Ledipasvir/Sofosbuvir

Product Sales Excluding Veklury Increased Year-Over-Year by 7% for Full Year 2023 Biktarvy Sales Increased Year-Over-Year by 14% for Full Year 2023 Oncology Sales Increased Year-Over-Year by 37% for Full Year 2023 FOSTER CITY, Calif.--(BUSINESS WIRE)-- Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results of operations for the fourth quarter and full year 2023. “This was another strong year of revenue growth for Gilead’s base business, driven by both HIV and Oncology,” said Daniel O’Day, Gilead’s Chairman and Chief Executive Officer. “The strength of the business provides a solid foundation as we enter a new catalyst-rich phase for the company. We are expecting several milestones in 2024, including updates on long-acting HIV prevention and treatment, Cell Therapy and Trodelvy.” Fourth Quarter 2023 Financial Results Total fourth quarter 2023 revenue decreased 4% to $7.1 billion compared to the same period in 2022, primarily due to lower Veklury® (remdesivir) and HIV sales, partially offset by higher Oncology sales. Diluted Earnings Per Share (“EPS”) decreased to $1.14 in the fourth quarter 2023 compared to $1.30 in the same period in 2022, primarily due to higher total costs and expenses, and lower Veklury revenues, partially offset by unrealized gains on equity investments in 2023 compared to losses in 2022, and lower tax expense. Non-GAAP diluted EPS increased to $1.72 in the fourth quarter 2023 compared to $1.67 in the same period in 2022, primarily due to lower total costs and expenses, partially offset by lower Veklury revenues. As of December 31, 2023, Gilead had $8.4 billion of cash, cash equivalents and marketable debt securities compared to $7.6 billion as of December 31, 2022. During the fourth quarter 2023, Gilead generated $2.2 billion in operating cash flow. During the fourth quarter 2023, Gilead paid cash dividends of $943 million and utilized $150 million to repurchase common stock. Fourth Quarter 2023 Product Sales Total fourth quarter 2023 product sales decreased 4% to $7.1 billion compared to the same period in 2022. Total product sales, excluding Veklury, of $6.3 billion were flat compared to the same period in 2022, with higher Oncology sales partially offset by lower HIV sales. HIV product sales decreased 2% to $4.7 billion in the fourth quarter 2023 compared to the same period in 2022, primarily driven by lower average realized price due to channel mix, partially offset by higher demand and channel inventory dynamics. Biktarvy® (bictegravir 50mg/emtricitabine (“FTC”) 200mg/tenofovir alafenamide (“TAF”) 25mg) sales increased 7% to $3.1 billion in the fourth quarter 2023 compared to the same period in 2022, primarily reflecting higher demand, partially offset by lower average realized price due to channel mix. Descovy® (FTC 200mg/TAF 25mg) sales decreased 5% to $509 million in the fourth quarter 2023 compared to the same period in 2022, primarily driven by unfavorable pricing dynamics in the United States, partially offset by higher demand and channel inventory dynamics. The Liver Disease portfolio sales were $691 million in the fourth quarter 2023 and remained flat compared to the same period in 2022. Sales were impacted by unfavorable pricing dynamics, offset by higher demand across chronic hepatitis C virus (“HCV”) and chronic hepatitis delta virus (“HDV”) products. Cell Therapy product sales increased 11% to $466 million in the fourth quarter 2023 compared to the same period in 2022. Yescarta® (axicabtagene ciloleucel) sales increased 9% to $368 million in the fourth quarter 2023 compared to the same period in 2022, primarily driven by strong demand in relapsed or refractory (“R/R”) large B-cell lymphoma (“LBCL”) outside the United States. Tecartus® (brexucabtagene autoleucel) sales increased 19% to $98 million in the fourth quarter 2023 compared to the same period in 2022, driven by increased demand in R/R adult acute lymphoblastic leukemia (“ALL”) and in R/R mantle cell lymphoma (“MCL”). Trodelvy® (sacituzumab govitecan-hziy) sales increased 53% to $299 million in the fourth quarter 2023 compared to the same period in 2022, reflecting higher demand in both the United States and Europe. Veklury sales decreased 28% to $720 million in the fourth quarter 2023 compared to the same period in 2022, primarily driven by lower rates of COVID-19 related hospitalizations. Veklury sales generally reflect COVID-19 related rates and severity of infections and hospitalizations, as well as the availability, uptake and effectiveness of vaccinations and alternative treatments for COVID-19. Fourth Quarter 2023 Product Gross Margin, Operating Expenses and Tax Product gross margin was 70.4% in the fourth quarter 2023 compared to 81.0% in the same period in 2022, primarily driven by restructuring expenses related to changes in our manufacturing strategy, intangible asset amortization expenses related to Trodelvy following approval for pretreated HR+/HER2- metastatic breast cancer in February 2023, and product mix. Non-GAAP product gross margin was 86.1% in the fourth quarter 2023 compared to 86.8% in the same period in 2022, primarily driven by product mix. Research and development (“R&D”) expenses were $1.4 billion in the fourth quarter 2023 compared to $1.5 billion in the same period in 2022, driven by the timing of clinical activities and valuation adjustments to the MYR-related contingent consideration, partially offset by increased investments in Oncology. Non-GAAP R&D expenses were $1.5 billion in the fourth quarter 2023 and in the same period in 2022. Decreases due to the timing of clinical activities were offset by increased investments in Oncology. Acquired in-process research and development (“IPR&D”) expenses were $347 million in the fourth quarter 2023, primarily driven by payments related to collaborations with Arcellx, Inc. (“Arcellx”), Assembly Biosciences, Inc. (“Assembly”), and Compugen Ltd. (“Compugen”), as well as a milestone payment related to the acquisition of XinThera, Inc. (“XinThera”). Selling, general and administrative (“SG&A”) and non-GAAP SG&A expenses were $1.6 billion in the fourth quarter 2023 compared to $2.0 billion in the same period in 2022. The decrease was primarily driven by a 2022 charge related to the termination of the Trodelvy collaboration agreement with Everest Medicines (“Everest”) that did not repeat. The effective tax rate (“ETR”) was 14.3% in the fourth quarter 2023 compared to 19.6% in the same period in 2022, primarily due to remeasurement of certain deferred tax liabilities and non-taxable unrealized gains on equity investments. Non-GAAP ETR was 17.1% in the fourth quarter 2023 compared to 16.8% in the same period in 2022. Full Year 2023 Financial Results Total full year 2023 