Press Releases
October 28, 1998
Gilead Announces Third Quarter 1998 Financial Results
Foster City, CA -- October 28, 1998
Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results of operations for the third quarter ended September 30, 1998. For this quarter, the Company reported revenues from net product sales of $1.4 million, contract revenues of $1.2 million and royalty revenues of $0.4 million, for total revenues of $3.0 million and net interest income of $4.1 million. This compares to revenues from net product sales of $2.3 million, contract revenues of $2.3 million and royalty revenues of $0.3 million, for total revenues of $4.9 million and net interest income of $4.7 million for the same quarter in 1997.
The net loss for the three months ended September 30, 1998 was $17.6 million, or $0.58 per share, compared to a net loss of $10.3 million, or $0.35 per share, for the same quarter in 1997.
Net revenues from product sales were derived from sales of VISTIDE® (cidofovir injection), which Gilead markets independently in the United States for the treatment of cytomegalovirus (CMV) retinitis in patients with AIDS. The decline in VISTIDE-related revenues reflects a continuing decline in the incidence of CMV retinitis as a result of more effective human immunodeficiency virus (HIV) therapies. The other revenues resulted from collaborations with corporate partners, including contract revenues for research and development projects and royalties on product sales of VISTIDE outside of the United States by Gilead's partner Pharmacia & Upjohn.
Research and development expenses for the third quarter of 1998 were $16.7 million, compared to $13.6 million for the same period in 1997. This increase was due primarily to expenses associated with the advancement of four therapeutic candidates into later stages of clinical development.
Gilead also reported its results of operations for the nine months ended September 30, 1998. The Company reported net revenues from product sales of $4.8 million and aggregate contract and royalty revenues of $18.8 million, for total revenues of $23.6 million and net interest income of $14.1 million for this period. This compares to revenues from product sales of $9.3 million and aggregate contract and royalty revenues of $20.8 million, for total revenues of $30.1 million and net interest income of $12.9 million for the nine months ended September 30, 1997. The net loss for the nine months ended September 30, 1998 was $39.8 million, or $1.31 per share, compared to a net loss of $15.6 million, or $0.53 per share for the nine months ended September 30, 1997.
As of September 30, 1998, the Company had cash, cash equivalents and short-term investments of $295.9 million, compared to $322.3 million on December 31, 1997.
Gilead Sciences is an independent biopharmaceutical company that seeks to provide accelerated treatment solutions for patients and the people who care for them. The Company discovers, develops and commercializes proprietary therapeutics for important viral diseases, including a currently marketed product, VISTIDE, for the treatment of CMV retinitis, a sight-threatening viral infection in patients with AIDS. In addition, the Company is developing products to treat diseases caused by HIV, hepatitis B virus and influenza virus. Gilead common stock is traded on The Nasdaq Stock Market under the symbol GILD.
To receive more information call Corporate Communications at 1-800-GILEAD-5 (1-800-445-3235).
| GILEAD SCIENCES, INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (unaudited) | ||||||||
| (in thousands, except per share amounts) | ||||||||
| 3 months ended, September 30 | 9 months ended, September 30 | |||||||
| 1998 | 1997 | 1998 | 1997 | |||||
| Revenues: | ||||||||
Product sales, net |
$ 1,444 | $ 2,326 | $ 4,837 | $ 9,316 | ||||
Contract revenues |
1,211 | 2,347 | 17,300 | 20,438 | ||||
Royalty revenues |
383 | 264 | 1,497 | 374 | ||||
| Total revenues | 3,038 | 4,937 | 23,634 | 30,128 | ||||
| Costs and expenses: | ||||||||
Cost of sales |
120 | 180 | 464 | 995 | ||||
Research and development |
16,720 | 13,604 | 53,978 | 39,126 | ||||
Selling, general and administrative |
7,875 | 6,233 | 23,060 | 18,525 | ||||
| Total costs and expenses | 24,715 | 20,017 | 77,502 | 58,646 | ||||
| Income (loss) from operations | (21,677) | (15,080) | (53,868) | (28,518) | ||||
| Interest income, net | 4,118 | 4,749 | 14,083 | 12,949 | ||||
| Net income (loss) | $(17,559) | $ (10,331) | $(39,785) | $ (15,569) | ||||
| Basic and diluted income (loss) per share | $ (0.58) | $ (0.35) | $ (1.31) | $ (0.53) | ||||
| Common shares used in the calculation of basic and diluted loss per share | 30,482 | 29,406 | 30,293 | 29,147 | ||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
| (in thousands, unaudited) | ||||||||||||||||
| September 30, 1998 | December 31, 1997 | |||||||||||||||
| Assets | ||||||||||||||||
Cash, cash equivalents and short-term investments |
$ 295,861 | $ 322,298 | ||||||||||||||
Other current assets |
9,710 | 17,960 | ||||||||||||||
Total current assets |
305,571 | 340,258 | ||||||||||||||
Property and equipment, net |
9,731 | 10,313 | ||||||||||||||
Other assets |
1,402 | 1,498 | ||||||||||||||
| $316,704 | $352,069 | |||||||||||||||
| Liabilities and stockholders' equity | ||||||||||||||||
Current liabilities |
$ 31,298 | $ 33,391 | ||||||||||||||
Long-term obligations |
747 | 1,331 | ||||||||||||||
Stockholders' equity |
284,659 | 317,347 | ||||||||||||||
| $316,704 | $352,069 | |||||||||||||||
Note: Derived from audited financial statements at that date.