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Gilead Sciences

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Gilead Sciences, Inc.
Company typePublic
IndustryPharmaceutics
Biotechnology
Founded1987; 37 years ago (1987)
HeadquartersFoster City, California, U.S.
Area served
Worldwide
Key people
Products
RevenueDecrease US$22.127 billion (2018)[2]
Decrease US$8.2 billion (2018)[2]
Increase US$5.455 billion (2018)[2]
Total assetsDecrease US$63.675 billion (2018)[2]
Total equityIncrease US$21.534 billion (2018)[2]
Number of employees
~10,000 (January 2018)[2]

Gilead Sciences, Inc., commonly known as Gilead Sciences or Gilead (also styled GILEAD) /ˈɡɪliəd/, is an American biotechnology company that researches, develops and commercializes drugs. The company focuses primarily on antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.

Headquartered and founded in Foster City, California, Gilead is a member of the NASDAQ Biotechnology Index and the S&P 500.

History

Foundation

External videos
video icon Gregg Alton of Gilead Sciences & others, "The Evolution of HIV/AIDS Therapies: A Conversation", 2012, Chemical Heritage Foundation via Vimeo

Gilead Sciences was founded in June 1987 by Michael L. Riordan, a medical doctor who was 29 years old at the time.[3] Riordan graduated from Washington University in St. Louis, the Johns Hopkins School of Medicine and the Harvard Business School.[4] Three core scientific advisers worked with Riordan to create the company and establish its scientific vision. These were Peter Dervan of Caltech, Doug Melton of Harvard, and Harold Weintraub of the Fred Hutchinson Cancer Research Center. Riordan served as CEO from inception until 1996.[5][6] Menlo Ventures, a venture capital firm where Riordan worked for a year, made the first investment in Gilead, of $2 million, and Menlo's partner DuBose Montgomery served as Chairman of the Board until 1993, when Riordan became Chairman.[3] Riordan also recruited as scientific advisers Harold Varmus, a Nobel laureate who later became Director of the National Institutes of Health, and Jack Szostak, recipient of the Nobel Prize for Physiology or Medicine in 2009.[7][8]

The company's primary therapeutic focus was, and continues to be, in antiviral medicines, a field that interested Riordan because he contracted dengue fever, an untreatable viral disease, while working in malnutrition clinics as a Henry Luce Scholar in the Philippines.[9] Riordan recruited Donald Rumsfeld to join the board of directors in 1988, followed by Benno C. Schmidt, Sr., Gordon Moore, and George P. Shultz. Riordan tried to recruit Warren Buffett as an investor and board member, but was unsuccessful.[citation needed]

Under the technical leadership of scientist Dr. Mark Matteucci, the company focused its early discovery research on making small strands of DNA (oligomers) to assess the potential of genetic code blockers (gene therapy). Its development of small molecule antiviral therapeutics began in 1991 when CEO Riordan and R&D head John C. Martin in-licensed a group of nucleotide compounds discovered in two European academic labs; one of the compounds was tenofovir, a pro-drug of which, trade named Viread, became one of the most widely used anti-retroviral drugs.[citation needed]

1990-1999: IPO

In 1990, Gilead entered into a collaborative research agreement with Glaxo for the research and development of genetic code blockers, also known as antisense. This collaboration was terminated in 1998, and Gilead's antisense intellectual property portfolio was sold to Ionis Pharmaceuticals. Gilead debuted on the NASDAQ in January 1992. Its initial public offering raised $86.25 million in proceeds.

In June 1996, Gilead launched Vistide (cidofovir injection) for the treatment of cytomegalovirus (CMV) retinitis in patients with AIDS. The company cooperated with Pharmacia & Upjohn to market the product outside the United States.

In January 1997, Donald Rumsfeld, a Board member since 1988, was appointed Chairman,[10] but left the Board in January 2001 when appointed United States Secretary of Defense at the start of George W. Bush's first term as President.

In March 1999, Gilead acquired NeXstar Pharmaceuticals of Boulder, Colorado following two years of negotiations with the company. At the time, NeXstar's annual sales of $130 million was three times Gilead's sales. NeXstar's two revenue-generating drugs were AmBisome, an injectable fungal treatment, and DaunoXome, an oncology drug taken by HIV patients. Also in 1999, Roche announced first approval of Tamiflu (oseltamivir) for the treatment of influenza. Tamiflu was originally discovered by Gilead and licensed to Roche for late-phase development and marketing. Viread (tenofovir) achieved first approval in 2001 for the treatment of HIV.