revenue decreased 1% to $27.1 billion compared to 2022, driven by a reduction of $1.7 billion in Veklury sales, largely offset by higher HIV and Oncology sales. Diluted EPS increased to $4.50 in the full year 2023 compared to $3.64 in 2022, primarily due to lower IPR&D impairment expenses, lower unrealized losses on equity investments, and higher interest income, partially offset by higher cost of goods sold and operating expenses, and lower Veklury sales. Non-GAAP diluted EPS decreased to $6.72 in the full year 2023 compared to $7.26 in 2022. This was primarily driven by higher total costs and expenses, as well as lower Veklury sales, partially offset by a decrease in tax reserves as a result of reaching an agreement with a tax authority, and higher interest income. Full Year 2023 Product Sales Total full year 2023 product sales of $26.9 billion were relatively flat compared to the same period in 2022, with lower Veklury sales largely offset by higher HIV and Oncology sales. Total product sales, excluding Veklury, increased 7% to $24.7 billion in the full year 2023 compared to 2022, primarily driven by higher HIV and Oncology sales. HIV product sales increased 6% to $18.2 billion in the full year 2023 compared to 2022, primarily reflecting higher demand across treatment and prevention, in addition to higher average realized price and favorable channel inventory dynamics. Biktarvy sales increased 14% to $11.8 billion in the full year 2023 compared to 2022, primarily reflecting higher demand as well as higher average realized price. Descovy sales increased 6% to $2.0 billion in the full year 2023 compared to 2022, primarily driven by favorable channel inventory dynamics and higher demand. The Liver Disease portfolio sales decreased 1% to $2.8 billion in the full year 2023 compared to 2022. The decrease was primarily driven by unfavorable HCV pricing dynamics and foreign exchange rates, partially offset by higher demand across HCV, HDV and chronic hepatitis B virus (“HBV”) products. Cell Therapy product sales increased 28% to $1.9 billion in the full year 2023 compared to 2022. Yescarta sales increased 29% to $1.5 billion in the full year 2023 compared to 2022, primarily driven by increased demand in R/R LBCL. Tecartus sales increased 24% to $370 million in the full year 2023 compared to 2022, primarily driven by increased demand in in R/R ALL and R/R MCL. Trodelvy sales increased 56% to $1.1 billion in the full year 2023 compared to 2022, reflecting strong demand in new and existing geographies. Veklury sales decreased 44% to $2.2 billion in the full year 2023 compared to 2022, primarily driven by lower rates of COVID-19 related hospitalizations in all regions. Full Year 2023 Product Gross Margin, Operating Expenses and Tax Product gross margin was 75.9% in the full year 2023 compared to 79.0% in 2022, primarily driven by restructuring expenses related to the aforementioned changes in our manufacturing strategy, increased amortization expenses, and product mix. Non-GAAP product gross margin was 86.3% in the full year 2023 compared to 86.6% in 2022, primarily driven by product mix. R&D and non-GAAP R&D expenses were $5.7 billion in the full year 2023 compared to $5.0 billion in 2022. This primarily reflects increased clinical activities across our Oncology and Virology programs. Acquired IPR&D expenses were $1.2 billion in the full year 2023, primarily driven by payments related to the collaboration with Arcellx, as well as the acquisition of XinThera and Tmunity Therapeutics Inc. (“Tmunity”). SG&A expenses were $6.1 billion in the full year 2023 compared to $5.7 billion in 2022. Non-GAAP SG&A expenses were $6.1 billion in the full year 2023 compared to $5.6 billion in 2022. The increases in SG&A and non-GAAP SG&A expenses are primarily due to a $525 million litigation settlement with certain plaintiffs in the HIV antitrust litigation and increased commercial activities in Oncology and HIV, partially offset by the 2022 charge related to the termination of the Trodelvy collaboration agreement with Everest. The ETR and non-GAAP ETR were 18.2% and 15.2%, respectively, in the full year 2023 compared to 21.5% and 19.3%, respectively, in 2022. Lower ETR is primarily due to a decrease in tax reserves as a result of reaching agreement with a tax authority on certain tax positions. Guidance and Outlook Gilead is providing full-year 2024 guidance below: Total product sales between $27.1 billion and $27.5 billion. Total product sales, excluding Veklury, between $25.8 billion and $26.2 billion. Total Veklury sales of approximately $1.3 billion. Diluted EPS between $5.15 and $5.55. Non-GAAP diluted EPS between $6.85 and $7.25. Additional information and a reconciliation between GAAP and non-GAAP financial information for the 2024 guidance is provided in the accompanying tables. The financial guidance is subject to a number of risks and uncertainties. See the Forward-Looking Statements section below. Key Updates Since Our Last Quarterly Release Virology Announced that the Phase 3 OAKTREE trial of obeldesivir in non-hospitalized participants without risk factors for developing severe COVID-19 did not meet its primary endpoint of improvement in time to symptom alleviation. Obeldesivir was well-tolerated in this large study population. Oncology Announced that the Phase 3 EVOKE-01 study of Trodelvy versus docetaxel in previously treated metastatic non-small cell lung cancer did not meet its primary endpoint of overall survival. While not statistically powered, we observed an encouraging trend in a subgroup of patients non-responsive to prior anti-PD-(L)1 immunotherapy, that we may potentially explore further. Presented new data at the San Antonio Breast Cancer Symposium 2023, including a post-hoc, subgroup analysis of clinical outcomes by age from the Phase 3 TROPiCS-02 study of Trodelvy in HR+/HER2- metastatic breast cancer. Presented new data at the American Society of Hematology 2023 Annual Meeting (“ASH”) including long-term follow-up across Yescarta trials in R/R LBCL, first-line high-risk LBCL, and R/R follicular lymphoma, as well as real-world data for Tecartus in R/R MCL and B-cell ALL. Received U.S. Food and Drug Administration (“FDA”) approval of Yescarta’s label update to include overall survival (“OS”) data from the Phase 3 ZUMA-7 study, which showed a statistically significant OS improvement for Yescarta in second-line R/R LBCL versus standard of care. Received FDA approval of a manufacturing process change resulting in reduced median turnaround time for Yescarta in the U.S. to an anticipated 14 days (from 16 days previously). Our partner Arcellx presented updated data at ASH from the Phase 1 trial evaluating anitocabtagene autoleucel (“anito-cel”) in R/R multiple