticipated to run in segments


throughout 2017

Goal is to encourage
diagnosed patients to seek
treatment

28
HIV
Top Prescribed HIV Regimens

U.S. Europe-5*

Rank Nave All Patients Rank Nave All Patients

1 Genvoya Genvoya 1 Other STR Other STR

2 Other STR Atripla 2 Stribild Eviplera

3 Stribild Other STR 3 Eviplera Atripla

4 Odefsey Stribild 4 Genvoya Stribild

Truvada + other 3rd Truvada + other 3rd


5 Complera Complera 5
Agent Agent

US Source: Ipsos Healthcare HIV U.S. Therapy Monitor/Scope Q4 2016. EU Nave Source: Ipsos Healthcare HIV EU Scope Q4 2016.
EU All Patient Source: Ipsos Healthcare HIV EU Therapy Monitor Q3 2016.
*Europe-5 comprised of France, Spain, Italy, UK, and Germany.

Gilead STR

30
TAF-Containing Total HIV Product Sales

Q1 2017 up 44% from Q4 2016


$ in millions
$1,247

$251

$867
$227
$149
$654
$155
$88
$421 $105

$769
$61
$58

$563
$461
$169
$302
$158

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

Genvoya Odefsey Descovy

Note: Genvoya was launched in France and Italy in February 2017.


31
U.S. HIV Market Dynamics

Estimated Patients in 000s

~1,242
~1,081

~864

~684
~87%

~80%
~79%

HIV Infected Diagnosed On Antiretroviral On a Gilead HIV


Treatment Product

Sources: CDC and Ipsos Healthcare HIV U.S. Therapy Monitor/Scope Q4 2016. 32
Gilead U.S. Share in HIV Treatment Nave Patients
% of Nave Patients
Initiating Therapy

Base: All initiations within each quarter.


Source: Ipsos Healthcare HIV U.S. Therapy Monitor/Scope Q4 2016.
33
TAF Portfolio Uptake in the U.S.*

Launched Aligned Monthly TRx

Triumeq (ViiV)

Months Post Launch

Source: Based on data derived from IMS NPA Monthly.


*As measured post launch for respective products. 34
TAF Portfolio Uptake in Germany*
Launched Aligned Monthly Packs
Packs/Month

Triumeq (ViiV)
Atripla

Stribild

Months Post Launch

Source: Based on data derived from IMS PharmaScope.


*As measured post launch for respective products. 35
John F. Milligan, Ph.D.
President and CEO
Pipeline Product Candidates

Phase Regulatory
1 2 3 Submissions
HIV
B/F/TAF*
Descovy - PrEP
GS-9620 (TLR-7 agonist)
Liver Diseases
HCV
SOF/VEL/VOX** (pan-genotypic NS3 protease inhibitor) U.S. and EU Regulatory Submission

HBV
GS-9620 (TLR-7 agonist)
GS-9688 (TLR-8 agonist)
NASH/Other Liver Diseases
Selonsertib*** (ASK-1 inhibitor) - NASH
Selonsertib*** (ASK-1 inhibitor) - Alcoholic Hepatitis
GS-9674 (FXR agonist) - NASH
GS-9674 (FXR agonist) - PBC
GS-9674 (FXR agonist) - PSC
GS-0976 (ACC inhibitor) - NASH

*Bictegravir is ab b reviated B and was formerly called GS-9883.


**Velpatisivir is ab b reviated VEL and was formerly called GS-5816. Voxilaprevir is ab b reviated VOX and was formerly called GS-9857.
***Formerly called GS-4997.

37
Pipeline Product Candidates (continued)
Phase Regulatory
1 2 3 Submissions
Hematology/Oncology
Idelalisib (PI3K delta inhibitor) - Relapsed/Refractory CLL
Andecaliximab* (MMP9 mAb inhibitor) - Gastric Cancer
Entospletinib (Syk inhibitor) - Hematological Malignancies
Entospletinib (Syk inhibitor) - AML
Tirabrutinib** (BTK inhibitor) - B-cell Malignancies
Andecaliximab* (MMP9 mAb inhibitor) - Solid Tumors
GS-5829 (BET inhibitor) - Solid Tumors

Inflammation/Respiratory
Filgotinib (JAK1 inhibitor) - Rheumatoid Arthritis
Filgotinib (JAK1 inhibitor) - Crohn's Disease
Filgotinib (JAK1 inhibitor) - Ulcerative Colitis
Filgotinib (JAK1 inhibitor) - Various Inflammatory Diseases
Presatovir*** (fusion inhibitor) - Respiratory Syncytial Virus
Entospletinib (Syk inhibitor) - cGVHD
Andecaliximab* (MMP9 mAb inhibitor) - Cystic Fibrosis
Andecaliximab* (MMP9 mAb inhibitor) - Rheumatoid Arthritis
GS-9876 (Syk inhibitor) - Rheumatoid Arthritis
GS-9876 (Syk inhibitor) - Sjogren's Syndrome
GS-9876 (Syk inhibitor) - Cutaneous Lupus Erythematosus

