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Product Sales Excluding Veklury Increased Year-Over-Year by 8% for Full Year 2022 Biktarvy Sales Increased Year-Over-Year by 20% for Full Year 2022 Oncology Sales Increased Year-Over-Year by 71% for Full Year 2022 FOSTER CITY, Calif.--(BUSINESS WIRE)-- Gilead Sciences, Inc., (Nasdaq: GILD) announced today its results of operations for the fourth quarter and full year 2022. “2022 marked Gilead’s strongest full year growth in our base business since HCV sales peaked in 2015. This return to growth was driven by consistent and high quality commercial and clinical execution across our portfolio,” said Gilead’s Chairman and Chief Executive Officer Daniel O’Day. “In HIV, Biktarvy gained market share in the U.S. as it has every quarter since launch, while our long-acting HIV agent, lenacapavir, received its first regulatory approvals. The strong full year growth in oncology was driven by continued increase in demand for Trodelvy and our Cell Therapies. We look forward to building on this momentum in 2023 and further increasing our impact for people and communities worldwide.” Fourth Quarter 2022 Financial Results Total fourth quarter 2022 revenue of $7.4 billion increased 2% compared to the same period in 2021, primarily due to increased sales in Oncology, HIV and hepatitis C virus (“HCV”), partially offset by lower Veklury® (remdesivir) sales. Diluted Earnings Per Share (“EPS”) increased to $1.30 for the fourth quarter 2022 compared to $0.30 for the same period in 2021. Non-GAAP diluted EPS increased to $1.67 for the fourth quarter 2022 compared to $0.69 for the same period in 2021. The increase was primarily driven by two charges in the fourth quarter of 2021 which did not recur in 2022: the $1.25 billion charge for a legal settlement and the $625 million charge for the Arcus Biosciences, Inc. (“Arcus”) collaboration opt-in. The fourth quarter 2022 was, however, impacted by expenses related to the acquisition of GS-1811 from Jounce Therapeutics, Inc. (“Jounce”), the collaboration with MacroGenics, Inc. (“MacroGenics”), and the termination of the Trodelvy collaboration agreement with Everest Medicines (“Everest”), as well as higher R&D expenses. As of December 31, 2022, Gilead had $7.6 billion of cash, cash equivalents and marketable debt securities compared to $7.8 billion as of December 31, 2021. During the fourth quarter 2022, Gilead generated $2.6 billion in operating cash flow. During the fourth quarter 2022, Gilead paid cash dividends of $916 million and utilized $791 million to repurchase common stock. Product Sales Performance for the Fourth Quarter 2022 Total fourth quarter 2022 product sales increased 2% to $7.3 billion compared to the same period in 2021. Total product sales excluding Veklury increased 9% to $6.3 billion for the fourth quarter 2022 compared to the same period in 2021, primarily due to increased sales in HIV and Oncology as well as contributions from HCV products. HIV product sales increased 5% to $4.8 billion for the fourth quarter 2022 compared to the same period in 2021, reflecting higher demand and favorable pricing dynamics, partially offset by channel inventory dynamics in the United States. Biktarvy® (bictegravir 50mg/emtricitabine (“FTC”) 200mg/tenofovir alafenamide (“TAF”) 25mg) sales increased 15% to $2.9 billion for the fourth quarter 2022 compared to the same period in 2021, primarily reflecting higher demand and favorable pricing dynamics, partially offset by lower channel inventory. Descovy® (FTC 200mg/TAF 25mg) sales increased 13% to $537 million for the fourth quarter 2022 compared to the same period in 2021, primarily driven by favorable pricing dynamics as well as higher demand, partially offset by lower channel inventory. HCV product sales increased 12% to $439 million for the fourth quarter 2022 compared to the same period in 2021, primarily driven by increased patient starts and favorable pricing dynamics in the United States, partially offset by fewer starts in Europe. Hepatitis B virus (“HBV”) and hepatitis delta virus (“HDV”) product sales decreased 4% to $255 million for the fourth quarter 2022 compared to the same period in 2021. Vemlidy® (TAF 25 mg) sales decreased 2% in the fourth quarter 2022 compared to the same period in 2021, driven primarily by lower demand and pricing dynamics outside of the United States. Hepcludex® (bulevirtide) contributed $13 million in the fourth quarter 2022 as launch activities continued across Europe. Cell Therapy product sales increased 75% to $419 million for the fourth quarter 2022 compared to the same period in 2021. Yescarta® (axicabtagene ciloleucel) sales increased to $337 million in the fourth quarter 2022, primarily driven by increased demand in relapsed or refractory (“R/R”) large B-cell lymphoma (“LBCL”) in the United States and Europe. Tecartus® (brexucabtagene autoleucel) sales