EARNINGS:
Friday April 25 9:44 AM EDT
Gilead announces first quarter 1997 financial results
FOSTER CITY, Calif.--(BUSINESS WIRE)--April 25, 1997-- Gilead Sciences Inc announced
today its results of operations for the first quarter ended March 31, 1997. For this quarter, the
Company reported net revenues from product sales of $3,034,000, revenues from collaborative
agreements of $2,330,000 and royalty revenues of $102,000, for total revenues of $5,466,000, and
net interest income of $4,046,000. This compares to revenues from collaborative agreements of
$779,000 and net interest income of $2,567,000 for the same quarter in 1996. The net loss for the
three months ended March 31, 1997 was $7,948,000 or $0.27 per share, compared to a net loss of
$10,802,000 or $0.42 per share for the same quarter in 1996.
As of March 31, 1997, the Company had cash, cash equivalents and short-term investments of
$297,394,000 compared to $295,963,000 at December 31, 1996. The increase in cash, cash
equivalents and short-term investments is primarily attributable to cash payments received from
collaborative partners during the quarter that will be recognized as revenue in other periods.
The net revenues from product sales were derived from the sale of VISTIDE(R) (cidofovir
injection), which Gilead independently markets in the United States for the treatment of
cytomegalovirus (CMV) retinitis in people with AIDS.
Gilead's revenues from collaborative agreements result from research and development and/or
milestone payments received from the Company's corporate partners.
In August 1996, Gilead licensed rights to market VISTIDE in all countries outside the United States
to Pharmacia & Upjohn. In December 1996, regulatory authorities recommended that VISTIDE be
cleared for marketing for the treatment of CMV retinitis in all countries of the European Union. Upon
marketing clearance, Pharmacia & Upjohn will begin launching VISTIDE in Europe on a
country-by- country basis and will pay Gilead a $10 million milestone fee and royalties on product
sales. In addition, at Gilead's option, Pharmacia & Upjohn will purchase $40 million of newly issued
Gilead preferred stock at a 45 percent premium to the average closing price of Gilead's common
stock for the thirty trading days prior to receipt of European marketing clearance.
For the quarter ended March 31, 1997, Gilead recognized royalty revenue from Pharmacia &
Upjohn's sale of VISTIDE in France, pursuant to an expanded access program that has made the
product available for patients with relapsing CMV retinitis while the European marketing application
is under review. |