Other
GS-5734 (Nuc inhibitior) - Ebola

*Formerly called GS-5745. **Formerly called GS-4059. ***Formerly called GS-5806. 38


HIV
Bictegravir (B)/F/TAF
Bictegravir is a novel integrase inhibitor
In development with FTC and TAF as the
single-tablet regimen B/F/TAF

Target profile:
High barrier to resistance
Efficacy against INSTI-associated resistance
Once-daily dosing
Excellent tolerability and safety
Minimal drug-drug interactions

Phase 3 studies fully enrolled with data anticipated mid-2017


NDA/MAA submission anticipated Q3 2017
48-week data from the Phase 2 study comparing bictegravir with
dolutegravir previously presented at CROI (Seattle)

40
B/F/TAF Phase 3 Studies

Adult B/F/TAF vs ABC/DTG/3TC n = ~600

Tx-Nave B/F/TAF vs DTG + F/TAF n = ~600

Adult From ABC/DTG/3TC n = ~550

Switch From Boosted PI (DRV or ATV) n = ~550

Womens Switch From Current Regimen n = ~400

41
Nonalcoholic Steatohepatitis
(NASH)
NASH Data Featured at EASL 2017 Meeting

Gilead NASH data featured in 20


abstracts, including 9 oral
presentations at EASL

Key abstracts presented at


opening and general sessions
Data showing role of fibrosis as
key driver of NASH clinical
disease progression
Proof of concept data for GS-0976
(ACC inhibitor)

43
Approach to NASH:
Compounds with Distinct Mechanisms of Action

Hepatocyte Fibrogenesis/Matrix
Dysfunction Remodeling

GS-0976 Lipotoxicity Cell Signaling


(ACC)
GS-9674 NASH
(FXR)

Selonsertib
(GS-4997, ASK1)

ACC, acetyl CoA carboxylase; ASK1, apoptosis signal-regulating kinase 1; FXR, farnesoid X receptor
44
NASH in the U.S.

Non-Alcoholic
Fatty Liver
NAFLD
~75 Million
Disease Spectrum

Non-Alcoholic
Steatohepatitis ~12 Million
NASH

NASH with
Fibrosis ~3 Million

45
Rationale for Focusing on NASH Patients with F3/F4

F0
Cum Survival (%)

F1
F2
F3

F4

Follow-up (years)

Less than 1% of NASH patients have confirmed diagnosis


25% of diagnosed patients have F3/F4
F4: More clinical events, but higher efficacy bar
to demonstrate benefit
46
Inflammation
Filgotinib:
Phase 3 Studies Enrolling in RA, UC, and Crohns

Methotrexate-Nave n = 1,200

RA Methotrexate-Inadequate Responder n = 1,650

Biologic-Inadequate Responder n = 423

UC Biologic Experienced and Nave (Induction) Maintenance n = 1,300

CD Biologic Experienced and Nave (Induction) Maintenance n = 1,320

48
Appendix Slides
Pipeline Milestones Anticipated in 2017 - 2018

HIV
Q2 17 Achieve 48-week endpoint in Phase 3 studies in treatment-nave
B/F/TAF and switch patients
Q3 17 Submit U.S. NDA and EU MAA
GS-9620 Q3 17 Complete 6mg cohort Phase 1 study in HIV cure
Descovy Q4 17 Complete enrollment of Phase 3 study in PrEP
Hematology/Oncology
Q3 17 Initiate Phase 2 study with R-CHOP in DLBCL
Entospletinib
Q3 17 Achieve primary endpoint in Phase 2 study in AML
Andecaliximab Q3 17 Interim analysis (futility) from Phase 3 study for gastric cancer
(GS-5745) Q1 18 Complete Phase 2 study with nivolumab for gastric cancer
Tirabrutinib Achieve 24-week endpoint in Phase 2 combination studies in R/R
Q2 18
(GS-4059) CLL
Other
GS-5734 Q1 18 Complete Phase 2 study in ebola survivors

50
Pipeline Milestones Anticipated in 2017 - 2018
(Continued)

HBV
Vemlidy Q1 17 Approved in the EU
Achieve 24-week endpoint in Phase 2 study in treatment-nave
GS-9620 Q1 17
patients
NASH, PBC, PSC, and AH
Selonsertib Q1 17 Initiated Phase 3 study in NASH
(GS-4997) Q2 18 Complete Phase 2 study in AH
Q4 17 Interim analysis from Phase 2 study in PBC and PSC
GS-9674
Q1 18 Complete Phase 2 study in NASH

