Gilead Sciences Announces Fourth Quarter and Year End 2000 Financial Results; Total Revenues Increased 16% Percent over Prior Year.Business Editors/Health and Medical Writers FOSTER CITY, Calif.--(BW HealthWire)--Jan. 25, 2001 Gilead Sciences Gilead Sciences NASDAQ: GILD is a biopharmaceutical company that discovers, develops and commercializes therapeutics to advance the care of patients suffering from life-threatening diseases. , Inc. (Nasdaq: GILD) announced today its results of operations for the fourth quarter and year ended December 31, 2000. Gilead today is reporting its transition from the company's historical accounting method to the method preferred by the Securities and Exchange Commission Staff as set forth in Staff Accounting Bulletin 101 (SAB 101). For the fourth quarter, Gilead recorded revenues from net product sales of $38.0 million, royalty revenues of $5.3 million and contract revenues of $9.2 million, including contract revenues of $150,000 due to the adoption of SAB 101. Total revenues for the fourth quarter ending December 31, 2000 were $52.5 million, which represents an eight percent increase over the same quarter in 1999. For the fourth quarter of 1999, total net revenues of $48.8 million included net product sales of $39.3 million, royalty revenues of $3.0 million and contract revenues of $6.5 million. The net loss for the three months ended December 31, 2000, was $18.4 million, or $0.39 per share. The net loss for the fourth quarter 2000 compares to a net loss of $9.0 million, or $0.20 per share, for the same quarter in 1999. Net revenues from product sales were primarily derived from sales of AmBisome(R) (amphotericin B amphotericin B (ăm'fətĕr`ĭsĭn), antibiotic that halts the growth of several disease-causing fungi. Discovered in 1956, it is produced by bacteria of the genus Streptomyces. ) liposome liposome (lī`pəsōm', lĭp`ə–), microscopic, fluid-filled pouch whose walls are made of layers of phospholipids identical to the phospholipids that make up cell membranes. for injection, accounting for 94 percent of product revenues for the fourth quarter of 2000. AmBisome sales for the fourth quarter of 2000 were $35.6 million, a decrease of two percent compared to the fourth quarter of 1999. Excluding the impact of the decline in foreign currencies relative to the U.S. dollar, AmBisome sales grew by 11 percent for the fourth quarter of 2000 over the comparable quarter of 1999. In addition, Gilead recorded product revenues of $1.2 million and $1.1 million from the sale of VISTIDE(R) (cidofovir injection) and DaunoXome(R) (daunorubicin citrate liposome daunorubicin citrate liposome Warning - Hazardous drug! DaunoXome Pharmacologic class: Anthracycline glycoside Therapeutic class: Antibiotic antineoplastic injection), respectively, during the fourth quarter of 2000. For the fourth quarter of 2000, royalty and contract revenues resulting from collaborations with corporate partners totaled $14.5 million. These revenues include contract revenues for research and development projects, royalties on product sales of AmBisome in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. by Gilead's co-promotion partner Fujisawa Healthcare, royalties on sales of Tamiflu(TM) (oseltamivir phosphate oseltamivir phosphate Tamiflu Pharmacologic class: Viral neuroaminidase inhibitor Therapeutic class: Antiviral Pregnancy risk category C Action) by Hoffmann-La Roche, and royalties on product sales of VISTIDE outside the United States by Pharmacia & Upjohn. Also included are contract revenues related to the adoption of SAB 101.Research and development (R&D) expenses for the fourth quarter of 2000 were $43.1 million, compared to $30.3 million for the same quarter in 1999. Higher spending during the fourth quarter of 2000 was associated with the accelerated development and advanced nature of the Phase III Noun 1. phase III - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the FDA clinical programs for both tenofovir DF for HIV HIV (Human Immunodeficiency Virus), either of two closely related retroviruses that invade T-helper lymphocytes and are responsible for AIDS. There are two types of HIV: HIV-1 and HIV-2. HIV-1 is responsible for the vast majority of AIDS in the United States. and adefovir dipivoxil adefovir dipivoxil Hepsera Pharmacologic class: Nucleotide reverse transcriptase inhibitor Therapeutic class: Antiviral Pregnancy risk category C FDA Boxed Warningfor hepatitis B Hepatitis B DefinitionHepatitis B is a potentially serious form of liver inflammation due to infection by the hepatitis B virus (HBV). It occurs in both rapidly developing (acute) and long-lasting (chronic) forms, and is one of the most common chronic virus (HBV HBV hepatitis B virus. HBV abbr. hepatitis B virus ). Additionally, in the fourth quarter of 2000, Gilead in-licensed two oncology compounds, one from GlaxoSmithKline and one from Southern Research Institute, and made up-front payments to both parties that are included in research