2000 to 2009

In 2002 Gilead changed its corporate strategy to focus only on antivirals, and sold its cancer assets to OSI Pharmaceuticals for $200 million.[11]

In December 2002, Gilead and Triangle Pharmaceuticals announced that Gilead would acquire Triangle for around $464 million; Triangle's lead drug was emtricitabine that was near FDA approval, and it had two other antivirals in its pipeline.[11][12] The company also announced its first full year of profitability. Later that year Hepsera (adefovir) was approved for the treatment of chronic hepatitis B, and Emtriva (emtricitabine) for the treatment of HIV.

In 2004, Gilead launched Truvada, a fixed-dose combination of tenofovir and emtricitabine.

In 2006, Gilead completed two acquisitions that allowed the company to branch out from its historical antiviral franchise into the cardiovascular and respiratory therapeutic arenas. Under an agreement with GlaxoSmithKline, Myogen marketed Flolan (epoprostenol sodium) in the United States for the treatment of primary pulmonary hypertension. Additionally, Myogen was developing (in Phase 3 studies) darusentan,[13] also an endothelin receptor antagonist, for the potential treatment of resistant hypertension.

In 2006, the company acquired Corus Pharma, Inc. for $365 million. 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 July 2006, the U.S. Food and Drug Administration (FDA) approved Atripla, a once a day single tablet regimen for HIV, combining Sustiva (efavirenz), a Bristol-Myers Squibb product, and Truvada (emtricitabine and tenofovir disoproxil), a Gilead product.[14][15] Gilead purchased Raylo Chemicals, Inc. in November 2006 for a price of $133.3 million.[16] Raylo Chemical, based in Edmonton, Alberta, was a wholly owned subsidiary of Degussa AG, a German company. Raylo Chemical was a custom manufacturer of active pharmaceutical ingredients and advanced intermediates for the pharmaceutical and biopharmaceutical industries. Later in the same year Gilead acquired Myogen, Inc. for $2.5 billion (then its largest acquisition). With two drugs in development (ambrisentan and darusentan), and one marketed product (Flolan) for pulmonary diseases, the acquisition of Myogen has solidified Gilead's position in this therapeutic arena.

Gilead expanded its move into respiratory therapeutics in 2007 by entering into a licensing agreement with Parion for an epithelial sodium channel inhibitor for the treatment of pulmonary diseases, including cystic fibrosis, chronic obstructive pulmonary disease and bronchiectasis.[17]

In 2009, the company acquired CV Therapeutics, Inc. for $1.4 billion, bringing Ranexa and Lexiscan into Gilead. Ranexa is a cardiovascular drug used to treat chest pain related to coronary artery disease, with both of these products and pipeline building out Gilead's cardiovascular franchise.[18] Later, in the same year the company received the award for one of the Fastest Growing Companies by Fortune. In the same year they were also named as one America's Top Companies to work for by Forbes.

2010 to 2019

In 2010, the company acquired CGI Pharmaceuticals for $120 million, expanding Gilead's research expertise into kinase biology and chemistry. Later that year, the company acquired Arresto Biosciences, Inc. for $225 million, obtaining developmental-stage research for treating fibrotic diseases and cancer.[19]

In 2011, the company acquired Calistoga Pharmaceuticals for $375 million ($225 million plus milestone payments). The acquisition boosted Gilead's oncology and inflammation areas.[20] Later that year, Gilead made its most important acquisition — and most expensive to date — with the $10.4 billion purchase of Pharmasset, Inc. This transaction helped cement Gilead as the leader in treatment of the hepatitis C virus by giving it control of sofosbuvir (see below).

On July 16, 2012, the FDA approved Gilead's Truvada for prevention of HIV infection (it was already approved for treating HIV). The pill was a preventive measure (PrEP) for people at high risk of getting HIV through sexual activity.[21]

In 2013, the company acquired YM Biosciences, Inc. for $510 million. The acquisition brings drug candidate CYT387, an orally-administered, once-daily, selective inhibitor of the Janus kinase (JAK) family, specifically JAK1 and JAK2, into Gilead's oncology pipeline. The JAK enzymes have been implicated in myeloproliferative diseases, inflammatory disorders, and certain cancers.