myeloma. With 26.5 months of median follow-up, the data demonstrated continued deep and durable responses, including in patients with extramedullary disease, with median progression-free survival not reached. In addition, no cases of delayed neurotoxicity events or parkinsonian symptoms were observed. Announced expansion of the Arcellx collaboration to include exercising an option for the ARC-SparX ACLX-001 program in multiple myeloma, expanding the scope of the existing anito-cel collaboration to include lymphomas, and a further equity investment of $200 million. Announced an amended collaboration agreement with Arcus Biosciences, Inc. (“Arcus”), including an update to the domvanalimab development collaboration program, and an additional $320 million equity investment. Announced an exclusive license agreement with Compugen for later-stage development and commercialization of novel pre-clinical anti-IL18 binding protein antibodies, including COM503, that have the potential to treat various tumor types. Corporate Announced that Ted Love has joined Gilead’s Board of Directors. Named to Dow Jones Sustainability World Index for third consecutive year and added to the North America Index for the first year, reflecting Gilead’s ongoing commitment to corporate responsibility and sustainability. The company’s Board of Directors declared a quarterly dividend of $0.77 per share of common stock for the first quarter of 2024. The dividend is payable on March 28, 2024, to stockholders of record at the close of business on March 15, 2024. Future dividends will be subject to Board approval. Certain amounts and percentages in this press release may not sum or recalculate due to rounding. Conference Call At 2:00 p.m. Pacific Time today, Gilead will host a conference call to discuss Gilead’s results. A live webcast will be available on and will be archived on for one year. Non-GAAP Financial Information The information presented in this document has been prepared 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 financial information generally excludes acquisition-related expenses including amortization of acquired intangible assets and inventory step-up charges, and other items that are considered unusual or not representative of underlying trends of Gilead’s business, fair value adjustments of equity securities and discrete and related tax charges or benefits associated with changes in tax related laws and guidelines. Although Gilead consistently excludes the amortization of acquired intangible assets from the non-GAAP financial information, management believes that it is important for investors to understand that such intangible assets were recorded as part of acquisitions and contribute to ongoing revenue generation. Non-GAAP measures may be defined and calculated differently by other companies in the same industry. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the accompanying tables. About Gilead Sciences Gilead Sciences, Inc. is a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people. The company is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19 and cancer. Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, California. Forward-Looking Statements 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 those relating to: Gilead’s ability to achieve its anticipated full year 2024 financial results, including as a result of the uncertainty of the amount and timing of Veklury revenues; Gilead’s ability to make progress on any of its long-term ambitions or strategic priorities laid out in its corporate strategy; Gilead’s ability to accelerate or sustain revenues for its virology, oncology and other programs; Gilead’s ability to realize the potential benefits of acquisitions, collaborations or licensing arrangements, including the arrangements with Arcellx, Arcus, Assembly, Compugen, Galapagos NV, MYR, Tmunity, and XinThera; patent protection and estimated loss of exclusivity for our products and product candidates; Gilead’s ability to initiate, progress or complete clinical trials within currently anticipated timeframes or at all, the possibility of unfavorable results from ongoing and additional clinical trials, including those involving Tecartus, Trodelvy (including EVOKE-01), Yescarta, anito-cel and domvanalimab, and the risk that safety and efficacy data from clinical trials may not warrant further development of Gilead’s product candidates or the product candidates of Gilead’s strategic partners; Gilead’s ability to submit new drug applications for new product candidates or expanded indications in the currently anticipated timelines; Gilead’s ability to receive regulatory approvals in a timely manner or at all, and the risk that any such approvals, if granted, may be subject to significant limitations on use; Gilead’s ability to successfully commercialize its products; the risk of potential disruptions to the manufacturing and supply chain of Gilead’s products; pricing and reimbursement pressures from government agencies and other third parties, including required rebates and other discounts; a larger than anticipated shift in payer mix to more highly discounted payer segments; market share and price erosion caused by the introduction of generic versions of Gilead products; the risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products, including Yescarta; and other risks identified from time to time in Gilead’s reports filed with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, Gilead makes estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. Gilead bases its estimates on historical experience and on various other market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There may be other factors of which Gilead is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ significantly from these estimates. Further, results for the quarter ended December 31, 2023 are not necessarily indicative of operating results for any future periods. Gilead directs readers to its press releases, annual reports on Form 10-K, quarterly reports on Form 10-Q 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. The reader is cautioned that forward-looking statements are not guarantees of future performance and is cautioned not to place undue reliance on these forward-looking statements. 