and development expenses. Selling, general and administrative (SG&A) expenses for the three months ended December 31, 2000, were $23.3 million, compared to $21.4 million for the same quarter of 1999. Net interest income for the fourth quarter 2000 was $4.2 million, compared to $2.3 million for the same quarter in 1999. The increase was primarily due to the conversion of Gilead's outstanding debentures to common stock in the third quarter of 2000 and higher interest rates on the investment portfolio. Gilead also reported its results of operations for the year ended December 31, 2000. The company recorded net revenues from product sales of $149.7 million and aggregate contract and royalty revenues of $45.8 million, which includes contract revenues of $2.9 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the adoption of SAB 101. Accounting for 94 percent of product sales, AmBisome sales for the year 2000 were $141.1 million, a nine percent increase over 1999. Excluding the impact of the decline in foreign currencies relative to the U.S. dollar, AmBisome sales grew by 21 percent in 2000 over 1999. Net revenues of $195.6 million in 2000 compare to net revenues of $169.0 million in 1999. Net revenues for 1999 included product sales revenues of $139.9 million and aggregate contract and royalty revenues of $29.1 million. The net loss for the year ended December 31, 2000, including the impact of SAB 101, was $56.8 million, or $1.25 per share. Excluding the effect of the change in accounting principle, the net loss for 2000 would have been $46.0 million, or $1.01 per share. This compares to a net loss of $66.5 million, or $1.55 per share for the year ended December 31, 1999, which included expenses associated with the merger with NeXstar Pharmaceuticals, Inc. of $18.3 million or $0.42 per share. Excluding these merger-related expenses, Gilead's loss for the year ended December 31, 1999, would have been $1.13 per share. "Results for the year continue to show the strength in Gilead's portfolio of marketed products," said John C. Martin, Ph.D., President and Chief Executive Officer, Gilead Sciences. "Revenues for the year 2000 continued to be fueled by AmBisome's growth, which achieved a nine percent growth rate year-over-year. We expect the recent approvals expanding Tamiflu's use for prevention and pediatric pediatric /pe·di·at·ric/ (pe?de-at´rik) pertaining to the health of children. pe·di·at·ric adj. Of or relating to pediatrics. care will contribute to strong revenue growth in 2001." Research and development expenses for the years ended December 31, 2000 and 1999, were $131.6 million and $110.2 million, respectively. Major development projects in 2000 include Phase III clinical programs for both tenofovir DF for HIV and adefovir dipivoxil for HBV. Higher spending was associated with the accelerated development and advanced nature of these programs. In addition, Gilead in-licensed two oncology compounds, one from GlaxoSmithKline and one from Southern Research Institute, and made up-front payments to both parties. Selling, general and administrative expenses for the year ended December 31, 2000, were $82.8 million compared to $100.1 million for 1999. The decrease in SG&A expenses for 2000 is due to merger costs of $18.3 million that were included in SG&A expenses in 1999. Net interest income for the year ended December 31, 2000 was $13.3 million, compared to $9.9 million for 1999. The increase was primarily due to the conversion of Gilead's outstanding debentures to common stock in the third quarter of 2000 and higher interest rates on the investment portfolio. The company also reported equity in the loss of its unconsolidated affiliate of $2.9 million and $4.7 million for the years ended December 31, 2000 and 1999, respectively. The losses are derived from Gilead's 49 percent interest in Proligo L.L.C., a manufacturing joint venture between Gilead and SKW SKW Schweizerischer Kosmetik- und Waschmittelverband (Swiss union of cosmetics and detergents) SKW Strike Warfare Americas, Inc. As of December 31, 2000, the company had cash, cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of $512.9 million, compared to $294.4 million on December 31, 1999. The increase is primarily due to the issuance of $250 million of convertible subordinated notes in December 2000. Product and Pipeline Highlights "The fourth quarter was very productive and exciting for Gilead. Tamiflu received three major approvals, we initiated three clinical studies for NX 211 and in-licensed two new oncology products. Additionally, the completion of the 24-week endpoint for one of our pivotal tenofovir studies marks a milestone in the development of this important anti-HIV compound," said Dr. Martin. "We remain dedicated to achieving vigorous commercial growth. In line with our vision, we renegotiated the terms of our licensing agreement for tenofovir DF and adefovir dipivoxil, completed a $250 million financing and our Board of Directors authorized an