increased to $82 million in the fourth quarter 2022, driven by increased demand in adult R/R B-cell precursor acute lymphoblastic leukemia (“ALL”) and mantle cell lymphoma (“MCL”) in the United States and Europe. Trodelvy® (sacituzumab govitecan-hziy) sales increased 65% to $195 million for the fourth quarter 2022 compared to the same period in 2021, reflecting continued adoption in metastatic triple-negative breast cancer (“TNBC”) in the United States and Europe. Veklury sales decreased 26% to $1.0 billion for the fourth quarter 2022 compared to the same period in 2021, 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 2022 Product Gross Margin, Operating Expenses and Tax Product gross margin was 81.0% for the fourth quarter 2022 compared to 63.3% in the same period in 2021. Non-GAAP product gross margin was 86.8% for the fourth quarter 2022 compared to 70.5% in the same period in 2021. Higher product gross margin in 2022 is primarily driven by a charge related to a legal settlement in the fourth quarter 2021 that did not repeat. R&D expenses for the fourth quarter 2022 were $1.5 billion compared to $1.4 billion(1) in the same period in 2021. Non-GAAP R&D expenses for the fourth quarter 2022 were $1.5 billion compared to $1.3 billion(1) in the same period in 2021. Higher R&D expenses primarily reflect increased clinical activities, mainly in Oncology. Acquired in-process research and development (“IPR&D”) expenses for the fourth quarter 2022 were $158 million compared to $669 million(1) in the same period in 2021. Fourth quarter 2022 expenses primarily relate to the acquisition of GS-1811 from Jounce and the MacroGenics upfront payment. Fourth quarter 2021 expenses mostly relate to the charge for the Arcus collaboration opt-in. Selling, General and Administrative (“SG&A”) expenses for the fourth quarter 2022 were $2.0 billion compared to $1.7 billion in the same period in 2021. Non-GAAP SG&A expenses for the fourth quarter 2022 were $2.0 billion compared to $1.6 billion in the same period in 2021. SG&A expenses increased primarily due to the charge of $406 million associated with the termination of the Trodelvy collaboration agreement with Everest, which had provided Everest with broad commercialization and development rights to Trodelvy in certain Asia territories. Gilead terminated the existing agreement and reacquired the Trodelvy rights in these territories. The effective tax rate (“ETR”) and non-GAAP ETR for the fourth quarter 2022 were 19.6% and 16.8%, respectively, compared to 50.5% and 32.2%, respectively, for the same period in 2021. The lower ETR reflects discrete tax charges recorded in the fourth quarter of 2021 that did not repeat. Full Year 2022 Financial Results Total full year 2022 revenue of $27.3 billion was flat compared to 2021, driven by increased sales in Oncology and HIV, offset by lower sales of Veklury. Diluted EPS decreased to $3.64 for the full year 2022 compared to $4.93 in 2021. The decrease in diluted EPS was driven by an IPR&D impairment charge in the first quarter 2022 related to assets acquired by Gilead from Immunomedics in 2020, as well as the termination of the Trodelvy collaboration agreement with Everest and higher R&D expenses. This was partially offset by charges in the fourth quarter of 2021 that did not repeat related to a legal settlement. Non-GAAP diluted EPS increased 1% to $7.26 for the full year 2022 compared to $7.18 in 2021. The increase in non-GAAP diluted EPS was primarily due to a legal settlement charge in the fourth quarter of 2021 that did not repeat. This was partially offset by an increase in SG&A expenses mostly associated with the termination of the Trodelvy collaboration agreement with Everest and higher R&D expenses. Product Sales Performance for the Full Year 2022 Total full year 2022 product sales were $27.0 billion for the full year 2022 and remained flat compared to the same period in 2021, with growth in HIV, Cell Therapy and Trodelvy, offset by lower Veklury sales. Total product sales excluding Veklury increased 8% to $23.1 billion for the full year 2022 compared to 2021 primarily driven by increased sales in HIV, Cell Therapy and Trodelvy. HIV product sales increased 5% to $17.2 billion for the full year 2022 compared to 2021, primarily reflecting higher demand and favorable pricing dynamics, partially offset by channel inventory dynamics and unfavorable foreign exchange rates. Biktarvy sales increased 20% to $10.4 billion for the full year 2022, primarily reflecting higher demand in addition to favorable pricing dynamics, partially offset by inventory dynamics. Descovy sales increased 10% to $1.9 billion for the full year 2022, primarily driven by favorable pricing dynamics and higher demand, partially offset by inventory dynamics. HCV product sales decreased 4% to $1.8 billion for the full year 2022 compared to 2021, primarily due to unfavorable