Gilead Sciences Announces Updated 2020 Guidance

About this update from Gilead Sciences, Inc.

[{"type":"text","content":" FOSTER CITY, Calif.--(BUSINESS WIRE)--\nGilead Sciences, Inc. (Nasdaq: GILD) today announced the company has revised certain elements of its full year 2020 guidance.\n\nUpdated Full Year 2020 Guidance\n\n\n\n(In millions, except percentages and per share amounts)\n\n\n\nPreviously Updated\nOctober 28, 2020\n\n\n\nUpdated\nJanuary 11, 2021\n\n\n\n\n\nProduct Sales\n\n\n\n$23,000 - $23,500\n\n\n\n$24,300 - $24,350\n\n\n\n\n\nProduct Sales excluding Veklury\n\n\n\n \n\n\n\n$21,500 - $21,525\n\n\n\n\n\nVeklury\n\n\n\n \n\n\n\n$2,800 - $2,825\n\n\n\n\n\nNon-GAAP\n\n\n\n \n\n\n\n \n\n\n\n\n\nProduct Gross Margin\n\n\n\n86% - 87%\n\n\n\n~ 86.5%\n\n\n\n\n\nR&D Expenses\n\n\n\nMid-teens percentage growth\n\n\n\n \n\n\n~ 20% growth\n\n\n\n\n\nSG&A Expenses\n\n\n\nLow double-digit percentage growth\n\n\n\n \n\n\n~ 10% growth\n\n\n\n\n\nOperating Income\n\n\n\n$10,700 - $11,200\n\n\n\n$11,650 - $11,750\n\n\n\n\n\nEffective Tax Rate\n\n\n\n~ 20%\n\n\n\n~ 19.0% - 19.5%\n\n\n\n\n\nDiluted EPS\n\n\n\n$6.25 - $6.60\n\n\n\n$6.98 - $7.08\n\n\n\n\n\nGAAP Diluted Earnings (Loss) Per Share\n\n\n\n$(0.25) - $0.10\n\n\n\n$(0.08) - $0.02\n\n\n\n\nThe following provides additional details on the company’s updated guidance:\n\n\nGilead delivered solid performance, despite the global impacts of COVID-19.\n\n\nTotal product sales guidance range is now $24.30 billion to $24.35 billion, reflecting increased Veklury® (remdesivir) sales as hospitalization and treatment rates were higher than expected given the most recent COVID-19 surge.\n\n\nAs a reminder, full year 2020 total product sales excluding Veklury reflects the underlying strong Biktarvy® (bictegravir 50 mg/emtricitabine 200 mg/tenofovir alafenamide 25 mg) uptake, partially offset by the Truvada® (emtricitabine 200 mg/tenofovir disoproxil fumarate 300 mg) loss of exclusivity in the United States and the impact of COVID-19 primarily on Gilead’s pre-exposure prophylaxis (“PrEP”) franchise and chronic hepatitis C virus (“HCV”) franchise.\n\n\nGuidance for Research and development (“R&D”) expense changed to reflect the increase in expense for obligations under the previously disclosed new commercialization and development agreement for Jyseleca® (filgotinib) with Galapagos NV. In addition, R&D expense for the full year 2020 reflects growth due to higher clinical trial and manufacturing ramp-up expenses ...

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