Gilead Sciences Announces Fourth Quarter and Full Year 2012 Financial Results

  Gilead Sciences Announces Fourth Quarter and Full Year 2012 Financial
  Results

- Fourth Quarter Product Sales of $2.51 billion, Up 18 percent Year over Year
                                      -

  - Full Year 2012 Product Sales of $9.40 billion, Up 16 percent over 2011 -

           - Full Year 2012 Operating Cash Flows of $3.19 billion -

Business Wire

FOSTER CITY, Calif. -- February 4, 2013

Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results of operations
for the fourth quarter and full year 2012. Total revenues for the fourth
quarter of 2012 increased 18 percent to $2.59 billion, from $2.20 billion for
the fourth quarter of 2011. Net income for the fourth quarter of 2012 was
$762.5 million, or $0.47 per diluted share compared to $665.1 million, or
$0.43 per diluted share for the fourth quarter of 2011. Non-GAAP net income
for the fourth quarter of 2012, which excludes acquisition-related,
restructuring and stock-based compensation expenses, was $823.4 million, or
$0.50 per diluted share compared to $743.1 million, or $0.49 per diluted share
for the fourth quarter of 2011. All earnings per share and share have been
adjusted to reflect the two-for-one stock split that became effective on
January 25, 2013.

Full year 2012 total revenues were $9.70 billion, up 16 percent compared to
$8.39 billion for 2011. Net income for 2012 was $2.59 billion, or $1.64 per
diluted share, compared to $2.80 billion, or $1.77 per diluted share for 2011.
Non-GAAP net income for 2012, which excludes acquisition-related,
restructuring and stock-based compensation expenses, was $3.08 billion, or
$1.95 per diluted share, compared to $3.04 billion, or $1.93 per diluted share
for 2011.

Product Sales

Product sales increased 18 percent to $2.51 billion for the fourth quarter of
2012 compared to $2.13 billion for the fourth quarter of 2011. For 2012,
product sales increased 16 percent to $9.40 billion compared to $8.10 billion
in 2011. The increase in product sales was due primarily to Gilead's antiviral
franchise, resulting from increased sales of Complera^®/Eviplera^®
(emtricitabine 200 mg/rilpivirine 25 mg/tenofovir disoproxil fumarate 300 mg),
Atripla^® (efavirenz 600 mg/emtricitabine 200 mg/tenofovir disoproxil fumarate
300 mg) and Truvada^® (emtricitabine 200 mg/tenofovir disoproxil fumarate 300
mg) as well as the launch of Stribild^® (elvitegravir 150 mg/cobicistat 150
mg/emtricitabine 200 mg/tenofovir disoproxil fumarate 300 mg).

Antiviral Franchise

Antiviral product sales increased 17 percent to $2.17 billion for the fourth
quarter of 2012, up from $1.86 billion for the fourth quarter of 2011,
reflecting sales growth of 20 percent in the U.S. and 9 percent in Europe. For
2012, antiviral product sales increased 15 percent to $8.14 billion from $7.05
billion in 2011, reflecting sales growth of 21 percent in the U.S. and 6
percent in Europe.

  *Atripla
    Sales of Atripla increased 6 percent to $917.5 million for the fourth
    quarter of 2012, up from $863.3 million for the fourth quarter of 2011,
    reflecting sales growth of 6 percent in the U.S. and 5 percent in Europe.
    For 2012, Atripla sales increased 11 percent to $3.57 billion from $3.22
    billion in 2011.

  *Truvada
    Sales of Truvada increased 12 percent to $832.7 million for the fourth
    quarter of 2012, up from $746.0 million for the fourth quarter of 2011,
    reflecting sales growth of 16 percent in the U.S. and 6 percent in Europe.
    For 2012, Truvada sales increased 11 percent to $3.18 billion from $2.88
    billion in 2011.

  *Viread
    Sales of Viread^® (tenofovir disoproxil fumarate) increased 19 percent to
    $226.7 million for the fourth quarter of 2012, up from $190.9 million for
    the fourth quarter of 2011, reflecting sales growth of 25 percent in the
    U.S. and 2 percent in Europe. For 2012, Viread sales increased 15 percent
    to $848.7 million from $737.9 million in 2011.

  *Complera/Eviplera
    Sales of Complera/Eviplera grew to $117.8 million for the fourth quarter
    of 2012 compared to $19.7 million for the fourth quarter of 2011. For
    2012, Complera/Eviplera sales increased to $342.2 million from $38.7
    million in 2011. Complera was approved in the U.S. in August 2011, and
    Eviplera was approved in the European Union in November 2011.