foreign exchange rates, as well as fewer patient starts and unfavorable pricing dynamics. HBV and HDV product sales increased 2% to $988 million for the full year 2022 compared to 2021, driven primarily by higher demand for Vemlidy, mainly in the United States. Cell Therapy product sales increased 68% to $1.5 billion for the full year 2022 compared to 2021, primarily due to higher demand for Yescarta in R/R LBCL, as well as Tecartus in R/R ALL and MCL. Trodelvy sales increased 79% to $680 million for the full year 2022 compared to 2021, reflecting continued adoption in metastatic TNBC in the United States and Europe. Veklury sales decreased 30% to $3.9 billion for the full year 2022 compared to 2021, primarily driven by lower rates of COVID-19 related hospitalizations. Full Year 2022 Product Gross Margin, Operating Expenses and Tax Product gross margin was 79.0% for the full year 2022 compared to 75.6% in 2021. Non-GAAP product gross margin was 86.6% for the full year 2022 compared to 83.2% in 2021. Higher product gross margin is primarily driven by a charge related to a legal settlement in the fourth quarter 2021 that did not repeat, slightly offset by other year-over-year changes. R&D expenses for the full year 2022 were $5.0 billion compared to $4.6 billion(1) in 2021. Non-GAAP R&D expenses for the full year 2022 were $5.0 billion compared to $4.5 billion(1) in 2021. Higher R&D expenses primarily reflect increased clinical activities, mainly in Oncology, as well as inflationary increases. Acquired IPR&D expenses for the full year 2022 were $944 million compared to $939 million(1) in the same period in 2021. SG&A expenses for the full year 2022 were $5.7 billion compared to $5.2 billion in 2021. Non-GAAP SG&A expenses for full year 2022 were $5.6 billion compared to $5.0 billion in 2021. SG&A expenses increased primarily due to the charge of $406 million associated with the termination of the Trodelvy collaboration with Everest, increased promotional and marketing investment, mostly in Trodelvy and Cell Therapy, as well as higher corporate activities and inflationary increases. GAAP SG&A expenses were slightly offset by a decrease in donations to the Gilead Foundation in 2022 as compared to prior year. The ETR and non-GAAP ETR for the full year 2022 were 21.5% and 19.3%, respectively, compared to 25.1% and 20.4%, respectively, in 2021. Lower ETR is primarily due to a beneficial change in jurisdictional mix of income and lower state taxes in 2022. ________________________________ (1) Beginning in the second quarter of 2022, expenses related to development milestones and other collaboration payments made prior to regulatory approval of a developed product were reclassified from R&D expenses to Acquired IPR&D expenses in the Condensed Consolidated Statements of Income. We believe this presentation assists users of the financial statements to better understand the total costs incurred to acquire IPR&D projects. Prior periods have been recast for both GAAP and Non-GAAP reporting to reflect this classification, resulting in a reduction of previously reported R&D expenses of $669 million and $762 million for the fourth quarter and full year 2021, respectively, and $8 million for the three months ended March 31, 2022. Guidance and Outlook Gilead is providing full-year 2023 guidance below: Total product sales between $26.0 billion and $26.5 billion. Total product sales, excluding Veklury, between $24.0 billion and $24.5 billion. Total Veklury sales of approximately $2.0 billion are expected to be highly variable, depending on the frequency and severity of surges, and our guidance will continue to be updated on a quarterly basis as necessary. Earnings per share between $5.30 and $5.70. Non-GAAP earnings per share between $6.60 and $7.00. A reconciliation between GAAP and non-GAAP financial information for the 2023 guidance is provided in the accompanying tables. Also see the Forward-Looking Statements described below. The financial guidance is subject to a number of risks and uncertainties, including uncertainty around the duration and magnitude of the COVID-19 pandemic. Key Updates Since Our Last Quarterly Release Virology Announced FDA approval of Sunlenca (lenacapavir), in combination with other antiretroviral(s), for the treatment of HIV-1 infection in heavily treatment-experienced adults with multi-drug resistant HIV-1 infection. Announced the European Commission (“EC”) authorized an extended indication and line extension for a low-dosage tablet form of Biktarvy (bictegravir 30mg/FTC 120mg/TAF 15mg) for the treatment of HIV in virologically suppressed children who are at least 2 years of age and weigh at least 14 kg. Announced FDA approval of Vemlidy for the treatment of chronic HBV infection in pediatric patients 12 years and older with compensated liver disease. Oncology Announced that the European Medicines Agency has validated