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®, GILEAD SCIENCES®, KITE™, AMBISOME®, ATRIPLA®, BIKTARVY®, CAYSTON®, COMPLERA®, DESCOVY®, DESCOVY FOR PREP®, EMTRIVA®, EPCLUSA®, EVIPLERA®, GENVOYA®, HARVONI®, HEPCLUDEX®, HEPSERA®, JYSELECA®, LETAIRIS®, ODEFSEY®, SOVALDI®, STRIBILD®, SUNLENCA® , TECARTUS®, TRODELVY®, TRUVADA®, TRUVADA FOR PREP®, TYBOST®, VEKLURY®, VEMLIDY®, VIREAD®, VOSEVI®, YESCARTA® and ZYDELIG®. KEYTRUDA® is a registered trademark of Merck Sharp & Dohme LLC, a subsidiary of Merck & Co., Inc., Rahway, NJ, United States. Other trademarks are the property of their respective owners. For more information on Gilead Sciences, Inc., please visit or call the Gilead Public Affairs Department at 1-800-GILEAD-5 (1-800-445-3235). GILEAD SCIENCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except per share amounts) 2023 2022 2023 2022 Revenues: Product sales $ 7,070 $ 7,333 $ 26,934 $ 26,982 Royalty, contract and other revenues 45 56 182 299 Total revenues 7,115 7,389 27,116 27,281 Costs and expenses: Cost of goods sold 2,090 1,396 6,498 5,657 Research and development expenses 1,408 1,548 5,718 4,977 Acquired in-process research and development expenses 347 158 1,155 944 In-process research and development impairment 50 — 50 2,700 Selling, general and administrative expenses 1,608 2,020 6,090 5,673 Total costs and expenses 5,503 5,122 19,511 19,951 Operating income 1,612 2,267 7,605 7,330 Interest expense (252 ) (227 ) (944 ) (935 ) Other income (expense), net 293 (9 ) 198 (581 ) Income before income taxes 1,653 2,031 6,859 5,814 Income tax expense (236 ) (398 ) (1,247 ) (1,248 ) Net income 1,417 1,633 5,613 4,566 Net loss attributable to noncontrolling interest 12 7 52 26 Net income attributable to Gilead $ 1,429 $ 1,640 $ 5,665 $ 4,592 Basic earnings per share attributable to Gilead $ 1.15 $ 1.31 $ 4.54 $ 3.66 Shares used in basic earnings per share attributable to Gilead calculation 1,248 1,252 1,248 1,255 Diluted earnings per share attributable to Gilead $ 1.14 $ 1.30 $ 4.50 $ 3.64 Shares used in diluted earnings per share attributable to Gilead calculation 1,256 1,264 1,258 1,262 Cash dividends declared per share $ 0.75 $ 0.73 $ 3.00 $ 2.92 Research and development expenses as a % of revenues 19.8 % 20.9 % 21.1 % 18.2 % Selling, general and administrative expenses as a % of revenues 22.6 % 27.3 % 22.5 % 20.8 % GILEAD SCIENCES, INC. TOTAL REVENUE SUMMARY (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except percentages) 2023 2022 Change 2023 2022 Change Product sales: HIV $ 4,693 $ 4,772 (2 )% $ 18,175 $ 17,194 6 % Oncology 765 614 24 % 2,932 2,139 37 % Liver Disease 691 694 — % 2,784 2,798 (1 )% Other 201 252 (20 )% 859 946 (9 )% Total product sales excluding Veklury 6,350 6,333 — % 24,750 23,077 7 % Veklury 720 1,000 (28 )% 2,184 3,905 (44 )% Total product sales 7,070 7,333 (4 )% 26,934 26,982 — % Royalty, contract and other revenues 45 56 (21 )% 182 299 (39 )% Total revenues $ 7,115 $ 7,389 (4 )% $ 27,116 $ 27,281 (1 )% GILEAD SCIENCES, INC. NON-GAAP FINANCIAL INFORMATION(1) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except percentages) 2023 2022 Change 2023 2022 Change Non-GAAP: Cost of goods sold $ 980 $ 968 1 % $ 3,697 $ 3,602 3 % Research and development expenses $ 1,452 $ 1,544 (6 )% $ 5,720 $ 4,968 15 % Acquired IPR&D expenses(2) $ 347 $ 158 NM $ 1,155 $ 944 22 % Selling, general and administrative expenses $ 1,597 $ 2,020 (21 )% $ 6,060 $ 5,587 8 % Other income (expense), net $ 104 $ 52 NM $ 365 $ 77 NM Diluted EPS $ 1.72 $ 1.67 3 % $ 6.72 $ 7.26 (7 )% Product gross margin 86.1 % 86.8 % -66 bps 86.3 % 86.6 % -38 bps Research and development expenses as a % of revenues 20.4 % 20.9 % -49 bps 21.1 % 18.2 % 288 bps Selling, general and administrative expenses as a % of revenues 22.4 % 27.3 % -490 bps 22.3 % 20.5 % 187 bps Operating margin 38.5 % 36.5 % 197 bps 38.7 % 44.6 % -598 bps Effective tax rate 17.1 % 16.8 % 22 bps 15.2 % 19.3 % -416 bps ________________________________ NM - Not Meaningful (1) Refer to Non-GAAP Financial Information section above for further disclosures on non-GAAP financial measures. A reconciliation between GAAP and non-GAAP financial information is provided in the tables below. (2) Equal to GAAP financial information. GILEAD SCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except percentages and per share amounts) 2023 2022 2023 2022 Cost of goods sold reconciliation: GAAP cost of goods sold $ 2,090 $ 1,396 $ 6,498 $ 5,657 Acquisition-related – amortization(1) (580 ) (428 ) (2,271 ) (2,013 ) Restructuring . (479 ) — (479 ) (42 ) Other(2) (51 ) — (51 ) — Non-GAAP cost of goods sold $ 980 $ 968 $ 3,697 $ 3,602 Product gross margin reconciliation: GAAP product gross margin 70.4 % 81.0 % 75.9 % 79.0 % Acquisition-related – amortization(1) 8.2 % 5.8 % 8.4 % 7.5 % Restructuring . 6.8 % — % 1.8 % 0.2 % Other(2) 0.7 % — % 0.2 % — % Non-GAAP product gross margin 86.1 % 86.8 % 86.3 % 86.6 % Research and development expenses reconciliation: GAAP research and development expenses $ 1,408 $ 1,548 $ 5,718 $ 4,977 Acquisition-related – other costs(4) 59 (1 ) 22 13 Restructuring . (15 ) . (4 ) (20 ) (22 ) Non-GAAP research and development expenses $ 1,452 $ 1,544 $ 5,720 $ 4,968 IPR&D impairment reconciliation: GAAP IPR&D impairment $ 50 $ — $ 50 $ 2,700 IPR&D impairment (50 ) — (50 ) (2,700 ) Non-GAAP IPR&D impairment $ — $ — $ — $ — Selling, general and administrative expenses reconciliation: GAAP selling, general and administrative expenses $ 1,608 $ 2,020 $ 6,090 $ 5,673 Acquisition-related – other costs(4) — (1 ) (2 ) (3 ) Restructuring (11 ) . 1 (28 ) 2 Other(3) — — — (85 ) Non-GAAP selling, general and administrative expenses $ 1,597 $ 2,020 $ 6,060 $ 5,587 Operating income reconciliation: GAAP operating income $ 1,612 $ 2,267 $ 7,605 $ 7,330 Acquisition-related – amortization(1) 580 428 2,271 2,013 Acquisition-related – other costs(4) (59 ) . 2 (20 ) (10 ) Restructuring 505 . 2 527 62 IPR&D impairment 50 . — 50 2,700 Other(2)(3) 51 — 51 85 Non-GAAP operating income $ 2,739 $ 2,699 $ 10,484 $ 12,180 Operating margin reconciliation: GAAP operating margin 22.7 % 30.7 % 28.0 % 26.9 % Acquisition-related – amortization(1) 8.1 % 5.8 % 8.4 % 7.4 % Acquisition-related – other costs(4) (0.8 ) % — % (0.1 ) % — % Restructuring . 7.1 % — % 1.9 % 0.2 % IPR&D impairment 0.7 % — % 0.2 % 9.9 % Other(2)(3) 0.7 % — % 0.2 % 0.3 % Non-GAAP operating margin 38.5 % 36.5 % 38.7 % 44.6 % Other income (expense), net reconciliation: GAAP other income (expense), net $ 293 $ (9 ) $ 198 $ (581 ) (Gain) loss from equity securities, net (189 ) 61 167 657 Non-GAAP other income (expense), net $ 104 $ 52 $ 365 $ 77 GILEAD SCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION - (Continued) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except percentages and per share amounts) 2023 2022 2023 2022 Effective tax rate reconciliation: GAAP effective tax rate 14.3 % 19.6 % 18.2 % 21.5 % Income tax effect of above non-GAAP adjustments and discrete and related tax adjustments(5) 2.8 % (2.8 ) % (3.0 ) % (2.1 ) % Non-GAAP effective tax rate 17.1 % 16.8 % 15.2 % 19.3 % Net income attributable to Gilead reconciliation: GAAP net income attributable to Gilead $ 1,429 $ 1,640 $ 5,665 $ 4,592 Acquisition-related – amortization(1) 460 346 1,805 1,610 Acquisition-related – other costs(4) (59 ) 1 (29 ) (12 ) Restructuring 414 . 