gilead is the leader of hep C drugs and 14 brand names with 1/3 of market cap in debt

Accuracy score :
97%

Gilead Sciences Inc  GILD

Summary (from latest annual report and quarterly report 2016)

  • Total equity  : 15.53 billion USD
  • Market Cap is 96.4 billion USD ( last price of the stock is 73.03 USD)
  • Gilead Sciences Inc is a research-based biopharmaceutical company that discovers, develops and commercializes new medicines for different medical sectors
  • Equity of total company increased from 15.42 billion USD in 2014 to 15.53 billion in 2016
  • Company has 6.48 billion USD in cash on account (from latest quarterly report)
  •  Total equity – cash on account = 15.53 billion USD – 6.48 billion USD = 9.05 billion USD
  • In 2016 company has 21.42 billion USD long-term debt, short – term debt was 700 million USD (In 2014 total debt was 12.4 billion USD)
  • In 2016 quarterly report - total equity increased to 15.53 billion  USD from 15.42 billion USD in 2014, total debt is 22.12 billion USD in 2016)
  • Company's revenue increased in 2015 to 32.63 billion USD from 24.89 billion in 2014
  • Net income in 2015 was 18.1 billion USD, Net income in 2014 was 12.1 billion USD
  • In 2015 company paid 1.8 billion usd dividend to its shareholders

Gilead Sciences Inc  GILD

Gilead Sciences is an American biopharmaceutical company that discovers, develops and commercializes therapeutics. For many years since the company was founded, the company concentrated primarily on antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza. The company's current commercially available products include Atripla, Complera, Emtriva, Viread, Tybost, Vitekta, Truvada, Stribild, Harvoni, Hepsera, Sovaldi, Zydelig, Letairis, Lexiscan, Ranexa, Cayston, Tamiflu, AmBisome, and Macugen.

Headquartered and founded in Foster City, California, Gilead has operations in North America, Europe and Australia. As of the end of 2015, the company had approximately 7,900 full-time employees. Gilead is a member of the NASDAQ Biotechnology Index and the S&P 500.

  • In 2015, approximately 34% of GILD product sales were generated outside the United States
  • Product sales in the United States increased by 17% to $21.2 billion in 2015 compared to $18.1 billion in 2014
  • Product sales in Europe increased by 39% to $7.2 billion in 2015 compared to $5.1 billion in 2014
  • Product sales in other international locations increased to $3.8 billion in 2015 compared to $1.2 billion in 2014

 

 GILD standalone subsidiaries and acquisitions :

  • In March 1999, Gilead acquired NeXstar Pharmaceuticals for 550 million USD
  • In 2003, Gilead acquired Triangle Pharmaceuticals for 464 million USD (Triangle owned the development and commercialization rights to emtricitabine, which although marketed as a stand-alone product (Emtriva), is also a component of the more profitable combination products Atripla and Truvada)
  • In 2006, Gilead acquired Corus Pharma for 365 million USD (The acquisition of Corus signaled Gilead's entry into the respiratory arena. Corus was developing aztreonam lysine for the treatment of patients with cystic fibrosis who are infected with Pseudomonas aeruginosa)
  • In 2006, Gilead acquired Myogen for 2.5 billion USD, the acquisition of Myogen has solidified Gilead's position in this therapeutic arena
  • In 2006, Gilead acquired Raylo Chemicals for 148 million USD
  • In 2007, Gilead acquired Nycomed fr. Altana - Cork for 47 million USD
  • In 2009, Gilead acquired CV Therapeutics for 1.4 billion USD (this acquisition brings Ranexa and Lexiscan as commercial products. Ranexa is a cardiovascular drug used to treat chest pain related to coronary artery disease. These products and pipeline build out Gilead's cardiovascular franchise)
  • In 2010, Gilead acquired CGI Pharmaceuticals for 120 million USD
  • In 2010, Gilead acquired Arresto Biosciences for 225 million USD
  • In 2011, Gilead acquired Calistoga Pharmaceuticals for 375 million USD
  • In 2011, Gilead acquired Pharmasset for 10.4 billion USD,  this acquisition helps Gilead take the lead in HCV with 7977 (Sofosbuvir)
  • In 2013, Gilead acquired YM Biosciences for 510 million USD
  • In 2015, Gilead acquired Phenex Pharmaceuticals for 470 million USD
  • In 2015, Gilead acquired EpiTherapeutics for 65 million USD
  • In 2015, Gilead acquired Galapagos NV for 725 million USD, this acquisition will give Gilead access to experimental anti-inflammatory drug filgotinib which is planned to treat rheumatoid arthritis, ulcerative colitis, and Crohn's disease
  • In 2016, Gilead acquired Nimbus Apollo for 400 million USD, this acquisition will give Gilead the compound NDI-010976 (an ACC inhibitor) and other preclinical ACC inhibitors for the treatment of non-alcoholic steatohepatitis and for the potential treatment of hepatocellular carcinoma

 

Total = 18.76 billion usd

  • In January 2015, Board of Directors authorized a five-year, $15.0 billion stock repurchase program (2015 Program). The 2015 Program commenced after the $5.0 billion stock repurchase program authorized by Board of Directors in May 2014 was completed in the first quarter of 2015. The $5.0 billion repurchase program authorized by their Board of Directors in January 2011 was completed in 2014. As of December 31, 2015, the remaining authorized repurchase amount under the 2015 Program was $8.0 billion
  • In February 2016, GILD entered into an accelerated share repurchase program (“ASR”) to repurchase $5.0 billion of their common stock
  • In February 2016, their Board of Directors authorized a new $12.0 billion share repurchase program (2016 Program) which will commence upon the completion of their 2015 Program. Purchases under the 2016 Program may be made in the open market or in privately negotiated transactions

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is 22.12 billion USD, company has 6.48 billion USD in cash on account, ROE is around 100 %).