a Type II variation of the Marketing Authorization Application for Trodelvy for the treatment of adult patients with pre-treated HR+/HER2- metastatic breast cancer (“mBC”). Presented post-hoc analysis from the Phase 3 TROPiCS-02 study of Trodelvy in HR+/HER2- mBC at the 2022 San Antonio Breast Cancer Symposium. In the analysis Trodelvy demonstrated consistent efficacy across Trop-2 expression levels in patients with pre-treated HR+/HER2- mBC with improvement across progression-free survival (“PFS”), overall survival and objective response rate as compared to standard chemotherapy. The safety pro Trodelvy was consistent with prior studies, with no new safety signals identified in this population. Announced the transfer of the Marketing Authorization for Yescarta in Japan from Daiichi Sankyo Co., Ltd. (“Daiichi Sankyo”) to Gilead K.K. in 2023. Received approval from the Ministry of Health, Labour and Welfare in Japan for Yescarta for the initial treatment of R/R LBCL. Entered into a strategic collaboration between Kite, a Gilead company, and Arcellx, Inc. (“Arcellx”) to co-develop and co-commercialize CART-ddBMCA, a late-stage clinical asset in development for the treatment of multiple myeloma. Entered into an agreement to acquire Tmunity Therapeutics Inc. (“Tmunity”), a clinical stage private biotech company, which will provide Kite with preclinical and clinical programs, including an “armored” CAR T technology platform that has the potential to be applied to a variety of CAR Ts to enhance anti-tumor activity, as well as rapid manufacturing processes. The transaction is expected to close in the first quarter of 2023. Presented long-term data and real-world analysis of Yescarta and Tecartus at the American Society of Hematology 2022 meeting. Results showed that in a real-world analysis, shorter vein-to-vein times were associated with improved outcomes for patients treated with Yescarta for R/R LBCL. Additionally, in a three-year follow-up analysis of ZUMA-5 in R/R indolent non-Hodgkin lymphoma showed continued response in 52% of patients and prolonged duration of PFS. Three follow-up analyses were presented on Tecartus, including a two-year follow-up of ZUMA-3 compared to SCHOLAR-3 in R/R B-cell acute lymphoblastic leukemia and updated three-year results from ZUMA-2 study in R/R mantle cell lymphoma. Presented positive data, alongside Arcus, from the fourth interim analysis of the Phase 2 ARC-7 study at the American Society of Clinical Oncology Monthly Plenary Session. The study is evaluating the combinations of domvanalimab plus zimberelimab (doublet) and domvanalimab plus zimberelimab and etrumadenant (triplet), versus zimberelimab monotherapy in patients with first-line, metastatic PD-L1-high NSCLC. In the study, both the doublet and triplet combinations demonstrated clinically meaningful improvements in median PFS compared to zimberelimab monotherapy, with a 45% reduction in risk of disease progression or death for the doublet and 35% for the triplet. Acquired the remaining rights to GS-1811, an anti-CCR8 antibody, developed by Jounce for the treatment of solid tumors. Inflammation Announced a collaboration and licensing agreement with EVOQ Therapeutics, Inc. (“EVOQ”) to advance EVOQ’s proprietary NanoDisc technology for the treatment of rheumatoid arthritis and lupus. Corporate Recognized as one of the most sustainable pharmaceutical companies according to the Dow Jones Sustainability World Index, reflecting Gilead’s ongoing commitment to corporate responsibility. Announced the U.S. Supreme Court denied Juno Therapeutics, Inc.’s appeal in the Juno v. Kite case, effectively ending this patent dispute. Certain amounts and percentages in this press release may not sum or recalculate due to rounding. Conference Call At 1:30 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. Beginning in the first quarter of 2022, consistent with recent industry communications from the U.S. Securities and Exchange Commission (“SEC”), Gilead no longer excludes the initial costs of acquired IPR&D projects from its non-GAAP financial measures. Prior period non-GAAP financial measures are revised to conform to the new presentation. 