In 2015, the company made a trio of acquisitions:

  • It bought Phenex Pharmaceuticals for $470 million. Its Farnesoid X Receptor (FXR) program used small-molecule FXR agonists in the treatment of liver diseases such as nonalcoholic steatohepatitis.[22]
  • It bought EpiTherapeutics for $65 million. This acquisition gave Gilead first-in-class small molecule inhibitors of histone demethylases involved in regulating gene transcription in cancer.[23]
  • It paid $425 million for a 15% equity stake in Galapagos NV, with additional payments for Gilead to license the experimental anti-inflammatory drug filgotinib, which may treat rheumatoid arthritis, ulcerative colitis, and Crohn's disease.[24]

In 2016, the company acquired Nimbus Apollo, Inc. for $400 million, giving Gilead control of 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.[25][26] Also in 2016, the company was named the most generous company on the 2016 Fortune list of The Most Generous Companies of the Fortune 500. Charitable donations to HIV/AIDS and liver disease organizations totaled over 440 million in 2015.[27]

In August 2017, the company announced it would acquire Kite Pharma for $11.9 billion,[28] equating to $180 cash per share, a 29% premium over the closing price of the shares. The deal will add the promising CAR-T candidate to the companys existing portfolio.[29] In November, the company announced it will acquire Cell Design Labs for up to $567 million, after it indirectly acquired a stake of 12.2% via the Kite Pharma deal.[30]

Sovaldi and Harvoni

The drug sofosbuvir had been part of the 2011 acquisition of Pharmasset. In 2013, the FDA approved this drug, under the trade name Sovaldi, as a treatment for the hepatitis C virus. Forbes magazine ranked Gilead its number 4 drug company, citing a market capitalization of US$113 billion and stock appreciation of 100%, and describing their 2011 purchase of Pharmasset for $11 billion as “one of the best pharma acquisitions ever”.[31] Deutsche Bank estimated Sovaldi sales in the year's final quarter would be $53 million,[32] and Barron's noted the FDA approval and subsequent strong sales of the “potentially revolutionary” drug as a positive indicator for the stock.[33]

On July 11, 2014, the United States Senate Committee on Finance investigated Sovaldi's high price ($1,000 per pill; $84,000 for the full 12-week regimen). Senators questioned the extent to which the market was operating “efficiently and rationally”, and committee chairman Ron Wyden (D-Oregon) and ranking minority member Chuck Grassley (R-Iowa) wrote to CEO John C. Martin asking Gilead to justify the price for this drug.[34] The committee hearings did not result in new law, but in 2014 and 2015, due to negotiated and mandated discounts, Sovaldi was sold well below the list price.[35] For poorer countries, Gilead licensed multiple companies to produce generic versions of Sovaldi; in India, a pill's price was as low as $4.29.[36]

Gilead later combined Sovaldi with other antivirals in single-pill combinations. First, Sovaldi was combined with ledipasvir and marketed as Harvoni. This treatment for hepatitis C cures the patient in 94% to 99% of cases (HCV genotype 1).[37] By 2017, Gilead was reporting drastic drops in Sovaldi revenue from year to year, not only because of pricing pressure but because the number of suitable patients decreased.[38] Later single-pill combinations were Epclusa (with velpatasvir) and Vosevi (with velpatasvir and voxilaprevir).

Finances

For the fiscal year 2017, Gilead Sciences Insurance reported earnings of US$4.628 billion, with an annual revenue of US$26.107 billion, a decline of 14.1% over the previous fiscal cycle. Gilead Sciences's shares traded at over $70 per share, and its market capitalization was valued at US$93.4 billion in October 2018.[39]

Year Revenue
in mil. USD$ 		Net income
in mil. USD$ 		Total Assets
in mil. USD$ 		Price per Share
in USD$ 		Employees
2005 2,028 814 3,766 9.77
2006 3,026 −1,190 4,086 14.31
2007 4,230 1,585 5,835 18.30
2008 5,336 1,979 6,937 22.74
2009 7,011 2,636 9,699 21.32
2010 7,949 2,901 11,593 18.15
2011 8,385 2,804 17,303 18.46
2012 9,702 2,592 21,240 26.13
2013 11,202 3,075 22,579 51.83 6,000
2014 24,890 12,101 34,664 82.82 7,000
2015 32,639 18,108 51,716 98.83 8,000
2016 30,390 13,501 56,977 78.87 9,000
2017 26,107 4,628 70,283 70.13 10,000
2018 22,127 5,455 63,675 63.86 11,000[40]