2 431 47 IPR&D impairment 35 — 35 2,057 (Gain) loss from equity securities, net (171 ) 60 180 630 Discrete and related tax charges(5) 12 57 326 175 Other(2)(3) 40 — 40 59 Non-GAAP net income attributable to Gilead $ 2,161 $ 2,106 $ 8,454 $ 9,158 Diluted earnings per share reconciliation: GAAP diluted earnings per share $ 1.14 $ 1.30 $ 4.50 $ 3.64 Acquisition-related – amortization(1) 0.37 0.27 1.43 1.28 Acquisition-related – other costs(4) (0.05 ) — (0.02 ) (0.01 ) Restructuring . 0.33 — 0.34 0.04 IPR&D impairment 0.03 — 0.03 1.63 (Gain) loss from equity securities, net (0.14 ) 0.05 0.14 0.50 Discrete and related tax charges(5) 0.01 0.05 0.26 0.14 Other(2)(3) 0.03 — 0.03 0.05 Non-GAAP diluted earnings per share $ 1.72 $ 1.67 $ 6.72 $ 7.26 Non-GAAP adjustment summary: Cost of goods sold adjustments $ 1,110 $ 428 $ 2,801 $ 2,055 Research and development expenses adjustments (44 ) 4 (2 ) 9 IPR&D impairment adjustments 50 — 50 2,700 Selling, general and administrative expenses adjustments 11 — 30 86 Total non-GAAP adjustments to costs and expenses 1,127 432 2,879 4,850 Other income (expense), net, adjustments (189 ) 61 167 657 Total non-GAAP adjustments before income taxes 938 493 3,046 5,507 Income tax effect of non-GAAP adjustments above (218 ) (84 ) (583 ) (1,116 ) Discrete and related tax charges(5) 12 57 326 175 Total non-GAAP adjustments to net income attributable to Gilead $ 732 $ 466 $ 2,789 $ 4,566 ______________________________ (1) Relates to amortization of acquired intangibles and inventory step-up charges. (2) Relates to a write-off of an intangible asset related to the restructuring of our collaboration with Galapagos NV during the fourth quarter of 2023. (3) Relates to donations to the Gilead Foundation, a California nonprofit organization, during the second quarter of 2022. (4) Adjustments include integration expenses, contingent consideration fair value adjustments and other expenses associated with Gilead’s acquisitions of MYR GmbH, MiroBio, Ltd., Tmunity Therapeutics, Inc. and XinThera, Inc. (5) Represents discrete and related deferred tax charges or benefits primarily associated with acquired intangible assets and transfers of intangible assets from a foreign subsidiary to Ireland and the United States. GILEAD SCIENCES, INC. RECONCILIATION OF GAAP TO NON-GAAP 2024 FULL YEAR GUIDANCE(1) (unaudited) (in millions, except percentages and per share amounts) Provided February 6, 2024 Projected product gross margin GAAP to non-GAAP reconciliation: GAAP projected product gross margin 76.0% - 77.0% Acquisition-related expenses and other ~ 9.0% Non-GAAP projected product gross margin 85.0% - 86.0% Projected operating income GAAP to non-GAAP reconciliation: GAAP projected operating income $8,700 - $9,200 Acquisition-related expenses and other ~ 2,500 Non-GAAP projected operating income $11,200 - $11,700 Projected effective tax rate GAAP to non-GAAP reconciliation: GAAP projected effective tax rate ~ 21% Income tax effect of above non-GAAP adjustments, and discrete and related tax adjustments (~ 2%) Non-GAAP projected effective tax rate ~ 19% Projected diluted EPS GAAP to non-GAAP reconciliation: GAAP projected diluted EPS $5.15 - $5.55 Acquisition-related expenses and other, and discrete and related tax adjustments ~ 1.70 Non-GAAP projected diluted EPS $6.85 - $7.25 ________________________________ (1) Our full-year guidance excludes the potential impact of any (i) acquisitions or business development transactions that have not been executed, (ii) future fair value adjustments of equity securities and (iii) discrete tax charges or benefits associated with changes in tax related laws and guidelines that have not been enacted, as Gilead is unable to project such amounts. The non-GAAP full-year guidance includes non-GAAP adjustments to actual current period results as well as adjustments for the known future impact associated with events that have already occurred, such as future amortization of our intangible assets and the future impact of discrete and related deferred tax charges or benefits primarily associated with acquired intangible assets and transfers of intangible assets from a foreign subsidiary to Ireland and the United States. GILEAD SCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) December 31, (in millions) 2023 2022 Assets Cash, cash equivalents and marketable debt securities $ 8,428 $ 7,630 Accounts receivable, net 4,660 4,777 Inventories 3,366 2,820 Property, plant and equipment, net 5,317 5,475 Intangible assets, net 26,454 28,894 Goodwill 8,314 8,314 Other assets 5,586 5,262 Total assets $ 62,125 $ 63,171 Liabilities and Stockholders’ Equity Current liabilities $ 11,280 $ 11,237 Long-term liabilities 28,096 30,725 Stockholders’ equity(1) 22,749 21,209 Total liabilities and stockholders’ equity $ 62,125 $ 63,171 ________________________________ (1) As of December 31, 2023 and 2022, there were 1,246 and 1,247 shares of common stock issued and outstanding, respectively. GILEAD SCIENCES, INC. SELECTED CASH FLOW INFORMATION (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2023 2022 2023 2022 Net cash provided by operating activities $ 2,168 $ 2,566 $ 8,006 $ 9,072 Net cash used in investing activities (726 ) (374 ) (2,265 ) (2,466 ) Net cash used in financing activities (1,100 ) (1,554 ) (5,125 ) (6,469 ) Effect of exchange rate changes on cash and cash equivalents 37 75 57 (63 ) Net change in cash and cash equivalents 380 713 673 74 Cash and cash equivalents at beginning of period 5,705 4,699 5,412 5,338 Cash and cash equivalents at end of period $ 6,085 $ 5,412 $ 6,085 $ 5,412 Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2023 2022 2023 2022 Net cash provided by operating activities $ 2,168 $ 2,566 $ 8,006 $ 9,072 Capital expenditures (214 ) (181 ) (585 ) (728 ) Free cash flow(1) $ 1,954 $ 2,386 $ 7,421 $ 8,344 ________________________________ (1) Free cash flow is a non-GAAP liquidity measure. Please refer to our disclosures in the Non-GAAP Financial Information section above. GILEAD SCIENCES, INC. PRODUCT SALES SUMMARY (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2023 2022 2023 2022 HIV Biktarvy – U.S. $ 2,588 $ 2,423 $ 9,692 $ 8,510 Biktarvy – Europe 333 295 1,253 1,103 Biktarvy – Other International 188 200 905 777 3,109 2,918 11,850 10,390 Complera / Eviplera – U.S. 6 17 47 74 Complera / Eviplera – Europe 15 37 70 113 Complera / Eviplera – Other International 3 3 12 13 24 58 129 200 Descovy – U.S. 457 479 1,771 1,631 Descovy – Europe 25 26 100 118 Descovy – Other International 28 31 114 123 509 537 1,985 1,872 Genvoya – U.S. 447 543 1,752 1,983 Genvoya – Europe 48 64 205 