Slide 1: Q222 Financial Results
Q222 Financial Results August 2, 2022
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 Q222 Key Takeaways 4 Commercial Results 6-14 CMO Updates 15-20 Financial Results 21-27 Appendix 29-36
Slide 4: Gilead Q222 Key Takeaways
Gilead Q222 Key Takeaways • Total Product Sales, excluding Veklury, grew 7% YoY to $5.7B • Total HIV grew 7% YoY reflecting channel mix and demand; Biktarvy grew 28% YoY to $2.6B Financial Results • Oncology revenue >$half a billion for first time: +25% QoQ and 71% YoY • Increased FY 2022 Total Prod
Slide 5: 2022 Focus: Select Key Catalysts Across Portfolio
2022 Focus: Select Key Catalysts Across Portfolio 1H22 2H22 Program Trial Indication Update Status Program Trial Indication Update Status TROPiCS-02 HR+/HER2- mBC Potential sBLA sub. TROPiCS-02 HR+/HER2- mBC Phase 3 topline readout Trodelvy EVOKE-03 1L NSCLC Phase 3 FPI Magrolimab ENHANCE-3 1L Unfit
Slide 6: Commercial Results & Market Dynamics
Commercial Results & Market Dynamics Johanna Mercier Chief Commercial Officer
Slide 7: Strong Commercial Growth in Q222, Despite FX & LOE
Strong Commercial Growth in Q222, Despite FX & LOE Veklury HCV $445 $4.2B HIV Product Sales -46% YoY $448 -18% YoY Up 7% YoY, up 14% QoQ Trodelvy $5.7B Total Product Sales excluding Veklury HIV $159 $4,228 +79% YoY +7% YoY Up 7% YoY, up 14% QoQ Cell Therapy $368 +68% YoY HBV/HDV $6.1B Total Product
Slide 8: HIV: Demand and Channel Mix Contribute to Growth
HIV: Demand and Channel Mix Contribute to Growth Product Sales ($M) Excluding Truvada & Atripla LOE Impact, $4,538 Q222 HIV Revenue +11% YoY $4,189 $252 $4,228 $3,938 $282 $285 $590 $3,707 +28% YoY due to market share $298 $602 $295 $562 gains and channel mix $596 $550 $2.6B +19% QoQ driven by chann
Slide 9: Biktarvy: Continues to Gain Share
Biktarvy: Continues to Gain Share U.S. Treatment TRx Share1 HIV Treatment Market 45% 44% BVY • U.S. Market +4% YoY; ex-U.S. largely flat YoY 40% • Screening/diagnosis still below pre-pandemic levels 35% 4pp Share Gain vs. Q221 30% TRx Share 25% 20% 15% 44% U.S. Market Share 10% 5% 7% New Entrants +4
Slide 10: HCV: Stable Market Share
HCV: Stable Market Share Product Sales1 ($M) $549 $129 $448 $429 $393 $399 $91 $93 $111 $85 $105 $94 $94 $99 $95 Q222 sales -18% YoY; +12% QoQ $327 • YoY primarily due to channel mix leading to lower $263 $224 $209 average realized price and fewer patient starts $199 • QoQ primarily due to timing of
Slide 11: HBV / HDV: U.S. Drives Q2 Performance
HBV / HDV: U.S. Drives Q2 Performance Product Sales1 ($M) $265 $237 $247 $235 $234 Q222 sales -3% YoY; -2% QoQ • Driven by China Volume Based Procurement update, $115 offset in part by volume growth in all other regions $114 $104 $123 $128 $28 $29 $30 $24 $28 $122 $90 $104 $100 Q222 sales of $14M $8
Slide 12: Veklury: Fewer COVID-19 Hospitalizations in Q222
Veklury: Fewer COVID-19 Hospitalizations in Q222 Product Sales ($M) $1,923 $287 $1,535 $109 $1,357 $430 • Inventory draw-down in Q2 in U.S. $146 $334 • Joint Procurement Agreement signed with $829 $304 European Commission to facilitate purchases $149 $1,527 among member states $264 $445 $877 • CHMP
Slide 13: Trodelvy Demand Remains Strong
Trodelvy Demand Remains Strong Product Sales ($M) $159 $146 $3 $2 $35 $118 $25 $159M • Strong Q222 European sales $9 $101 Sales in Q222 $89 $1 • Solid demand in 2L and later mTNBC continues, offset by pricing dynamics in the U.S. $119 $120 79% $100 $109 YoY Growth • In U.S., Trodelvy now an NCCN Cat
