|Headquarters||Foster City, California, U.S.|
|John F. Milligan (CEO), John C. Martin,
|Revenue||US $30.4 billion (2016)|
|US $13.5 billion (2016)|
Number of employees
|7,900 (2015) |
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. In 2006, Gilead acquired two companies which were developing drugs to treat patients with pulmonary diseases. The company currently produces a range of commercially available products, most notably the Hepatitis C drugs: Harvoni and Sovaldi.
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.
|Gregg Alton of Gilead Sciences & others, "The Evolution of HIV/AIDS Therapies: A Conversation", 2012, Chemical Heritage Foundation|
Gilead Sciences was founded in June 1987 by Michael L. Riordan, a medical doctor who was 29 years old at the time. Riordan graduated from Washington University, the Johns Hopkins School of Medicine and the Harvard Business School. 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. 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. 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.
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. 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. 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.
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 Isis 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 of the company. He stood down from the Board in January 2001 when appointed United States Secretary of Defense at the start of George W. Bush's first term as President. Federal disclosure forms indicate that Rumsfeld owned between US$5 million and US$25 million in Gilead stock. The rise in Gilead's share prices from US$35 to US$57 per share will have added between US$2.5 million to US$15.5 million to Rumsfeld's net worth.
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.
2000-2009: Growth through acquisition
In January 2003, Gilead completed its acquisition of Triangle Pharmaceuticals. 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. 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 November 2005, President George W. Bush urged the United States Congress to pass $7.1 billion in emergency funding to prepare for the possible bird flu pandemic, of which $1 billion is solely dedicated to the purchase, and distribution of Tamiflu.
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, 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 aeruginosaIn 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. Gilead purchased Raylo Chemicals, Inc. in November 2006 for a price of $133.3 million. 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 it's 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.
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. 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 onwards: Solvadi & Harvoni
In 2010, the company acquired CGI Pharmaceuticals for $120 million, expanding Gilead's research expertise into kinase biology and chemistry. Later in 2010 the company acquired Arresto Biosciences, Inc. for $225 million and their developmental-stage research for treating both fibrotic diseases and cancer.
In 2011, the company acquired Calistoga Pharmaceuticals for $375 million ($225 million additional plus the addition of supplementary milestone payments),the deal boosted Gileads oncology and inflammation areas. Later in the same 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 HCV treatment by giving it control of Sofosbuvir.
On July 16, 2012, the U.S. FDA approved the first drug shown to reduce the risk of HIV infection manufactured by Gilead Sciences. The pill Truvada as a preventive measure (PrEP) for people who are at high risk of getting HIV through sexual activity.
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”, Gilead Sciences was reported as the number 4 ranked drug company of 2013 by Forbes Magazine. The strong performance of Gilead in 2013 has also been linked to the FDA approval, and strong sales performance, of their “potentially revolutionary” Hepatitis-C drug Sovaldi. with US 4Q’13 sales estimated by Deutsche Bank at $53M. In 2013 the company acquired YM Biosciences, Incfor $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 Gileads oncology pipeline. The JAK enzymes have been implicated in a number of disorders including myeloproliferative diseases, inflammatory disorders and certain cancers.
On July 11, 2014, the Committee of Finance of the United States Senate launched an investigation into the pricing of the hepatitis C drug Sovaldi (sofosbuvir). This was in reaction to the high cost per pill ($1,000), which raised serious questions about the extent to which the market was operating “efficiently and rationally” for this drug. In a letter to CEO John C. Martin, Senators Ron Wyden (Chairman) and Charles E. Grassley (Member) asked Gilead to provide a series of documents to the Committee, and to answer a list of questions, in order for the Committee to get a better understanding of how the company had arrived at the price for this drug.
In 2015, the company made a trio of acquisitions, firstly with the $470 million purchase of Phenex Pharmaceuticals and there Farnesoid X Receptor (FXR) program, which consists of utilising small molecule FXR agonists in the treatment of liver diseases such as nonalcoholic steatohepatitis The second company to be acquired was EpiTherapeutics for $65 million. This acquisition will give Gilead first-in-class small molecule inhibitors of histone demethylases involved in regulating gene transcription in cancer. The final and most expensive acquisition of the year was for Galapagos NV giving Gilead access to experimental anti-inflammatory drug filgotinib which is planned to treat rheumatoid arthritis, ulcerative colitis, and Crohn's disease.