284 Genvoya – Other International 22 33 103 136 517 640 2,060 2,404 Odefsey – U.S. 258 295 1,012 1,058 Odefsey – Europe 71 85 294 364 Odefsey – Other International 11 11 44 47 340 392 1,350 1,469 Stribild – U.S. 15 20 72 88 Stribild – Europe 5 7 21 29 Stribild – Other International 2 3 8 10 22 29 101 127 Truvada – U.S. 12 37 82 113 Truvada – Europe 3 3 13 15 Truvada – Other International 3 5 19 18 18 45 114 147 Revenue share – Symtuza(1) – U.S. 104 97 382 348 Revenue share – Symtuza(1) – Europe 32 42 133 168 Revenue share – Symtuza(1) – Other International 3 3 13 14 139 142 529 530 Other HIV(2) – U.S. 13 4 37 15 Other HIV(2) – Europe 1 5 12 24 Other HIV(2) – Other International 1 3 7 17 15 12 56 57 Total HIV – U.S. 3,899 3,914 14,848 13,820 Total HIV – Europe 533 566 2,102 2,219 Total HIV – Other International 261 293 1,226 1,155 $ 4,693 $ 4,772 $ 18,175 $ 17,194 GILEAD SCIENCES, INC. PRODUCT SALES SUMMARY - (Continued) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2023 2022 2023 2022 Oncology Cell Therapy Tecartus – U.S. $ 66 $ 61 $ 245 $ 221 Tecartus – Europe 27 19 110 75 Tecartus – Other International 5 1 15 3 98 82 370 299 Yescarta – U.S. 187 219 811 747 Yescarta – Europe 140 103 547 355 Yescarta – Other International 42 15 140 57 368 337 1,498 1,160 Total Cell Therapy – U.S. 253 281 1,055 968 Total Cell Therapy – Europe 167 122 658 430 Total Cell Therapy – Other International 46 17 156 60 466 419 1,869 1,459 Trodelvy Trodelvy – U.S. 226 146 777 525 Trodelvy– Europe 48 44 217 143 Trodelvy – Other International 24 4 68 12 299 195 1,063 680 Total Oncology – U.S. 479 427 1,833 1,494 Total Oncology – Europe 216 166 875 573 Total Oncology – Other International 70 21 224 73 765 614 2,932 2,139 Liver Disease HCV Ledipasvir / Sofosbuvir(3) – U.S. 11 19 39 46 Ledipasvir / Sofosbuvir(3) – Europe 1 4 12 17 Ledipasvir / Sofosbuvir(3) – Other International 5 8 19 51 17 31 70 115 Sofosbuvir / Velpatasvir(4) – U.S. 216 214 859 844 Sofosbuvir / Velpatasvir(4) – Europe 74 67 323 355 Sofosbuvir / Velpatasvir(4) – Other International 89 87 355 331 378 369 1,537 1,530 Other HCV(5) – U.S. 25 27 104 115 Other HCV(5) – Europe 10 9 43 40 Other HCV(5) – Other International 3 3 12 10 37 39 160 166 Total HCV – U.S. 251 260 1,002 1,005 Total HCV – Europe 84 80 378 413 Total HCV – Other International 97 98 386 392 $ 432 $ 439 $ 1,767 $ 1,810 GILEAD SCIENCES, INC. PRODUCT SALES SUMMARY - (Continued) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2023 2022 2023 2022 HBV/HDV Vemlidy – U.S. $ 115 $ 123 $ 410 $ 429 Vemlidy – Europe 10 8 38 35 Vemlidy – Other International 92 89 414 379 217 220 862 842 Viread – U.S. 4 2 8 6 Viread – Europe 6 6 22 23 Viread – Other International 12 14 52 62 21 22 83 91 Other HBV/HDV(6) – U.S. — (1 ) — — Other HBV/HDV(6) – Europe 22 14 72 55 22 13 72 55 Total HBV/HDV – U.S. 119 124 418 435 Total HBV/HDV – Europe 37 28 133 112 Total HBV/HDV – Other International 103 103 466 441 259 255 1,017 988 Total Liver Disease – U.S. 370 384 1,421 1,440 Total Liver Disease – Europe 121 108 511 525 Total Liver Disease – Other International 200 202 852 833 691 694 2,784 2,798 Veklury Veklury – U.S. 364 395 972 1,575 Veklury – Europe 181 142 408 702 Veklury – Other International 175 462 805 1,628 720 1,000 2,184 3,905 Other AmBisome – U.S. 4 9 43 57 AmBisome – Europe 68 66 260 258 AmBisome – Other International 39 42 189 182 111 117 492 497 Letairis – U.S. 36 60 142 196 Other(7) – U.S. 28 44 118 135 Other(7) – Europe 9 13 40 65 Other(7) – Other International 17 18 66 53 54 75 225 253 Total Other – U.S. 68 113 304 388 Total Other – Europe 77 79 301 323 Total Other – Other International 56 61 255 235 201 252 859 946 Total product sales – U.S. 5,180 5,234 19,377 18,716 Total product sales – Europe 1,128 1,061 4,197 4,342 Total product sales – Other International 762 1,037 3,361 3,924 $ 7,070 $ 7,333 $ 26,934 $ 26,982 _______________________________ (1) Represents Gilead’s revenue from cobicistat (“C”), FTC and TAF in Symtuza (darunavir/C/FTC/TAF), a fixed dose combination product commercialized by Janssen Sciences Ireland Unlimited Company. (2) Includes Atripla, Emtriva, Sunlenca and Tybost. (3) Amounts consist of sales of Harvoni and the authorized generic version of Harvoni sold by Gilead’s separate subsidiary, Asegua Therapeutics LLC. (4) Amounts consist of sales of Epclusa and the authorized generic version of Epclusa sold by Gilead’s separate subsidiary, Asegua Therapeutics LLC. (5) Includes Vosevi and Sovaldi. (6) Includes Hepcludex and Hepsera. (7) Includes Cayston, Jyseleca, Ranexa and Zydelig.

Enrollment continues in global Phase 3 SUNRISE-3 trial evaluating bemnifosbuvir for treatment of COVID-19 Phase 3 SUNRISE-3 trial protocol amended to broaden eligibility criteria for high-risk patients and adapt to current COVID-19 environment Enrollment continues in Phase 2 trial evaluating combination of bemnifosbuvir and ruzasvir for treatment of hepatitis C (HCV) with initial results expected in 4Q23 Conference call at 4:30 pm ET today BOSTON, Aug. 08, 2023 (GLOBE NEWSWIRE) -- Atea Pharmaceuticals, Inc. (Nasdaq: AVIR) (“Atea”), a clinical-stage biopharmaceutical company engaged in the discovery and development of oral antiviral therapeutics for serious viral diseases, today reported financial results for the second quarter ended June 30, 2023 and provided a business update. “We continue to advance the global Phase 3 SUNRISE-3 trial for COVID-19 with an expanded global footprint and protocol modifications designed to broaden the eligibility criteria for high-risk patients and increase the study sample size to reflect the current global hospitalization and death rates. Importantly, we do not anticipate that these modifications will change the timing for this trial, as we continue to expect topline results in mid-2024 and are currently targeting a New Drug Application submission by year-end 2024,” said Jean-Pierre Sommadossi, PhD, Chief Executive Officer and Founder of Atea Pharmaceuticals. “Our strategy for COVID-19 is focused on delivering an effective treatment to the millions of patients for whom the current standard of care is not a suitable option.” “We have also advanced and are pleased with the progress of our Phase 2 combination study of bemnifosbuvir and ruzasvir for the treatment of HCV. During the second quarter of 2023, we began dosing HCV patients, and we look forward to reporting initial results from our lead-in cohort of approximately 60 patients by year-end 2023,” continued Dr. Sommadossi. “Our goal for this program is to significantly improve upon the current standard of care by offering a short duration, pan-genotypic, protease inhibitor-free treatment for patients with HCV, with or without cirrhosis.” Bemnifosbuvir for COVID-19 Update SUNRISE-3 