Slide 14: Cell Therapy: Robust 68% YoY Sales Growth in Q2
Cell Therapy: Robust 68% YoY Sales Growth in Q2 Product Sales ($M) $368 Q222 sales grew 66% YoY; Up 40% QoQ $73 • YoY growth driven by strong 2L R/R LBCL launch and $274 continued global demand in 3L+ R/R LBCL and R/R FL $239 • EMA approval for 3L+ R/R FL in June 2022 $219 $222 $63 $57 $41 $47 $295
Slide 15: 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 16: Lenacapavir Clinical Hold Resolved; Programs Resume Activities
Lenacapavir Clinical Hold Resolved; Programs Resume Activities FDA clinical hold resolved with new aluminosilicate glass vials For the treatment of HIV-1 infection in heavily treatment-experienced (HTE) people with multi-drug resistant HIV-1 infection: Resubmitted NDA to FDA • PDUFA date now set for
Slide 17: Trodelvy's Clinical Program Builds Upon TNBC, HR+/HER2- & Bladder Data
Trodelvy's Clinical Program Builds Upon TNBC, HR+/HER2- & Bladder Data and Expands its Reach 2L+ 1L+ Early/Curative ASCENT: Ph3 mTNBC ASCENT-03: Ph3 mTNBC (PD-L1-) Breast Cancer TROPiCS-02: Ph3 3L+, HR+/HER2- ASCENT-04: Ph3 mTNBC (PD-L1+) Adjuvant TNBC Chemo-naïve, HR+/HER2- Ph2 1-2L mTNBC (+ magro)
Slide 18: Continued Confidence in Magrolimab Safety, Efficacy and Durability Profile
Continued Confidence in Magrolimab Safety, Efficacy and Durability Profile in Clinical Studies All Trials Have Resumed Enrollment Globally Phase 1b Data in MDS and AML SIRPα CD47 • All partial clinical holds have • High and durable response rates been lifted with no changes to in HR-MDS with CR of 3
Slide 19: Cell Therapy Data Validates Efficacy and Supports Growing Pipeline
Cell Therapy Data Validates Efficacy and Supports Growing Pipeline ORR and CR Rate by Race and Ethnicity Real World Outcomes for Yescarta at ASCO • Based on real world data for Yescarta in r/r LBCL from October 2017 to August 2020 • Consistent outcomes for survival and safety regardless of race and
Slide 20: 2022 Focus: Select Key Catalysts Across Portfolio
2022 Focus: Select Key Catalysts Across Portfolio 1H22 2H22 Program Trial Indication Update Status Program Trial Indication Update Status TROPiCS-02 HR+/HER2- mBC Potential sBLA sub. TROPiCS-02 HR+/HER2- mBC Phase 3 topline readout Trodelvy EVOKE-03 1L NSCLC Phase 3 FPI Magrolimab ENHANCE-3 1L Unfit
Slide 21: Financial Results
Financial Results Andrew Dickinson Chief Financial Officer
Slide 22: Acquired In-Process Research & Development Updates
Acquired In-Process Research & Development Updates • As announced in Q122, initial costs associated with acquiring IPR&D projects are now included in our non-GAAP results Non-GAAP; in millions Q121 Q221 Q321 Q421 FY21 • FY22 guidance does not include transactions that R&D $1,049 $1,084 $1,109 $1,984
Slide 23: Q222 Strong Underlying Growth of 11% YoY
Q222 Strong Underlying Growth of 11% YoY 11% ~$125M 7% ~ $65M HIV +8% Oncology +4% HIV +5% All Other -1% Oncology +4% All Other -2% Q222 Product Sales Growth FX Headwind HIV LOEs Q222 Product Sales Growth (ex. Veklury) (ex. Veklury) (ex. Veklury, FX & HIV LOE) 23 Note: HIV, Oncology and All Other pe
Slide 24: Solid Second Quarter Results
Solid Second Quarter Results YoY Q221 Q222 Change Non-GAAP1; in millions, except percentages and per share amounts Product Sales excl. Veklury up 7% YoY Product Sales $6,152 $6,138 0% • Growth in HIV, Cell Therapy & Trodelvy, Veklury 829 445 -46% offset in part by HCV Product Sales excluding Veklury
Slide 25: Strong 1H22 Results