increase in authorized capital authorized capital n (COMM) → capital m autorizado or social authorized capital n (Comm) → capital social , subject to stockholder approval, in order to implement a two-for-one stock split." AmBisome(R)(amphotericin B) liposome for injection for Severe Fungal Infection fungal infection, infection caused by a fungus (see Fungi), some affecting animals, others plants. Fungal Infections of Human and Animals In November, the Journal of Clinical Infectious Diseases Clinical Infectious Diseases in an academic journal published by the University of Chicago Press which publishes articles on the pathogenesis, clinical investigation, medical microbiology, diagnosis, immune mechanisms, and treatment of diseases caused by infectious agents. published results of a multi-center head-to-head study comparing the use of AmBisome to Abelcet(R) (amphotericin B) lipid complex in the empirical treatment Empirical treatment Medical treatment that is given on the basis of the doctor's observations and experience. Mentioned in: Enterobacterial Infections of patients with febrile febrile /feb·rile/ (feb´ril) pertaining to or characterized by fever. feb·rile adj. Of, relating to, or characterized by fever; feverish. neutropenia Neutropenia Definition Neutropenia is an abnormally low level of neutrophils in the blood. Neutrophils are white blood cells (WBCs) produced in the bone marrow that ingest bacteria. . Results indicate that AmBisome demonstrates an improved safety profile in a direct comparison with Abelcet with regard to nephrotoxicity neph·ro·tox·ic·i·ty n. The quality or state of being toxic to kidney cells. nephrotoxicity(ne·fr and infusion-related reactions. Also during the quarter, AmBisome was cleared for marketing in Norway and Singapore. Italian regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities approved AmBisome for the treatment of cryptococcal meningistis in AIDS patients, and French regulatory authorities provided clearance for use of AmBisome for the empirical treatment of febrile neutropenic patients. Tamiflu(TM) (oseltamivir phosphate) for Influenza In the fourth quarter of 2000, Roche received three significant marketing approvals for Tamiflu, the first neuraminidase inhibitor neuraminidase inhibitor Infectious disease Any antiviral that inhibits neuraminidase, an enzyme essential for replication of influenza and other viruses. See Influenza. available in pill form. First, the U.S. Food and Drug Administration (FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ) approved Tamiflu for the prevention of naturally occurring influenza A influenza A n. Influenza caused by infection with a strain of influenza virus type A. influenza A Infectious disease An avian virus, especially of ducks–which in China live near the pig reservoir and 'vector'; & B in adults and adolescents 13 years and older. The FDA also granted marketing approval of Tamiflu, available in a liquid suspension, for the treatment of influenza in children one year and older. The suspension for pediatric patients pediatric patient Child, see there can also be used for adults who cannot swallow a capsule. In addition, Roche received approval for Tamiflu in Japan for the treatment of influenza A and B virus infection in adults and reimbursement under the Japanese national health insurance program. Roche will make Tamiflu available in pharmacies and hospitals in Japan on February 2, 2001. Tenofovir disoproxil fumarate tenofovir disoproxil fumarate Viread Pharmacologic class: Nucleoside analog reverse transcriptase inhibitor Therapeutic class: Antiretroviral Pregnancy risk category B (tenofovir DF) for HIVTenofovir DF reached an important milestone in November when the last patient enrolled in Study 907 reached the 24-week timepoint. Preliminary analysis of the 24-week results from this study will be released in the first quarter of 2001. Study 907 is a Phase III intensification trial evaluating the safety and efficacy of tenofovir DF in 552 treatment-experienced patients. Additionally in November, the U.S. FDA granted tenofovir DF Fast-Track designation. In October, data from the 48-week Study 902 further characterizing the viral resistance profile of tenofovir DF were presented at the 5th International Conference on Drug Therapy in HIV Infection held in Glasgow, Scotland. The data indicate that the addition of tenofovir DF resulted in a significant reduction in HIV RNA HIV RNA AIDS RNA of HIV origin, a serum marker of a Pt's 'HIV-ness,' now the standard by which Pt response to antiretovirals is evaluated; HIV RNA levels correlate with CD4+ count, response to antiviral therapy, clinical stage and disease progression. in treatment-experienced patients with common viral mutations associated with thymidine thymidine /thy·mi·dine/ (thi´mi-den) thymine linked to ribose, a rarely occurring base in rRNA and tRNA; frequently used incorrectly to denote deoxythymidine. Symbol T. thy·mi·dine n. analog (AZT/d4T) and/or 3TC viral mutations. Adefovir Dipivoxil for HBV Two significant milestones were achieved during the fourth quarter in the development of adefovir dipivoxil, Gilead's investigational compound for the treatment of patients with chronic HBV infection. The People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China State Drug Administration approved Gilead's clinical trial application for adefovir dipivoxil allowing Phase I studies in China to be initiated in 2001. Gilead was granted Class 1 designation for adefovir dipivoxil in December 1999, which provides for 12 years of market upon receipt of marketing authorization. At the 51st American Association American Association refers to one of the following professional baseball leagues:
Liver disease is a general term for any damage that reduces the functioning of the liver. Description The liver is a large, solid organ located in the upper right-hand side of the abdomen. in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. , Gilead announced results from an ongoing open-label pilot study evaluating the safety and efficacy of adefovir dipivoxil 10 mg once daily as a treatment for lamivudine-resistant chronic HBV infection in 35 patients co-infected with HIV and HBV. Preliminary results from this 12-month study show that treatment with adefovir dipivoxil 10 mg once daily is associated with a mean decrease in HBV DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. of 3.40 log10 copies/mL at 24 weeks. Gilead is currently conducting two fully enrolled, placebo-controlled Phase III clinical trials Noun 1. phase III clinical trial - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the to evaluate adefovir dipivoxil as a potential treatment for chronic HBV in non-HIV infected patients. Oncology Program In November, Gilead initiated its first Phase II clinical trial Noun 1. phase II clinical trial - a clinical trial on more persons than in phase I; intended to evaluate the efficacy of a treatment for the condition it is intended to treat; possible side effects are monitored phase II program of NX 211 with a study designed to evaluate its safety and efficacy in patients with relapsed ovarian cancer ovarian cancer Malignant tumour of the ovaries. Risk factors include early age of first menstruation (before age 12), late onset of menopause (after age 52), absence of pregnancy, presence of specific genetic mutations, use of fertility drugs, and personal history of breast , followed shortly by the initiation of a second study in ovarian cancer patients who are resistant to treatment with topotecan. In addition, the company initiated a Phase II trial designed to evaluate the anti-tumor efficacy and safety of NX 211 in patients with recurrent small cell lung cancer Lung Cancer, Small Cell Definition Small cell lung cancer is a disease in which the cells of the lung tissues grow uncontrollably and form tumors. Description Lung cancer is divided into two main types: small cell and non-small cell. . NX 211 is a liposomal formulation of lurtotecan, a novel topoisomerase topoisomerase an enzyme involved in DNA replication that introduces a single-strand nick in the DNA enabling it to swivel and thereby relieve the accumulated winding strain generated during unwinding of the double helix. I inhibitor for the potential treatment of various solid tumors. Gilead also made significant progress in the fourth quarter in building its oncology portfolio through the in-licensing of two oncology compounds. First, the company entered into an agreement with GlaxoSmithKline granting Gilead exclusive, worldwide rights to GW1843U89, an investigational thymidylate synthase Thymidylate synthase is the enzyme used to generate thymidine monophosphate (dTMP), which is subsequently phosphorylated to thymidine triphosphate for use in DNA synthesis. (TS) inhibitor for the potential treatment of cancer, which had progressed into a Phase I clinical trial Noun 1. phase I clinical trial - a clinical trial on a few persons to determine the safety of a new drug or invasive medical device; for drugs, dosage or toxicity limits should be obtained phase I . Gilead has reformulated the compound as a liposomal agent called GS 7904L and initiated preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. development, with the goal of submitting an Investigational New Drug Application for the product before the end of 2001. In December, Gilead announced a licensing agreement with the Southern Research Institute granting Gilead exclusive worldwide development and marketing rights to 4'-thio-araC (GS 7836), a nucleoside analogue nucleoside analogue n. Any of a group of antiviral drugs that inhibit the viral enzyme reverse transcriptase and are used in the treatment of HIV infection. for the potential treatment of cancer. Gilead plans to initiate Phase I clinical trials of this compound in early 2002. Corporate Activities Gilead's Board of Directors approved an increase in the number of authorized shares Authorized shares Number