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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
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
* 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
$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
$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
$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
*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
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
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
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
13
Other Select Financial Information
(in millions, except days sales outstanding)
Diluted Shares Used in Per Share Calculation for the Quarter 1,327 1,320
* 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
15
Q1 2017 Share Activity
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)
Non-GAAP**
* 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)
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
$628 $579
competition
$2,576
Europe:
$835
$775
$487 $401
$604
$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
* 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
$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
* 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
23
U.S. HCV Estimated Patient Initiations: 2001-2016
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
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%
89 90 95
Branded television
advertisements build on prior
disease awareness campaign
Goal is to encourage
diagnosed patients to seek
treatment
28
HIV
Top Prescribed HIV Regimens
U.S. Europe-5*
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
$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
~1,242
~1,081
~864
~684
~87%
~80%
~79%
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
Triumeq (ViiV)
Triumeq (ViiV)
Atripla
Stribild
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
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
Target profile:
High barrier to resistance
Efficacy against INSTI-associated resistance
Once-daily dosing
Excellent tolerability and safety
Minimal drug-drug interactions
40
B/F/TAF Phase 3 Studies
41
Nonalcoholic Steatohepatitis
(NASH)
NASH Data Featured at EASL 2017 Meeting
43
Approach to NASH:
Compounds with Distinct Mechanisms of Action
Hepatocyte Fibrogenesis/Matrix
Dysfunction Remodeling
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)
Methotrexate-Nave n = 1,200
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
51
Pipeline Milestones Anticipated in 2017 - 2018
(Continued)
Inflammation/Respiratory
Odefsey $0 $23 NM NM
53
Outstanding Adjusted Debt
(in billions)
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**
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)
55
Q1 2017 Earnings Results
May 2, 2017