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 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: the impact of the COVID-19 pandemic on Gilead’s business, financial condition and results of operations; the development, manufacturing and distribution of Veklury as a treatment for COVID-19, including the uncertainty of the amount and timing of future Veklury sales and Gilead’s ability to effectively manage the global supply and distribution of Veklury; Gilead’s ability to achieve its anticipated full year 2023 financial results, including as a result of potential adverse revenue impacts from COVID-19 and potential revenues from Veklury; 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 those involving Arcellx, Daiichi Sankyo, EVOQ, Jounce and Tmunity; Gilead’s ability to identify suitable transactions as part of its business strategy and the risk that Gilead may not be able to complete any such transaction in a timely manner or at all, including the possibility that a governmental entity or regulatory body may delay or refuse to grant approval for the consummation of the transaction; 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 Trodelvy, Tecartus, Yescarta, domvanalimab, etrumadenant and zimberelimab, 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, including EC approval of Trodelvy for the treatment of adult patients with pre-treated HR+/HER2 mBC, 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, including the risk that Kite may be unable to increase its manufacturing capacity, timely manufacture and deliver its products or produce an amount of supply sufficient to satisfy demand for such 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 Biktarvy, Sunlenca, Vemlidy and 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, 2022 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®, RANEXA®, SOVALDI®, STRIBILD®, SUNLENCA® , TECARTUS®, TRODELVY®, TRUVADA®, TRUVADA FOR PREP®, TYBOST®, VEKLURY®, VEMLIDY®, VIREAD®, VOSEVI®, YESCARTA® and ZYDELIG®. This report may also refer to trademarks, service marks and trade names of other companies. 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) 2022 2021 2022 2021 Revenues: Product sales $ 7,333 $ 7,160 $ 26,982 $ 27,008 Royalty, contract and other revenues 56 84 299 297 Total revenues 7,389 7,244 27,281 27,305 Costs and expenses: Cost of goods sold 1,396 2,627 5,657 6,601 Research and development expenses 1,548 1,358 4,977 4,601 Acquired in-process research and development expenses 158 669 944 939 In-process research and development impairment — — 2,700 — Selling, general and administrative expenses 2,020 1,650 5,673 5,246 Total costs and expenses 5,122 6,304 19,951 17,387 Operating income 2,267 940 7,330 9,918 Interest expense (227 ) (238 ) (935 ) (1,001 ) Other income (expense), net (9 ) 57 (581 ) (639 ) Income before income taxes 2,031 759 5,814 8,278 Income tax expense (398 ) (383 ) (1,248 ) (2,077 ) Net income 1,633 376 4,566 6,201 Net loss attributable to noncontrolling interest 7 6 26 24 Net income attributable to Gilead $ 1,640 $ 382 $ 4,592 $ 6,225 Basic earnings per share attributable to Gilead $ 1.31 $ 0.30 $ 3.66 $ 4.96 Shares used in per share calculation - basic 1,252 1,256 1,255 1,256 Diluted earnings per share attributable to Gilead $ 1.30 $ 0.30 $ 3.64 $ 4.93 Shares used in per share calculation - diluted 1,264 1,262 1,262 1,262 Cash dividends declared per share $ 0.73 $ 0.71 $ 2.92 $ 2.84 Research and development expenses as a % of revenues 20.9 % 18.7 % 18.2 % 16.9 % Selling, general and administrative expenses as a % of revenues 27.3 % 22.8 % 20.8 % 19.2 % GILEAD SCIENCES, INC. TOTAL REVENUE SUMMARY (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except percentages) 2022 2021 Change 2022 2021 Change Product sales: HIV $ 4,772 $ 4,538 5 % $ 17,194 $ 16,315 5 % HCV 439 393 12 % 1,810 1,881 (4 )% HBV/HDV 255 265 (4 )% 988 969 2 % Cell Therapy 419 239 75 % 1,459 871 68 % Trodelvy 195 118 65 % 680 380 79 % Other 252 250 1 % 946 1,027 (8 )% Total product sales excluding Veklury 6,333 5,803 9 % 23,077 21,443 8 % Veklury 1,000 1,357 (26 )% 3,905 5,565 (30 )% Total product sales 7,333 7,160 2 % 26,982 27,008 — % Royalty, contract and other revenues 56 84 (33 )% 299 297 1 % Total revenues $ 7,389 $ 7,244 2 % $ 27,281 $ 27,305 — % GILEAD SCIENCES, INC. NON-GAAP FINANCIAL INFORMATION(1) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions, except percentages) 2022 2021 Change 2022 2021 Change Non-GAAP: Cost of goods sold $ 968 $ 2,111 (54 )% $ 3,602 $ 4,538 (21 )% Research and development expenses $ 1,544 $ 1,315 17 % $ 4,968 $ 4,464 11 % Acquired IPR&D expenses $ 158 $ 669 (76 )% $ 944 $ 939 1 % Selling, general and administrative expenses $ 2,020 $ 1,642 23 % $ 5,587 $ 4,974 12 % Other income (expense), net $ 52 $ — NM $ 77 $ (29 ) NM Diluted EPS $ 1.67 $ 0.69 141 % $ 7.26 $ 7.18 1 % Product gross margin 86.8 % 70.5 % 1628 bps 86.6 % 83.2 % 345 bps Research and development expenses as a % of revenues 20.9 % 18.2 % 274 bps 18.2 % 16.3 % 186 bps Selling, general and administrative expenses as a % of revenues 27.3 % 22.7 % 468 bps 20.5 % 18.2 % 226 bps Operating margin 36.5 % 20.8 % 1573 bps 44.6 % 45.4 % -75 bps Effective tax rate 16.8 % 32.2 % -1540 bps 19.3 % 20.4 % -110 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 on pages 12 - 13. Beginning in the first quarter of 2022, consistent with recent industry communications from the U.S. Securities and Exchange Commission, the Company no longer excludes the initial costs of acquired IPR&D projects from its non-GAAP financial measures. Prior period non-GAAP financial measures are revised to conform to the new presentation. 