Strong 1H22 Results YoY 2021 YTD 2022 YTD Change Non-GAAP1; in millions, except percentages and per share amounts Product Sales excl. Veklury up 5% YoY Product Sales $12,492 $12,672 1% • Growth in HIV, Cell Therapy & Trodelvy, Veklury 2,285 1,980 -13% offset in part by HCV Product Sales excluding Ve
Slide 26: 2022 Guidance
2022 Guidance Provided on Updated on Updated on Product Sales Guidance Feb 1, 2022 Apr 28, 2022 Aug 2, 2022 • Total Product Sales excluding Veklury Total Product Sales $23.8B - $24.3B No change $24.5B - $25.0B raised $200M; expected to grow 3-5% YoY Product Sales ex-Veklury $21.8B - $22.3B No change
Slide 27: No Change to Capital Allocation Priorities
No Change to Capital Allocation Priorities $920M Continue to invest in our business and R&D pipeline Dividend Paid in Q222 while managing expenses $0.73 per share Continue ordinary course partnerships & business development transactions $1.5B FY22 Debt Repayment Target Achieved Grow our dividend $50
Slide 28: Q&A
Daniel O-Day Andrew Dickinson Johanna Mercier Chairman and Chief Financial Officer Chief Commercial Officer Chief Executive Officer Q&A Merdad Parsey, MD, PhD Christi Shaw Chief Medical Officer Chief Executive Officer Kite Confidential – Internal Use Only
Slide 29: Appendix
Creating Possible Appendix
Slide 30: Robust Pipeline with Upcoming Catalysts
Robust Pipeline with Upcoming Catalysts 58 Clinical stage programs1 11 Potential clinical stage opt-in assets PHASE 1 PHASE 2 PHASE 3, FILED, or APPROVED Magrolimab anti-CD47 Sacituzumab govitecan-hziy Etruma combinations (ARC-6)3 Magrolimab anti-CD47 Trodelvy® Yescarta® (axi-cel) HNSCC 1L NSCLC mCR
Slide 31: Oncology Cell Therapy Pipeline
New listing since Q1’22 Change since Q1’22 Oncology Cell Therapy Pipeline Breakthrough Therapy Designation P PRIME Designation Planned program Phase 1 Phase 2 Phase 3 Filed Updates since Q1’22 Yescarta® (ZUMA-5) 3L+ FL sBLA Approved; Type II Approved Type II variation approved Tecartus® (ZUMA-3) R/R
Slide 32: Oncology Pipeline (1/2)
New listing since Q1’22 Change since Q1’22 Oncology Pipeline (1/2) Breakthrough Therapy Designation P PRIME Designation Planned program Phase 1 Phase 2 Phase 3 Filed Updates since Q1’22 AA based on Trodelvy® (TROPiCS-04) 2L mUC Phase 1b2 Sacituzumab govitecan-hziy (TROPiCS-02) HR+/HER2- mBC Sacituzu
Slide 33: Oncology Pipeline (2/2)
New listing since Q1’22 Change since Q1’22 Oncology Pipeline (2/2) Breakthrough Therapy Designation P PRIME Designation Planned program Phase 1 Phase 2 Phase 3 Filed Updates since Q1’22 P2 FPI achieved in magrolimab + Magrolimab anti-CD47 (GS-4721) TNBC sacituzumab govitecan-hziy cohort Magrolimab a
Slide 34: Viral Diseases Pipeline
New listing since Q1’22 Change since Q1’22 Viral Diseases Pipeline Breakthrough Therapy Designation P PRIME Designation Phase 1 Phase 2 Phase 3 Filed Updates since Q1’22 Oral CoV prodrug (GS-5245) COVID-19 EV NDA resubmitted, Lenacapavir capsid inhibitor (CAPELLA) HIV LA HTE NDA and MAA Filed clinic
Slide 35: Inflammatory Diseases Pipeline
New listing since Q1’22 Change since Q1’22 Inflammatory Diseases Pipeline Breakthrough Therapy Designation P PRIME Designation Phase 1 Phase 2 Phase 3 Filed Updates since Q1’22 Filgotinib JAK-1 inhibitor (GS-6034)1 Crohn’s Disease Transferred to Galapagos Inflammatory Disease TPL2 inhibitor (GS-5290
Slide 36: 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 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Mar 31, 2022 Jun 30, 2022 Total Debt, net $30.18 $27.69 $26.70 $26.21 $26.22 Debt Discounts, Premiums and Issuance Costs 0.19 0.19 0.18 0.17 0.17 Liabi