Slide 1: Q123 Financial Results
Q123 Financial Results April 27, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements included in this presentation 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 un
Slide 3: Contents
Contents Q123 Key Takeaways 4 Commercial Results 6-13 CMO Updates 14-19 Financial Results 20-24 Appendix 26-33
Slide 4: Gilead Q123 Key Takeaways
Gilead Q123 Key Takeaways • Total Product Sales, excl. Veklury, +15% YoY to $5.7B, with strong HIV and Oncology growth • Total HIV +13% YoY strong growth amid seasonal dynamics, with Biktarvy +24% YoY to $2.7B Financial Results • Oncology +59% YoY to $670M driven by Cell Therapy and Trodelvy • Opera
Slide 5: 2023 Focus: Select Key Catalysts Across Portfolio
2023 Focus: Select Key Catalysts Across Portfolio 1H23 Completed On Track Program Trial Indication Update Status Program Trial Indication Update Status TROPiCS-02 HR+/HER2- mBC sBLA decision ZUMA-23 1L HR LBCL Phase 3 FPI Yescarta Trodelvy EVOKE-03 1L NSCLC Phase 3 FPI ZUMA-24 2L LBCL OPT Interim ph
Slide 6: Commercial Results & Market Dynamics
Commercial Results & Market Dynamics Johanna Mercier Chief Commercial Officer
Slide 7: Robust HIV and Oncology Growth YoY in Q123
Robust HIV and Oncology Growth YoY in Q123 Veklury $573M -63% YoY $4.2B HIV Product Sales Up 13% YoY, down 12% QoQ $670M Oncology Product Sales Up 59% YoY, up 9% QoQ Trodelvy $222M +52% YoY HIV Cell Therapy Total Product Sales excluding Veklury $5.7B $4.2B $448M +13% YoY +64% YoY Up 15% YoY, down 9%
Slide 8: HIV: Strong Demand Amid Seasonal Dynamics
HIV: Strong Demand Amid Seasonal Dynamics Product Sales ($M) Solid Q123 Growth of +13% YoY • YoY due to favorable pricing dynamics, higher demand $4,772 and lower inventory draw-down $4,487 $293 $4,228 $4,190 $285 $566 • QoQ decline due to seasonal inventory and pricing $282 $298 $3,707 $541 dynamic
Slide 9: Leadership Across HIV Treatment & PrEP
Leadership Across HIV Treatment & PrEP Q123 sales: $2.7B; +24% YoY, -8% QoQ Q123 sales: $449M; +20% YoY, -16% QoQ >46% 3% >40% +14% U.S. Treatment U.S. Market Share U.S. PrEP U.S. Descovy for PrEP Market Share Gain YoY Market Share Demand Growth YoY +24% YoY due to higher demand and favorable pricin
Slide 10: Liver Disease: Maintaining Position in Viral Hepatitis
Liver Disease: Maintaining Position in Viral Hepatitis Product Sales ($M) $788 $12 $682 $694 $675 $635 $14 $13 $11 $251 $11 $220 $242 $219 $224 Q123 sales +6% YoY; -3% QoQ • +6% YoY primarily due to higher demand and timing of DOC $524 $448 $439 $445 HCV purchases in the U.S. $399 • -3% QoQ primaril
Slide 11: Veklury: Solid Share Despite Lower Hospitalizations
Veklury: Solid Share Despite Lower Hospitalizations Product Sales ($M) $1,535 $430 $304 $925 $1,000 >50% ~13M U.S. hospitalized patients People treated with $462 treated for COVID1 remdesivir to date2 $458 $573 $445 $142 $209 $801 $130 • Obeldesivir3 Phase 3 trials underway in non-hospitalized $278
Slide 12: Trodelvy: Expanding Breast Cancer Options
Trodelvy: Expanding Breast Cancer Options Product Sales ($M) $222 $6 $195 $180 $4 $54 $3 $146 $159 $3 $38 $44 $222M +52% +14% $2 $35 Sales in Q123 YoY Growth QoQ Growth $25 • Solid U.S. demand, up 7% QoQ $162 $139 $146 • FDA approval received for pre-treated HR+/HER2- mBC $119 $120 in February 2023