Trial Protocol Amendment: Modifications of the SUNRISE-3 protocol are designed to broaden the high-risk patient population eligible for enrollment in the trial and to increase the study sample size to account for the lower rates of hospitalization and death that are being observed globally for COVID-19 in 2023 versus 2022. With the amendment, the patient population will be expanded to include patients ≥70 years old (regardless of other risk factors), patients ≥55 years old with one or more risk factors, patients ≥50 years old with two or more risk factors and patients ≥18 years old with certain risk factors including immunocompromised conditions, all regardless of COVID-19 vaccination status. Also, patients with decreased renal function will be eligible for the trial. Additionally, considering the currently observed low rates of hospitalization and death, the amendment modifies the trial from an adaptive design to a static design targeting enrollment of a fixed number of approximately 2,200 patients in the supportive care (monotherapy) arm compared with the original protocol which targeted approximately 1,300 patients in the same arm but allowed for a potential sample size re-estimation and increase following an interim analysis. The amendment also incorporates two interim analyses for review by the data and safety monitoring board principally for safety and futility after approximately 650 and 1,350 evaluable patients, respectively, in the supportive care (monotherapy) arm have completed Day 29. Bemnifosbuvir SUNRISE-3 Trial in High-Risk Outpatients with COVID-19: Patient enrollment continues in the global, multicenter, randomized, double-blind, placebo-controlled, registrational Phase 3 SUNRISE-3 trial evaluating bemnifosbuvir, a nucleotide polymerase inhibitor, or placebo administered concurrently with locally available standard of care (SOC). SUNRISE-3 has a global footprint with a target of approximately 330 clinical sites in approximately 30 countries and is designed to enroll high-risk outpatients with mild or moderate COVID-19 at clinical trial sites worldwide, including in the U.S., Europe, and Japan. Patients are being randomized 1:1 to receive either bemnifosbuvir 550 mg twice-daily (BID) or placebo BID for five days. The trial consists of two study populations derived from the type of SOC received: 1) “supportive care population” (those patients who do not qualify for an approved antiviral treatment or where antivirals are not locally available), which will assess bemnifosbuvir given as monotherapy (primary analysis) and 2) “combination antiviral population”, which will assess combination therapy if the SOC includes treatment with other compatible antiviral drugs against COVID-19 (secondary analysis). The primary endpoint of the SUNRISE-3 study is all-cause hospitalization or death through Day 29 in the supportive care (monotherapy) arm and is powered to detect a clinically meaningful reduction in hospitalization or death versus placebo in this population. Granted Fast Track Designation by U.S. FDA: In April 2023, Atea announced that the U.S. Food and Drug Administration (FDA) granted Fast Track designation to investigate bemnifosbuvir for the treatment of COVID-19. The FDA’s Fast Track program is designed to facilitate the expedited development and review of new drugs or biologics that are intended to treat serious or life-threatening conditions and demonstrate the potential to address unmet medical needs. Among other things, as a result of the Fast Track designation, Atea may benefit from more frequent communications with the FDA to discuss the development plan of bemnifosbuvir for the treatment of COVID-19 and rolling review of any completed sections of any resulting New Drug Application. Presentation of Data Showing Bemnifosbuvir Reduced Risk of Hospitalizations for COVID-19 Patients at 2023 European Congress of Clinical Microbiology & Infectious Diseases (ECCMID 2023): In April 2023, Atea presented the full results from the MORNINGSKY trial, which evaluated bemnifosbuvir for the treatment of mild to moderate COVID-19. As previously announced, these results showed that non-hospitalized adult and adolescent patients who received bemnifosbuvir experienced a 71% relative reduction in risk of hospitalization, regardless of vaccination status (secondary endpoint). In an exploratory analysis, an 82% reduction in risk of hospitalization was seen in a subset of patients greater than 40 years of age. Based on these data, the global Phase 3 SUNRISE-3 registrational trial was initiated. COVID-19 Program for Second Generation Protease Inhibitors: As part of a multipronged approach against COVID-19, Atea is engaged in efforts directed to the discovery of second-generation protease inhibitors that have clinical profiles well suited for combination with bemnifosbuvir for the treatment of COVID-19. These efforts are supported by in vitro studies which have demonstrated that the combination of bemnifosbuvir and nirmatrelvir have an additive antiviral effect and the expectation that certain patient populations will require combination therapy. Activities to select a novel proprietary compound are underway. Hepatitis C Virus (HCV) Program Update Phase 2 HCV Combination Study: In June 2023, Atea initiated enrollment of a Phase 2 clinical trial of bemnifosbuvir in combination with ruzasvir in treatment-naïve, HCV-infected patients either without cirrhosis or with compensated cirrhosis. This study is designed to evaluate the safety and efficacy of eight weeks of treatment with the pan-genotypic combination consisting of once-daily bemnifosbuvir 550 mg and ruzasvir 180 mg. Approximately 280 HCV-infected, treatment-naïve patients across all genotypes, including a lead-in cohort of approximately 60 patients are expected to be enrolled in this Phase 2 clinical trial. The primary endpoints of the study are safety and sustained virologic response (SVR) at Week 12 post-treatment. Other virologic endpoints include virologic failure, SVR at Week 24 post-treatment and resistance. Initial data from the 60-patient lead-in cohort are anticipated in the fourth quarter of 2023. The combination of bemnifosbuvir and ruzasvir has the potential to significantly improve upon the current standard of care by offering a differentiated short duration, pan-genotypic protease-inhibitor free regimen for HCV-infected patients with or without cirrhosis. Second Quarter 2023 Financial Results Cash, Cash Equivalents and Marketable Securities: $608.1 million at June 30, 2023 compared to $646.7 million at December 31, 2022. Research and Development Expenses: Research and development expenses for the quarter ended June 30, 2023 in the amount of $22.1 million increased by $2.2 million from $19.9 million for the quarter ended June 30, 2022. The increase was primarily the result of higher expenses in connection with the SUNRISE-3 clinical trial for COVID-19 and Phase 2 clinical trial for HCV. General and Administrative Expenses: General and administrative expenses remained relatively consistent at $13.2 million for the quarter ended June 30, 2023 compared to $12.4 million for the quarter ended June 30, 2022. Interest Income and Other, Net: Interest income and other, net was $7.3 million for the quarter ended June 30, 2023 compared to $1.1 million for the quarter ended June 30, 2022. The increase was primarily the result of investing in higher yield marketable securities and higher interest rates. Income Tax Expense: Income tax expense remained relatively consistent at $0.3 million for the quarter ended June 30, 2023 compared to $0.1 million for the quarter ended June 30, 2022. Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) (in thousands, except share and per share amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating expenses Research and development $ 22,063 $ 19,858 $ 51,017 $ 49,491 General and administrative 13,172 12,437 25,787 24,979 Total operating expenses 35,235 32,295 76,804 74,470 Income (loss) from operations (35,235 ) (32,295 ) (76,804 ) (74,470 ) Interest income and other, net 7,303 1,080 13,602 1,178 Income (loss) before income taxes (27,932 ) (31,215 ) (63,202 ) (73,292 ) Income tax expense (251 ) (120 ) (448 ) (120 ) Net loss $ (28,183 ) $ (31,335 ) $ (63,650 ) $ (73,412 ) Other comprehensive income: Unrealized (loss) gain on available-for- sale investments (3 ) --- 374 --- Comprehensive loss $ (28,186 ) $ (31,335 ) $ (63,276 ) $ (73,412 ) Net loss per share – basic and diluted $ (0.34 ) $ (0.38 ) $ (0.76 ) $ (0.88 ) Weighted-average common shares used in computing net loss per share – basic and diluted 83,399,377 83,257,591 83,361,398 83,217,223 Selected Condensed Consolidated Balance Sheet Data (in thousands) (unaudited) June 30, 2023 December 31, 2022 Cash, cash equivalents and marketable securities $ 608,062 $ 646,709 Working capital(1) 604,667 642,444 Total assets 626,028 666,708 Total liabilities 23,679 26,136 Total stockholders' equity 602,349 640,572 (1) The Company defines working capital as current assets less current liabilities. See the Company’s condensed consolidated financial statements in its Quarterly Report on Form 10-Q for the three months ended June 30, 2023 for further detail regarding its current assets and liabilities. Conference Call and Webcast Atea will host a conference call and live audio webcast to discuss second quarter 2023 financial results and provide a business update today at 4:30 p.m. ET. To access the live conference call, please register here. A live audio webcast of the call and accompanying slide presentation will also be available in the Investors’ Events & Presentations section of the Company's website, To participate via telephone, please register in advance here. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. While not required, it is recommended that participants join the call ten minutes prior to the scheduled start. An archived webcast will be available on the Atea website approximately two hours after the event. About Bemnifosbuvir for COVID-19 Bemnifosbuvir, a nucleotide polymerase inhibitor, targets the SARS-CoV-2 RNA polymerase (nsp12), a highly conserved gene that is unlikely to change as the virus mutates and new variants continue to emerge. This gene is responsible for both replication and transcription of SARS-CoV-2. Bemnifosbuvir has a unique mechanism of action, with dual targets consisting of chain termination (RdRp) and nucleotityltransferase (NiRAN) inhibition, which has the potential to create a high barrier to resistance. In vitro data confirmed that bemnifosbuvir is active with similar efficacy against all variants of concern and variants of interest that have been tested, including Omicron subvariants BA.4, BA.5 and XBB. About Bemnifosbuvir and Ruzasvir for Hepatitis C Virus (HCV) Bemnifosbuvir has been shown to be approximately 10-fold more active than sofosbuvir (SOF) in vitro against a panel of laboratory strains and clinical isolates of HCV genotypes 1–5. In vitro studies demonstrated bemnifosbuvir remained fully active against SOF resistance-associated strains (S282T), with up to 58-fold more potency than SOF. The pharmacokinetic (PK) pro bemnifosbuvir supports once-daily dosing for the treatment of HCV and bemnifosbuvir has been well-tolerated at doses up to 550 mg for durations up to 8-12 weeks in healthy and HCV-infected subjects. Ruzasvir (RZR), an oral NS5A inhibitor, has demonstrated highly potent and pangenotypic antiviral activity in preclinical (picomolar range) and clinical studies. RZR has been administered to over 1,200 HCV-infected patients at daily doses of up to 180 mg for up to 24 weeks and has demonstrated a favorable safety profile. RZR’s PK pro once-daily dosing. About Atea Pharmaceuticals Atea is a clinical stage biopharmaceutical company focused on discovering, developing and commercializing oral antiviral therapies to address the unmet medical needs of patients with serious viral infections. Leveraging the Company’s deep understanding of antiviral drug development, nucleos(t)ide chemistry, biology, biochemistry and virology, Atea has built a proprietary nucleos(t)ide prodrug platform to develop novel product candidates to treat single stranded ribonucleic acid, or ssRNA, viruses, which are a prevalent cause of serious viral diseases. Atea plans to continue to build its pipeline of antiviral product candidates by augmenting its nucleos(t)ide platform with other classes of antivirals that may be used in combination with its nucleos(t)ide product candidates. Currently, Atea is focused on the development of orally-available antiviral agents for serious viral infections, including severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), the virus that causes COVID-19, and hepatitis C virus (HCV). For more information, please visit Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our expectations surrounding the potential of our product candidates, including bemnifosbuvir for the treatment of COVID-19, any new protease inhibitor we may advance for clinical development in combination with bemnifosbuvir for the treatment of COVID-19 and the combination of bemnifosbuvir and ruzasvir for the treatment of HCV. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 and our other filings with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. Contacts Jonae Barnes SVP, Investor Relations and Corporate Communications 617-818-2985 barnes.jonae@ateapharma.com Will O’Connor Stern Investor Relations 212-362-1200 will.oconnor@sternir.com