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) 2022 2021 2022 2021 Cost of goods sold reconciliation: GAAP cost of goods sold $ 1,396 $ 2,627 $ 5,657 $ 6,601 Acquisition-related – amortization of acquired intangibles and inventory step-up charges (428 ) (516 ) (2,013 ) (2,063 ) Other(1) — — (42 ) — Non-GAAP cost of goods sold $ 968 $ 2,111 $ 3,602 $ 4,538 Product gross margin reconciliation: GAAP product gross margin 81.0 % 63.3 % 79.0 % 75.6 % Acquisition-related – amortization of acquired intangibles and inventory step-up charges 5.8 % 7.2 % 7.5 % 7.6 % Other(1) — % — % 0.2 % — % Non-GAAP product gross margin 86.8 % 70.5 % 86.6 % 83.2 % Research and development expenses reconciliation: GAAP research and development expenses $ 1,548 $ 1,358 $ 4,977 $ 4,601 Acquisition-related – amortization of inventory step-up charges — . (42 ) — (109 ) Acquisition-related – other costs(2) (1 ) . — 13 (14 ) Other(1) (4 ) . (1 ) (22 ) (14 ) Non-GAAP research and development expenses $ 1,544 $ 1,315 $ 4,968 $ 4,464 IPR&D impairment reconciliation: GAAP IPR&D impairment $ — $ — $ 2,700 $ — IPR&D impairment — . — (2,700 ) — Non-GAAP IPR&D impairment $ — $ — $ — $ — Selling, general and administrative expenses reconciliation: GAAP selling, general and administrative expenses $ 2,020 $ 1,650 $ 5,673 $ 5,246 Acquisition-related – other costs(2) (1 ) . (3 ) (3 ) (45 ) Other(1) 1 . (5 ) (83 ) (227 ) Non-GAAP selling, general and administrative expenses $ 2,020 $ 1,642 $ 5,587 $ 4,974 Operating income reconciliation: GAAP operating income $ 2,267 $ 940 $ 7,330 $ 9,918 Acquisition-related – amortization of acquired intangibles and inventory step-up charges 428 . 558 2,013 2,172 Acquisition-related – other costs(2) 2 . 3 (10 ) 59 IPR&D impairment — . — 2,700 — Other(1) 2 . 6 147 241 Non-GAAP operating income $ 2,699 $ 1,507 $ 12,180 $ 12,390 Operating margin reconciliation: GAAP operating margin 30.7 % 13.0 % 26.9 % 36.3 % Acquisition-related – amortization of acquired intangibles and inventory step-up charges 5.8 % 7.7 % 7.4 % 8.0 % Acquisition-related – other costs(2) — % 0.1 % — % 0.2 % IPR&D impairment — % — % 9.9 % — % Other(1) — % — % 0.5 % 0.9 % Non-GAAP operating margin 36.5 % 20.8 % 44.6 % 45.4 % Other income (expense), net reconciliation: GAAP other income (expense), net $ (9 ) $ 57 $ (581 ) $ (639 ) Loss (gain) from equity securities, net 61 (57 ) 657 610 Non-GAAP other income (expense), net $ 52 $ — $ 77 $ (29 ) 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) 2022 2021 2022 2021 Effective tax rate reconciliation: GAAP effective tax rate 19.6 % 50.5 % 21.5 % 25.1 % Income tax effect of above non-GAAP adjustments and discrete and related tax adjustments(3) (2.8 )% (18.3 )% (2.1 )% (4.7 )% Non-GAAP effective tax rate 16.8 % 32.2 % 19.3 % 20.4 % Net income attributable to Gilead reconciliation: GAAP net income attributable to Gilead $ 1,640 $ 382 $ 4,592 $ 6,225 Acquisition-related – amortization of acquired intangibles and inventory step-up charges 346 449 1,610 1,750 Acquisition-related – other costs(2) 1 — (12 ) 46 IPR&D impairment — . — 2,057 — Other(1) 2 . 3 106 146 Loss (gain) from equity securities, net 60 (56 ) 630 631 Discrete and related tax charges(3) 57 88 175 267 Non-GAAP net income attributable to Gilead $ 2,106 $ 866 $ 9,158 $ 9,065 Diluted EPS reconciliation: GAAP diluted EPS $ 1.30 $ 0.30 $ 3.64 $ 4.93 Acquisition-related – amortization of acquired intangibles and inventory step-up charges 0.27 0.36 1.28 1.39 Acquisition-related – other costs(2) — — (0.01 ) 0.04 IPR&D impairment — — 1.63 — Other(1) — — 0.08 0.11 Loss (gain) from equity securities, net 0.05 (0.04 ) 0.50 0.50 Discrete and related tax charges(3) 0.05 0.07 0.14 0.21 Non-GAAP diluted EPS $ 1.67 $ 0.69 $ 7.26 $ 7.18 Non-GAAP adjustment summary: Cost of goods sold adjustments $ 428 $ 516 $ 2,055 $ 2,063 Research and development expenses adjustments 4 43 9 137 IPR&D impairment adjustments — — 2,700 — Selling, general and administrative expenses adjustments — 8 86 272 Total non-GAAP adjustments before other income (expense), net, and income taxes 432 567 4,850 2,472 Other income (expense), net, adjustments 61 (57 ) 657 610 Total non-GAAP adjustments before income taxes 493 510 5,507 3,082 Income tax effect of non-GAAP adjustments above (84 ) (114 ) (1,116 ) (509 ) Discrete and related tax charges(3) 57 88 175 267 Total non-GAAP adjustments after tax $ 466 $ 484 $ 4,566 $ 2,840 ______________________________ (1) Adjustments to Cost of goods sold and Research and development expenses primarily include various restructuring expenses during the first quarter of 2022 and the second quarter of 2021. Adjustments to Selling, general and administrative expenses primarily include donations to the Gilead Foundation, a California nonprofit organization, during the second quarters of 2022 and 2021. (2) Adjustments