Prospects for the future

As of 2017, Gilead's challenge is to develop or acquire new blockbuster drugs before its current revenue-producers wane or their patent protection expires. Like other pharmaceutical companies, it stands to gain from efforts by U.S. President Donald Trump to repeal taxes imposed by the Affordable Care Act (ACA). However, Gilead also benefitted from the expansion of Medicaid in the ACA; Leerink analyst Geoffrey Porges wrote that Gilead's HIV drugs could face funding pressure under reform proposals.[41] Gilead has $32 billion in cash, but $27.4 billion is outside the U.S. and is unavailable for acquisitions unless Gilead pays U.S. tax on it, though it could borrow against it.[42] Gilead would benefit from proposals to let companies repatriate offshore capital with minimal further taxation.[43]

Gilead's Entospletinib has shown a 90% cr rate for MLL type AML.</ref>{{Cite web|url=http://www.bloodjournal.org/content/128/22/2831?sso-checked=true |title=Interim Results of a Phase 1b/2 Study of Entospletinib (GS-9973) Monotherapy and in Combination with Chemotherapy in Patients with Acute Myeloid Leukemia |author=Alison R. Walker|publisher=Blood Journal|date=January 1, 2016

Tax structures

On December 26, 2018, The Times reported that Gilead had used the Double Irish arrangement to avoid U.S. corporate taxes on non–U.S. profits, reporting that "A US pharmaceutical firm used a controversial tax loophole arrangement to shift almost €20 billion in profits through an Irish entity in just two years".[44]

Acquisition history

Illustration of the company's mergers, acquisitions and historical predecessors
Gilead Sciences

Gilead Sciences

NeXstar Pharmaceuticals
(Acq 1999

Triangle Pharmaceuticals
(Acq 2003)

Myogen, Inc.
(Acq 2006)

Corus Pharma, Inc
(Acq 2006)

Raylo Chemicals
(Acq 2006)

CV Therapeutics, Inc.
(Acq 2009)

CGI Pharmaceuticals
(Acq 2010)

Calistoga Pharmaceuticals (Acq 2011)

Pharmasset Inc
(Acq 2011)

Phenex Pharmaceuticals
(Acq 2015)

EpiTherapeutics
(Acq 2015)

Galapagos NV
(Acq 2015)

Nimbus Apollo, Inc.
(Acq 2016)

Kite Pharma
(Acq 2017)

Cell Design Labs
(Acq 2017)