Slide 13: Cell Therapy: Demand Drives YoY Growth
Cell Therapy: Demand Drives YoY Growth Product Sales ($M) $448 $419 $398 $89 $368 $82 Q123 sales +70% YoY; Up 6% QoQ $81 $73 • YoY growth driven by higher demand across 2L and 3L R/R large B-cell lymphoma, as well as favorable pricing $274 dynamics in Europe $63 $359 $337 $317 $295 $211 Q123 sales +
Slide 14: CMO Updates
CMO Updates M e r d a d P a r s e y, M D , P h D Chief Medical Officer
Slide 15: Gilead Demonstrates Leadership in HIV at CROI
Gilead Demonstrates Leadership in HIV at CROI 83 Virology Abstracts at CROI 20231 3 HIV Oral Presentations at CROI 2023 13 Clinical Programs in HIV Pre-Clinical Clinical Trials Real World Analysis In vivo macaque model 8+ Years Pooled Analysis HIV Prevention Lenacapavir TDF/emtricitabine In vitro cr
Slide 16: Committed to Continued Efforts in COVID-19
Committed to Continued Efforts in COVID-19 Obeldesivir (GS-5245) Real World Analyses • Reduced 30-day hospital readmission across variants1 High-Risk Standard-Risk • Improves 14-day and 28-day survival, including in ~45% ~55% Diagnosed patients with Diagnosed patients with immunocompromised patients
Slide 17: Trodelvy: Cornerstone of Solid Tumor Portfolio
Trodelvy: Cornerstone of Solid Tumor Portfolio Breast Cancer NSCLC Bladder Cancer New FDA Expanding ASCO GU Approval NSCLC Program1 Data Update • FDA Approval in Pre-treated • EVOKE-01 (2-3L) Data • TROPHY Cohort 1 Data HR+/HER2- mBC and EC in 2024 Update Decision Expected 2H23 • EVOKE-03 (1L) FPI •
Slide 18: Cell Therapy Portfolio Continues to Expand
Cell Therapy Portfolio Continues to Expand Hematological Cancers Key Updates: Expanding into Multiple Myeloma Large B-cell Follicular Acute Mantle Cell Acute Transaction Closed Jan 2023 Lymphocytic Myeloid Lymphoma Lymphoma Lymphoma Leukemia Leukemia Investment in Rapid Manufacturing Multiple Rare B
Slide 19: 2023 Focus: Select Key Catalysts Across Portfolio
2023 Focus: Select Key Catalysts Across Portfolio 1H23 Completed On Track Program Trial Indication Update Status Program Trial Indication Update Status TROPiCS-02 HR+/HER2- mBC sBLA decision ZUMA-23 1L HR LBCL Phase 3 FPI Yescarta Trodelvy EVOKE-03 1L NSCLC Phase 3 FPI ZUMA-24 2L LBCL OPT Interim ph
Slide 20: Financial Results
Financial Results Andrew Dickinson Chief Financial Officer
Slide 21: Q123 Strong Base Sales Growth of 15% YoY
Q123 Strong Base Sales Growth of 15% YoY Product Sales ($M) $6,534 -3% Total Product Sales down 3% YoY $6,306 $573 • Veklury decline partially offset by base business growth $1,535 • Net of hedges, FX negatively impacted Total Product Sales by ~$106M YoY, or ~2% +15% Product Sales excl. Veklury up 1
Slide 22: First Quarter Non-GAAP Data
First Quarter Non-GAAP Data YoY Q122 Q123 Change In millions, except percentages and per share amounts Expenses COGS 825 871 - Product Gross Margin 87% 86% - • R&D primarily driven by increased clinical activities R&D1 1,150 1,439 +25% • Acquired IPR&D in Q123 includes expenses associated with Tmuni
Slide 23: 2023 Guidance