include employee-related expenses, contingent consideration fair value adjustments and other expenses associated with Gilead’s acquisitions of MiroBio, Ltd., Immunomedics, Inc. and MYR GmbH. (3) 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 2023 FULL YEAR GUIDANCE(1) (unaudited) (in millions, except percentages and per share amounts) Provided February 2, 2023 Projected product gross margin GAAP to non-GAAP reconciliation: GAAP projected product gross margin 79.0% Acquisition-related expenses ~ 7% Non-GAAP projected product gross margin 86.0% Projected operating income GAAP to non-GAAP reconciliation: GAAP projected operating income $9,200 - $9,800 Acquisition-related expenses ~ 1,800 Non-GAAP projected operating income $11,000 - $11,600 Projected effective tax rate GAAP to non-GAAP reconciliation: GAAP projected effective tax rate ~ 22% Discrete and related tax adjustments, and income tax effect of adjustments above (~ 2%) Non-GAAP projected effective tax rate ~ 20% Projected diluted EPS GAAP to non-GAAP reconciliation: GAAP projected diluted EPS $5.30 - $5.70 Acquisition-related expenses and tax adjustments ~ 1.30 Non-GAAP projected diluted EPS $6.60 - $7.00 ________________________________ (1) The non-GAAP 2023 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. 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. GILEAD SCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) December 31, (in millions) 2022 2021 Assets Cash, cash equivalents and marketable securities $ 7,630 $ 7,829 Accounts receivable, net 4,777 4,493 Inventories 2,820 2,734 Property, plant and equipment, net 5,475 5,121 Intangible assets, net 28,894 33,455 Goodwill 8,314 8,332 Other assets 5,261 5,988 Total assets $ 63,171 $ 67,952 Liabilities and Stockholders’ Equity Current liabilities $ 11,237 $ 11,610 Long-term liabilities 30,725 35,278 Stockholders’ equity(1) 21,209 21,064 Total liabilities and stockholders’ equity $ 63,171 $ 67,952 ________________________________ (1) As of December 31, 2022 and 2021, there were 1,247 and 1,254 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) 2022 2021 2022 2021 Net cash provided by operating activities $ 2,566 $ 3,205 $ 9,072 $ 11,384 Net cash used in investing activities (374 ) (278 ) (2,466 ) (3,131 ) Net cash used in financing activities (1,554 ) (1,942 ) (6,469 ) (8,877 ) Effect of exchange rate changes on cash and cash equivalents 75 (9 ) (63 ) (35 ) Net change in cash and cash equivalents 713 976 74 (659 ) Cash and cash equivalents at beginning of period 4,699 4,362 5,338 5,997 Cash and cash equivalents at end of period $ 5,412 $ 5,338 $ 5,412 $ 5,338 Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2022 2021 2022 2021 Net cash provided by operating activities $ 2,566 $ 3,205 $ 9,072 $ 11,384 Capital expenditures (181 ) (156 ) (728 ) (579 ) Free cash flow $ 2,386 $ 3,049 $ 8,344 $ 10,805 GILEAD SCIENCES, INC. PRODUCT SALES SUMMARY (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2022 2021 2022 2021 HIV Biktarvy – U.S. $ 2,423 $ 2,123 $ 8,510 $ 7,049 Biktarvy – Europe 295 262 1,103 969 Biktarvy – Other International 200 145 777 606 2,918 2,530 10,390 8,624 Complera / Eviplera – U.S. 17 29 74 102 Complera / Eviplera – Europe 37 38 113 142 Complera / Eviplera – Other International 3 2 13 14 58 69 200 258 Descovy – U.S. 479 403 1,631 1,397 Descovy – Europe 26 36 118 164 Descovy – Other International 31 34 123 139 537 473 1,872 1,700 Genvoya – U.S. 543 634 1,983 2,267 Genvoya – Europe 64 85 284 391 Genvoya – Other International 33 37 136 221 640 756 2,404 2,879 Odefsey – U.S. 295 303 1,058 1,076 Odefsey – Europe 85 104 364 440 Odefsey – Other International 11 13 47 52 392 420 1,469 1,568 Stribild – U.S. 20 38 88 132 Stribild – Europe 7 10 29 43 Stribild – Other International 3 2 10 14 29 50 127 189 Truvada – U.S. 37 46 113 314 Truvada – Europe 3 4 15 22 Truvada – Other International 5 11 18 35 45 61 147 371 Revenue share – Symtuza(1) – U.S. 97 94 348 355 Revenue share – Symtuza(1) – Europe 42 40 168 165 Revenue share – Symtuza(1) – Other International 3 3 14 11 142 137 530 531 Other HIV(2) – U.S. 4 26 15 136 Other HIV(2) – Europe 5 11 24 30 Other HIV(2) – Other International 3 5 17 29 12 42 57 195 Total HIV – U.S. 3,914 3,696 13,820 12,828 Total HIV – Europe 566 590 2,219 2,366 Total HIV – Other International 293 252 1,155 1,121 4,772 4,538 17,194 16,315 GILEAD SCIENCES, INC. PRODUCT SALES SUMMARY - (Continued) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2022 2021 2022 2021 Veklury Veklury – U.S. 395 877 1,575 3,640 Veklury – Europe 142 334 702 1,095 Veklury – Other International 462 146 1,628 830 1,000 1,357 3,905 5,565 HCV Ledipasvir / Sofosbuvir(3) – U.S. 19 21 46 84 Ledipasvir / Sofosbuvir(3) – Europe 4 7 17 31 Ledipasvir / Sofosbuvir(3) – Other International 8 21 51 97 31 49 115 212 Sofosbuvir / Velpatasvir(4) – U.S. 214 166 844 815 Sofosbuvir / Velpatasvir(4) – Europe 