See also

References

  1. ^ "Gilead Sciences, Inc. Form 8-K". U.S. Securities and Exchange Commission. December 2018.
  2. ^ a b c d e f g "Gilead Sciences, Inc. 2018 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. March 2019.
  3. ^ a b "History of Gilead Sciences, Inc. – FundingUniverse". fundinguniverse.com.
  4. ^ "1996 Alumni Achievement Awards". Washington University in St. Louis. Archived from the original on August 21, 2014.
  5. ^ Moukheiber, Kerry A. Dolan Zina. "The Golden Age of Antiviral Drugs". Forbes. Retrieved December 14, 2017.
  6. ^ "Gilead Sciences Board Resolution Michael Riordan Founder CEO Chairman Antiviral Medicine AIDS Therapeutics Nucleotides". Scribd. Retrieved December 14, 2017.
  7. ^ "Harold E. Varmus, M.D." National Institutes of Health (NIH). August 6, 2015. Retrieved February 25, 2019.
  8. ^ "The Nobel Prize in Physiology or Medicine 2009". NobelPrize.org. Retrieved February 25, 2019.
  9. ^ Moukheiber, Zina; Dolan, Kerry A. (October 27, 2003). "The Golden Age of Antiviral Drugs". Forbes.
  10. ^ "Donald H. Rumsfeld Named Chairman of Gilead Sciences" (Press release). Gilead Sciences. January 3, 1997. Archived from the original on June 19, 2007. Retrieved June 3, 2007. {{cite press release}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  11. ^ a b Gellene, Denise (December 5, 2002). "Gilead Sciences to Buy Triangle Pharmaceuticals". Los Angeles Times.
  12. ^ "Gilead to Pay $464 Million For Triangle Pharmaceuticals". Wall Street Journal. December 4, 2002.
  13. ^ "ClinicalTrials.gov - Information on Clinical Trials and Human Research Studies: Darusentan". Retrieved August 18, 2007.
  14. ^ Pollack, Andrew (July 13, 2006). "F.D.A. Backs AIDS Pill to Be Taken Once a Day". New York Times. Retrieved September 20, 2007.
  15. ^ "U.S. Food And Drug Administration (FDA) Approves Atripla" (Press release). Gilead Sciences and Bristol-Myers Squibb. July 12, 2006. Retrieved December 15, 2007.
  16. ^ "Gilead Sciences Completes Acquisition of Raylo Chemicals Inc" (Press release). Gilead Sciences. November 3, 2006. Retrieved June 7, 2007.
  17. ^ "Parion Sciences and Gilead Sciences Sign Agreement to Advance Drug Candidates for Pulmonary Disease" (Press release). Gilead Sciences. August 15, 2007. Retrieved August 15, 2007.
  18. ^ Reuters, via the New York Times. March 12, 2009. Gilead, a White Knight, to Buy CV Therapeutics
  19. ^ "Gilead Sciences to Acquire Arresto Biosciences for $225 Million; Deal Adds Pipeline Candidates for Fibrotic Diseases" (Press release). Gilead Sciences. December 20, 2010. Retrieved January 15, 2011.
  20. ^ "Gilead Sciences to Acquire Calistoga Pharmaceuticals for $375 Million; Deal Adds Pipeline Candidates in Oncology and Inflammation --" (Press release). Gilead Sciences. February 22, 2011. Retrieved February 22, 2011.
  21. ^ Perrone, Matthew. "FDA approves first pill to help prevent HIV". Today Health. NBC News. Retrieved July 16, 2012.
  22. ^ "Gilead to Acquire Phenex's FXR Program for Up-to-$470M". GEN.
  23. ^ "Gilead Boosts Cancer Pipeline With $65M EpiTherapeutics Buy". GEN.
  24. ^ N/A, Zack's Market Research. "Gilead (GILD) Collaborates with Galapagos for Filgotinib". Yahoo Finance. Yahoo/Zack's. Retrieved December 31, 2015.
  25. ^ "Gilead - Investors - News Release".
  26. ^ "Gilead Sciences: Nimbus Drug Acquired, Offering Cure For Fatty Liver". Parent Herald.
  27. ^ "The Giving 20: The Most Generous Companies in America". Fortune. Retrieved December 14, 2017.
  28. ^ "Gilead to buy Kite for promising cancer therapies in $12 billion deal". reuters.com. August 28, 2017.
  29. ^ "Growth-hungry Gilead finally pivots from flagging hep C with $12B Kite buy". fiercepharma.com. August 28, 2017. Retrieved August 29, 2017.
  30. ^ "Gilead to buy Cell Design Labs for up to $567 million". reuters.com. December 7, 2017.
  31. ^ "Grading Pharma in 2013". Forbes. December 31, 2013.
  32. ^ "Q4 Sovaldi Sales Tracking at $53 Million". Street Insider. January 3, 2014.
  33. ^ "Stocks to Watch". Barrons. January 2, 2014.
  34. ^ Sanger-katz, Margot (August 2, 2014). "Critics Raise Concerns About Sovaldi". The New York Times. ISSN 0362-4331. Retrieved October 4, 2015.
  35. ^ "Gilead Q4 2014 Earnings Call".
  36. ^ Ketaki Gokhale (December 28, 2015). "The same pill that cost $1,000 in the U.S. sold for $4 in India". Bloomberg.
  37. ^ Keating GM (2015). "Ledipasvir/Sofosbuvir: a review of its use in chronic hepatitis C". Drugs. 75 (6): 675–85. doi:10.1007/s40265-015-0381-2. PMID 25837989.
  38. ^ Michael Douglass (March 9, 2017). "I Was Wrong About Gilead Sciences". The Motley Fool.
  39. ^ "Gilead Sciences Revenue 2006-2018 | GILD". www.macrotrends.net. Retrieved November 1, 2018.
  40. ^ "Mission & Core Values - Gilead". www.gilead.com.
  41. ^ Allison Gatlin (April 6, 2017). "Will Gilead's HIV Franchise Plan Be Dashed On TrumpCare?". Investors Business Daily.
  42. ^ Ben Levisohn (March 13, 2017). "Gilead Sciences: Is an Incyte Deal 'Reasonable'?". Barron's.
  43. ^ Ioannis Stamatopoulos (February 12, 2017). "Pharma M&A In 2017: The Most Likely Deal Hunters". Seeking Alpha. Retrieved March 12, 2017.
  44. ^ Paul O'Donoghue (December 26, 2018). "US pharma giant Gilead uses 'Double Irish' tax loophole". The Times. London.

External links

Media related to Gilead Sciences at Wikimedia Commons

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