GS-0976 Q3 17 Complete Phase 2 study in NASH


HCV
Q1 17 Submitted EU MAA
SOF/VEL/VOX Q3 17 Approval in the U.S. (PDUFA August 8)
Q4 17 Approval in the EU

51
Pipeline Milestones Anticipated in 2017 - 2018
(Continued)

Inflammation/Respiratory

Q1 17 Initiate Phase 2 studies in various inflammatory diseases


Q1 18 Initiate Phase 2 study with GS-9876 in RA
Filgotinib 1H 18 Interim analysis from Phase 3 study in UC
Q2 18 Complete Phase 2 study in ankylosing spondylitis
Q2 18 Complete Phase 2 study in psoriatic arthritis

Andecaliximab Q2 18 Complete Phase 2 study in RA


(GS-5745) 2H 18 Complete Phase 2 study in CF
Q3 17 Complete RSV Phase 2 study in adults with infection in lower
respiratory tract
Presatovir Q3 17 Complete Phase 2 study in hospitalized adults
(formerly GS-5806) Q2 18 Complete Phase 2 study in lung transplant patients
2H 18 Complete Phase 2 study in adults with infection in upper
respiratory tract
Entospletinib Q2 18 Interim analysis from Phase 2 study in cGVHD
Q1 18 Complete Phase 2 study in RA
GS-9876 2H 18 Complete Phase 2 study in Sjogrens syndrome and cutaneous
lupus erythematosus
52
European Product Sales
FX impact to European revenues was unfavorable $20 million QoQ and
unfavorable $87 million YoY
Q1 16 Q1 17 YoY Excl FX
Q1 2017 down 23% (-17% excluding FX) from Q1 2016
Harvoni $555 $243 (56%) (53%)

Truvada $251 $189 (25%) (20%)


$1,637 $1,612
Epclusa $0 $138 NM NM
$1,412 $1,415
$1,266 Eviplera $146 $125 (14%) (8%)
$ in millions

Sovaldi $280 $106 (62%) (60%)

Atripla $143 $94 (34%) (30%)

Genvoya $16 $87 444% 494%

Viread $76 $71 (7%) 0%

Stribild $81 $67 (17%) (11%)

AmBisome $51 $52 2% 10%


Q1 16 Q2 16 Q3 16 Q4 16 Q1 17
Descovy $0 $37 NM NM

Odefsey $0 $23 NM NM

Other $38 $34 (11%) (4%)

Total $1,637 $1,266 (23%) (17%)

53
Outstanding Adjusted Debt
(in billions)

Jun. 30, Sep. 30, Dec. 31, Mar. 31,


2016 2016 2016 2017

Adjusted Debt*
(Senior Unsecured $22.30 $27.29 $26.56 $26.53
Notes and Floating Rate
Borrowings)
Total Debt to Adjusted
~1.04x ~1.34x ~1.41x ~1.48x
EBITDA**

*Adjusted Debt amount shown at face value.

**Represents the last twelve months of adjusted EBITDA.

Total interest expense and amortization from all issued debt is expected to be approximately $1,020 million for full year 2017.

Please refer to the GAAP to non-GAAP table for a reconciliation of the non-GAAP measures presented above.

54
GAAP to Non-GAAP Reconciliation of Outstanding Adjusted
Debt and Adjusted EBITDA
(in billions)

Jun. 30, Sep. 30, Dec. 31, Mar. 31,


2016 2016 2016 2017
Senior Unsecured Notes and Floating rate Borrowings, net $22.13 $27.07 $26.35 $26.32
Debt Discounts, premiums and issuance costs 0.17 0.22 0.21 0.21
Total Adjusted Debt1 $22.30 $27.29 $26.56 $26.53

Last Twelve Months Ended


Jun. 30, Sep. 30, Dec. 31, Mar. 31,
2016 2016 2016 2017
Net income attributable to Gilead $16.35 $15.08 $13.50 $12.63
Add: Interest expense & Other income (expense), net 0.59 0.60 0.54 0.54
Add: Tax 3.47 3.54 3.61 3.60
Add: Depreciation 0.17 0.17 0.18 0.19
Add: Amortization 0.95 0.97 0.98 0.99
Adjusted EBITDA2 $21.52 $20.36 $18.81 $17.95

Adjusted Debt to Adjusted EBITDA ratio ~1.04x ~1.34x ~1.41x ~1.48x

1 Adjusted Debt amount shown at face value.


2 Amounts may not sum due to rounding.

55
Q1 2017 Earnings Results

May 2, 2017

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