of shares authorized for issuance by a firm's corporate charter. of common stock from 100,000,000 to 500,000,000. Gilead plans to hold a Special Meeting of the Stockholders on February 2, 2001 to vote upon this increase in common stock. The primary purpose of the increase is to enable the Board to implement a split of the company's common stock, to be effected in the form of a stock dividend. Earlier this month, the Board approved a two-for-one stock split, subject to stockholder approval of the increase in common stock. The proposed increase in authorized shares would also provide Gilead with flexibility to implement future stock splits and conduct other transactions involving the issuance of the company's common stock, where appropriate. In December, Gilead issued $250 million of convertible subordinated notes through a Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. offering to qualified institutional buyers In law, a Qualified Institutional Buyer is a purchaser of securities that is financially sophisticated and is legally recognized by security market regulators to need less protection from sellers than most members of the public. . These notes are convertible into Gilead common stock at a price equal to $98.25 per share, subject to adjustment in certain circumstances. The notes bear interest at 5.0 percent per annum Per annum Yearly. , have a seven-year term and are redeemable by Gilead any time after December 20, 2003. Gilead has agreed to file a registration statement for the resale of the notes and the shares of common stock issuable upon conversion of the notes within 90 days after the closing of the offering. Conference Call Gilead will host a conference call today, January 25, 2001, at 4:30 p.m. ET. The dial-in number for the call is 800-633-8620 domestic; 212-676-4902 international. The replay of this call will be available from 7:00 p.m. January 25, 2001, until 7:00 p.m. on January 28, 2001. The dial-in number for the replay is 800-633-8284 domestic, 858-812-6440 international; the password is 17337262. Gilead will also be webcasting the conference call; this feature will be available on our website at www.gilead.com. The information provided on the teleconference and on the webcast is only accurate at the time of the call, and Gilead will take no responsibility for providing updated information. About Gilead Gilead Sciences, Inc., headquartered in Foster City, CA, is an independent biopharmaceutical company that seeks to provide accelerated solutions for patients and the people who care for them. Gilead discovers, develops, manufactures and commercializes proprietary therapeutics for challenging infectious diseases infectious diseases: see communicable diseases. (viral, fungal and bacterial infections) and cancer. Gilead maintains research, development or manufacturing facilities in Foster City, CA; Boulder, CO; San Dimas, CA; Cambridge, UK, and Dublin, Ireland, and sales and marketing organizations in the United States, Europe and Australia. Forward-looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements include those regarding Gilead's future financial results, including: revenues, research and development expenses, selling, general and administrative expenses, the efficacy of any marketed or pipeline development products, the ability to obtain marketing approval for Gilead's marketed or pipeline development products, or the competitive positioning of its marketed or pipeline development products. Gilead cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially. These risks and uncertainties include those that can cause fluctuations in our financial results, such as our ability and the ability of our partners to successfully market our products and maintain revenue growth; our ability to control the timing and amount of spending in our research and clinical programs; fluctuations in foreign currency against the U.S. dollar; our ability to achieve and the timing of milestones, as well as risk and uncertainties that effect our future prospects such as the risk that we may not continue to observe the safety, tolerability tol·er·a·ble adj. 1. Capable of being tolerated; endurable. 2. Fairly good; passable. See Synonyms at average. tol and efficacy data for our products and product candidates that we are observing today; other risks relating to the regulatory approval of our products and product candidates; and other risks identified from time to time in the company's reports filed with the U.S. Securities and Exchange Commission. The company directs readers to its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , for the year ended December 31, 1999, filed in March 2000, and its 2000 Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. filed with the SEC. Gilead claims the protection of the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. Additionally, Gilead does not take responsibility to update information contained in this press release or the conference call as it changes.
GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS UNDER SAB 101 (in
thousands, except per share
amounts)
Three months ended Year ended
December 31, December 31,
------------------- ---------------------
2000 1999 2000 1999
-------- -------- -------- --------
(unaudited) (unaudited) (unaudited) (note 2)
(note 1) (note 1)
Revenues:
Product sales,
net $ 37,972 $ 39,262 $ 149,709 $ 139,890
Royalty revenue,
net 5,260 3,005 24,591 10,431
Contract revenue 9,093 6,509 18,315 18,658
Contract revenues -
SAB 101 adoption 150 -- 2,940 --
---------- ---------- ---------- ----------
Net revenues 52,475 48,776 195,555 168,979
Cost of goods sold 7,498 7,801 33,512 29,546
---------- ---------- ---------- ----------
Gross profit 44,977 40,975 162,043 139,433
Operating expenses:
Research and
development 43,128 30,340 131,568 110,212
Selling, general and
administrative 23,290 21,361 82,793 100,080
---------- ---------- ---------- ----------
Total operating
expenses 66,418 51,701 214,361 210,292
---------- ---------- ---------- ----------
Loss from operations (21,441) (10,726) (52,318) (70,859)
Interest income 4,888 3,898 17,634 16,435
Interest expense (706) (1,579) (4,365) (6,518)
---------- ---------- ---------- ----------
Loss before provision
for income taxes,
equity in loss of
unconsolidated
affiliate and
cumulative effect
of change in
accounting
principle (17,259) (8,407) (39,049 (60,942)
Provision for
income taxes 153 162 1,199 888
Equity in loss of
unconsolidated
affiliate 973 385 2,858 4,656
---------- ---------- ---------- ----------
Loss before cumulative
effect of change in
accounting principle (18,385) ( 8,954) (43,106) (66,486)
Cumulative effect of
change in accounting
principle -- -- (13,670) --
---------- ---------- ---------- ----------
Net loss $ (18,385) $ (8,954) $ (56,776) $ (66,486)
========== ========== ========== ==========
Basic and diluted
amounts per
common share:
Loss before
cumulative effect
of change in
accounting
principle $ (0.39) $ (0.20) $ (0.95) $ (1.55)
Cumulative effect
of change in
accounting
principle -- -- (0.30) --
---------- ---------- ---------- ----------
Net loss $ (0.39) $ (0.20) $ (1.25) $ (1.55)
========== ========== ========== ==========
Common shares used
in the calculation
of Basic and diluted
amounts per share 47,056 43,964 45,525 42,826
========== ========== ========== ==========
Certain prior period amounts have been reclassified to conform to
the current presentation.
COMPARATIVE AMOUNTS INCLUDING AND EXCLUDING THE EFFECT OF SAB 101
(in thousands, except per share amounts)
(unaudited)
Three months ended Year ended
December 31, December 31,
2000 2000
-------------------------- --------------------------
Including Excluding Including SAB Excluding
SAB 101 SAB 101 101 SAB 101
----------- ----------- ----------- -----------
Total revenues $ 52,475 $ 52,325 $ 195,555 $ 192,615
Loss from
operations $ (21,441) $ (21,591) $ (52,318) $ (55,258)
Net loss $ (18,385) $ (18,535) $ (56,776) $ (46,046)
========== ========== ========== ==========
Basic and
diluted net
loss per
common share $ (0.39) $ (0.39) $ (1.25) $ (1.01)
========== ========= ========== ===========
Notes:
(1) Gilead adopted the Securities and Exchange Commission's Staff
Accounting Bulletin No. 101 (SAB 101) in the fourth quarter of 2000,
effective January 1, 2000, and recorded a cumulative effect of a
change in accounting principle related to contract revenue recognized
in prior periods. The resulting deferred revenue is being recognized
prospectively, beginning in the first quarter of 2000, over the
related contractual obligations.
(2) Derived from audited financial statements for that period.
CONDENSED CONSOLIDATED BALANCE SHEETS UNDER SAB 101
(in thousands)
December 31, December 31,
2000 1999
------------------ ------------------
(unaudited) (note 1)
Assets
Cash, cash
equivalents and
marketable securities $ 512,878 $ 294,394
Other current assets 80,920 77,587
------------- -------------
Total current assets 593,798 371,981
Property, plant and
equipment, net 55,174 51,398
Other noncurrent
assets 29,127 13,429
------------- -------------
$ 678,099 $ 436,808
============= ==============
Liabilities and
stockholders' equity
Current liabilities $ 58,238 $ 47,877
Long-term obligations 268,737 91,639
Stockholders' equity 351,124 297,292
------------- --------------
$ 678,099 $ 436,808
============= ==============
Note
(1) Derived from audited financial statements at that date.
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