2023 Guidance 2 February 2023 27 April 2023 Total Product Sales $26.0B - $26.5B No change Product Sales ex-Veklury $24.0B - $24.5B No change Product Sales Guidance Unchanged Veklury Sales ~$2.0B No change • Base business growth of 4% to 6% YoY Non-GAAP Product Gross Margin 86% No change Non-GAAP Ope
Slide 24: Capital Priorities Unchanged: Returned ~$1.4B in Q1
Capital Priorities Unchanged: Returned ~$1.4B in Q1 Continue to invest in our business and R&D pipeline $969M while managing expenses Dividends Paid in Q123 Continue ordinary course partnerships and business development transactions $400M Grow our dividend Shares Repurchased in Q123 Repurchase share
Slide 25: Q&A
Daniel O’Day Andrew Dickinson Q&A Chairman and Chief Financial Officer Chief Executive Officer Johanna Mercier Merdad Parsey, MD, PhD Chief Commercial Officer Chief Medical Officer
Slide 26: Appendix
Creating Possible Appendix
Slide 27: Robust Pipeline with Upcoming Catalysts
Robust Pipeline with Upcoming Catalysts 61 Clinical stage programs1 11 Potential clinical stage opt-in assets PHASE 1 PHASE 2 PHASE 3, FILED, or APPROVED Trodelvy® sacituzumab govitecan-hziy + pembro magrolimab + aza 2L mUC 1L NSCLC (PD-L1+, TPS>50%) 1L TP53m AML Trodelvy® dom + zim magrolimab + ven
Slide 28: Oncology Cell Therapy Pipeline
New listing since Q4’22 Change since Q4’22 Oncology Cell Therapy Pipeline Breakthrough Therapy Designation P PRIME Designation Phase 1 Phase 2 Phase 3 Filed Updates since Q4’22 Axicabtagene ciloleucel (ZUMA-22) 2L+ HR FL Axicabtagene ciloleucel (ZUMA-23) 1L HR LBCL P3 FPI achieved Axicabtagene cilol
Slide 29: Oncology Pipeline 1/2
New listing since Q4’22 Change since Q4’22 Oncology Pipeline 1/2 Breakthrough Therapy Designation P PRIME Designation Phase 1 Phase 2 Phase 3 Filed Updates since Q4’22 Trodelvy® (TROPiCS-02) HR+/HER2- mBC sBLA Approved & MAA Filed FDA approval granted Sacituzumab govitecan-hziy (ASCENT-03) 1L mTNBC
Slide 30: Oncology Pipeline 2/2
New listing since Q4’22 Change since Q4’22 Oncology Pipeline 2/2 Breakthrough Therapy Designation P PRIME Designation Phase 1 Phase 2 Phase 3 Filed Updates since Q4’22 Domvanalimab + zimberelimab + chemotherapy (STAR-221)2 1L Upper GI intestinal Gastro- Etrumadenant + zimberelimab combinations (ARC-
Slide 31: Viral Diseases Pipeline
New listing since Q4’22 Change since Q4’22 Viral Diseases Pipeline Breakthrough Therapy Designation P PRIME Designation Phase 1 Phase 2 Phase 3 Filed Updates since Q4’22 Obeldesivir (BIRCH, OAKTREE) COVID-19 OAKTREE P3 FPI achieved EV Lenacapavir (PURPOSE 1 & 2) HIV PrEP Lenacapavir/bictegravir oral
Slide 32: Inflammatory Diseases Pipeline
New listing since Q4’22 Change since Q4’22 Inflammatory Diseases Pipeline Breakthrough Therapy Designation P PRIME Designation Phase 1 Phase 2 Phase 3 Filed Updates since Q4’22 Tilpisertib fosmecarbil Inflammatory Bowel Disease Opt- Fib- Inflammatory Disease Edecesertib Lupus α4β7 inhibitor (GS-1427
Slide 33: GAAP to Non-GAAP Reconciliation of Outstanding Adjusted Debt and Adjusted EBITDA
GAAP to Non-GAAP Reconciliation of Outstanding Adjusted Debt and Adjusted EBITDA in billions where applicable Mar 31, 2022 Jun 30, 2022 Sep 30, 2022 Dec 31, 2022 Mar 31, 2023 Total Debt, net $26.21 $26.22 $25.22 $25.23 $25.24 Debt Discounts, Premiums and Issuance Costs 0.17 0.17 0.17 0.16 0.16 Liabi