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
The following is an illustration of the company's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):
Board of directors
Gilead's Executive Committee is responsible for making the critical decisions that determine the company's future. Its members include:
|John F. Milligan, PhD||President and Chief Executive Officer|
|Norbert W. Bischofberger, PhD||Executive Vice President, Research and Development and Chief Scientific Officer|
|Robin L. Washington, MBA||Executive Vice President and Chief Financial Officer|
|John McHutchison, MD||Executive Vice President, Clinical Research|
|Gregg H. Alton, JD||Executive Vice President, Corporate and Medical Affairs|
|Paul Carter||Executive Vice President, Commercial Operations|
|William A. Lee , PhD||Executive Vice President, Head of Antiviral Therapeutics|
|James R. Meyers||Senior Vice President, Commercial Operations, North America|
|Taiyin Yang, PhD||Executive Vice President, Pharmaceutical Development and Manufacturing|
|Andrew Cheng, MD, PhD||Executive Vice President, Clinical Research and Development Operations|
|Katie L. Watson||Executive Vice President, Human Resources|
Gilead has 21 products on the market.
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- Engineering Awards  1996
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-  page 37
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- Schwartz, Nelson D. (2005-10-31). "Rumsfeld's growing stake in Tamiflu". CNN. Retrieved 2007-06-03.
- "Gilead Sciences to Acquire Triangle Pharmaceuticals for $464 Million" (Press release). Gilead Sciences. 2004-12-04. Retrieved 2007-08-15.
- "ClinicalTrials.gov - Information on Clinical Trials and Human Research Studies: Darusentan". Retrieved 2007-08-18.
- Pollack, Andrew (2006-07-13). "F.D.A. Backs AIDS Pill to Be Taken Once a Day". New York Times. Retrieved 2007-09-20.
- "U.S. Food And Drug Administration (FDA) Approves Atripla" (Press release). Gilead Sciences and Bristol-Myers Squibb. 2006-07-12. Retrieved 2007-12-15.
- "Gilead Sciences Completes Acquisition of Raylo Chemicals Inc." (Press release). Gilead Sciences. 2006-11-03. Retrieved 2007-06-07.
- "Parion Sciences and Gilead Sciences Sign Agreement to Advance Drug Candidates for Pulmonary Disease" (Press release). Gilead Sciences. 2007-08-15. Retrieved 2007-08-15.
- Reuters, via the New York Times. 12 March 2009. Gilead, a White Knight, to Buy CV Therapeutics
- "Gilead Sciences to Acquire Arresto Biosciences for $225 Million; Deal Adds Pipeline Candidates for Fibrotic Diseases" (Press release). Gilead Sciences. 2010-12-20. Retrieved 2011-01-15.
- "Gilead Sciences to Acquire Calistoga Pharmaceuticals for $375 Million; Deal Adds Pipeline Candidates in Oncology and Inflammation --" (Press release). Gilead Sciences. 2011-02-22. Retrieved 2011-02-22.
- Perrone, Matthew. "FDA approves first pill to help prevent HIV". Today Health. NBC News. Retrieved 16 July 2012.
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- "Stocks to Watch". Barrons. January 2, 2014.
- "Q4 Sovaldi Sales Tracking at $53 Million". Street Insider. January 3, 2014.
- Sanger-katz, Margot (2014-08-02). "Critics Raise Concerns About Sovaldi". The New York Times. ISSN 0362-4331. Retrieved 2015-10-04.
- "Gilead to Acquire Phenex's FXR Program for Up-to-$470M". GEN.
- "Gilead Boosts Cancer Pipeline With $65M EpiTherapeutics Buy". GEN.
- Taqi, Hadia. "How Gilead Sciences M&A Can Pan Out Next Year". www.bidnessetc.com. Bidnessetc. Retrieved 31 December 2015.
- N/A, Zack's Market Research. "Gilead (GILD) Collaborates with Galapagos for Filgotinib". Yahoo Finance. Yahoo/Zack's. Retrieved 31 December 2015.
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- "Gilead Sciences: Nimbus Drug Acquired, Offering Cure For Fatty Liver". Parent Herald.
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