67 82 355 316 Sofosbuvir / Velpatasvir(4) – Other International 87 59 331 331 369 307 1,530 1,462 Other HCV(5) – U.S. 27 22 115 119 Other HCV(5) – Europe 9 10 40 74 Other HCV(5) – Other International 3 5 10 14 39 37 166 207 Total HCV – U.S. 260 209 1,005 1,018 Total HCV – Europe 80 99 413 421 Total HCV – Other International 98 85 392 442 439 393 1,810 1,881 HBV/HDV Vemlidy – U.S. 123 118 429 384 Vemlidy – Europe 8 9 35 34 Vemlidy – Other International 89 98 379 396 220 225 842 814 Viread – U.S. 2 3 6 11 Viread – Europe 6 6 23 28 Viread – Other International 14 17 62 72 22 26 91 111 Other HBV/HDV(6) – U.S. (1 ) 1 — 2 Other HBV/HDV(6) – Europe 14 13 55 42 13 14 55 44 Total HBV/HDV – U.S. 124 122 435 397 Total HBV/HDV – Europe 28 28 112 104 Total HBV/HDV – Other International 103 115 441 468 255 265 988 969 Cell therapy Tecartus – U.S. 61 42 221 136 Tecartus – Europe 19 15 75 40 Tecartus – Other International 1 — 3 — 82 57 299 176 Yescarta – U.S. 219 106 747 406 Yescarta – Europe 103 65 355 253 Yescarta – Other International 15 11 57 36 337 182 1,160 695 Total cell therapy – U.S. 281 148 968 542 Total cell therapy – Europe 122 80 430 293 Total cell therapy – Other International 17 11 60 36 419 239 1,459 871 GILEAD SCIENCES, INC. PRODUCT SALES SUMMARY - (Continued) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, (in millions) 2022 2021 2022 2021 Trodelvy Trodelvy – U.S. 146 109 525 370 Trodelvy – Europe 44 9 143 10 Trodelvy – Other International 4 — 12 — 195 118 680 380 Other AmBisome – U.S. 9 7 57 39 AmBisome – Europe 66 72 258 274 AmBisome – Other International 42 41 182 227 117 120 497 540 Letairis – U.S. 60 49 196 206 Other(7) – U.S. 44 27 135 136 Other(7) – Europe 13 47 65 115 Other(7) – Other International 18 7 53 30 75 81 253 281 Total other – U.S. 113 83 388 381 Total other – Europe 79 119 323 389 Total other – Other International 61 48 235 257 252 250 946 1,027 Total product sales – U.S. 5,234 5,244 18,716 19,176 Total product sales – Europe 1,061 1,259 4,342 4,678 Total product sales – Other International 1,037 657 3,924 3,154 $ 7,333 $ 7,160 $ 26,982 $ 27,008 _______________________________ (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.

Gilead Sciences will have sole responsibility for all further research, development and commercialization of GS-1811 globally. While the tough funding environment has forced many biotechs to lay off staff or pare back their pipelines, Jounce has at least found a way to make some easy money in the process. The biotech has sold its remaining stake in an anti-CCR8 antibody dubbed GS-1811 to Gilead for $67 million. “This transaction allows us to extend our runway and remain focused on delivering meaningful and long-lasting benefits to cancer patients,” Jounce CEO Richard Murray, Ph.D., said in a Dec. 27 release. “It was important for Jounce at this time to bolster our cash resources, given challenges in capital markets for biotech companies.” The deal may offer short-term rewards for Jounce, but it isn’t painless for the biotech, which will be surrendering up to $645 million in potential milestones as well as hefty royalty payments should GS-1811 prove a success. The therapy, which is designed to selectively deplete immunosuppressive tumor-infiltrating T regulatory cells, is currently in phase 1 development for patients with solid tumors. Gilead first signed a deal to collaborate on GS-1811, then known as JTX-1811, back in September 2020. JTX-1811 is designed to bind to CCR8, a chemokine receptor enriched on TITR cells, in order to kill the cells through an enhanced mechanism.  Having previously handed over $85 million upfront to go in with Jounce on developing GS-1811 back in September 2020, the latest deal will give Gilead sole responsibility for all further research, development and commercialization globally. Despite letting go of GS-1811, Jounce still has three candidates in the clinic. Vopratelimab, a T cell costimulator agonist, is in a phase 2 trial as a second line treatment for non-small cell lung cancer patients, while patients with solid tumors are being enrolled in a phase 2 trial of the PD-1 inhibitor pimivalimab. Rounding out the pack is JTX-8064, a humanized IgG4 monoclonal antibody that is being investigated in phase 2 trials as a monotherapy and in combination with pimivalimab for solid tumors. It's not hard to see why Jounce is hungry for funds. The biotech had $130 million in cash and investments as of the end of September, a major drop on the $220 million it entered 2022 with. The biotech blamed the fall in reserves on operating expenses throughout the year. It can’t have helped matters that vopratelimab’s future seemed uncertain last year, with the company considering its options after a combination of the therapy and pimivalimab didn’t significantly reduce tumor size in a subset of non-small cell lung cancer patients compared to pimivalimab alone.