  *Stribild
    Sales of our newest product, Stribild, which was launched in the U.S. in
    August 2012, were $40.0 million for the fourth quarter of 2012.

Cardiovascular Franchise

Cardiovascular product sales increased 33 percent to $215.2 million for the
fourth quarter of 2012, up from $162.3 million for the fourth quarter of 2011.
For 2012, cardiovascular product sales increased 28 percent to $783.0 million
from $613.4 million in 2011.

  *Letairis
    Sales of Letairis^® (ambrisentan) increased 48 percent to $116.1 million
    for the fourth quarter of 2012, up from $78.7 million for the fourth
    quarter of 2011. For 2012, Letairis sales increased 40 percent to $410.1
    million from $293.4 million in 2011.

  *Ranexa
    Sales of Ranexa^®(ranolazine) increased 19 percent to $99.1 million for
    the fourth quarter of 2012, up from $83.7 million for the fourth quarter
    of 2011. For 2012, Ranexa sales increased 17 percent to $372.9 million
    from $320.0 million in 2011.

Other Products

Sales of other products increased 15 percent to $127.7 million for the fourth
quarter of 2012 compared to $111.0 million for the fourth quarter of 2011 and
included AmBisome^® (amphotericin B) liposome for injection and Cayston^®
(aztreonam for inhalation solution). For 2012, sales of other products
increased 8 percent to $473.6 million from $439.2 million in 2011.

Royalty, Contract and Other Revenues

Royalty, contract and other revenues from collaborations were $77.5 million
for the fourth quarter of 2012, up 16 percent from $67.0 million for the
fourth quarter of 2011. For 2012, royalty, contract and other revenues were
$304.1 million, up 7 percent from $283.0 million in 2011.

Research and Development Expenses

Research and development (R&D) expenses for the fourth quarter of 2012 were
$439.7 million compared to $402.2 million for the fourth quarter of 2011.
Non-GAAP R&D expenses for the fourth quarter of 2012, which exclude
acquisition-related, restructuring and stock-based compensation expenses, were
$409.3 million compared to $349.3 million for the fourth quarter of 2011. For
2012, R&D expenses were $1.76 billion compared to $1.23 billion in 2011.
Non-GAAP R&D expenses for 2012 were $1.50 billion compared to $1.12 billion in
2011, due primarily to the continued investment in Gilead's product pipeline,
particularly in liver disease and oncology.

Selling, General and Administrative Expenses

Selling, general and administrative (SG&A) expenses for the fourth quarter of
2012 were $365.8 million compared to $346.2 million for the fourth quarter of
2011. Non-GAAP SG&A expenses for the fourth quarter of 2012, which exclude
acquisition-related, restructuring and stock-based compensation expenses, were
$332.3 million compared to $289.9 million for the fourth quarter of 2011. For
2012, SG&A expenses were $1.46 billion compared to $1.24 billion in 2011.
Non-GAAP SG&A expenses for 2012 were $1.23 billion compared to $1.09 billion
in 2011, due primarily to increased expenses to support the ongoing growth of
Gilead's business.

Interest Expense and Other Income (Expense), Net

Interest expense for the fourth quarter of 2012 was $85.9 million compared to
$75.0 million for the fourth quarter of 2011. For 2012, interest expense was
$360.9 million compared to $205.4 million in 2011. The increase was due
primarily to the additional debt issued in connection with the acquisition of
Pharmasset Inc. (Pharmasset). Other income (expense), net for the fourth
quarter of 2012 was $1.4 million compared to $26.4 million in the fourth
quarter of 2011. For 2012, other income (expense), net was a net expense of
$(37.3) million compared to income of $66.6 million in 2011. The change was
due primarily to a $40.1 million loss resulting from the Greek government's
debt restructuring and decreased interest income resulting from lower cash,
cash equivalents and marketable securities and lower yields.

Income Taxes

The effective tax rate for 2012 was 28.7 percent compared to 23.6 percent for
2011. The increase was primarily due to acquisition-related expenses which are
not tax deductible and the expiration of the federal R&D tax credit at the end
of 2011. The non-GAAP effective tax rate for 2012 was 26.8 percent compared to
24.6 percent for 2011. In January 2013, the United States Congress passed the
American Taxpayer Relief Act of 2012 which retroactively extended the federal
research tax credit. As a result, we expect that our income tax provision for
the first quarter of fiscal 2013 will include a discrete tax benefit which
will reduce our effective tax rate for the quarter and to a lesser extent, the
annual effective tax rate.

Net Foreign Currency Exchange Impact

The net foreign currency exchange impact on fourth quarter 2012 product sales
and pre-tax earnings was a favorable $12.4 million and $19.8 million,
respectively, compared to the fourth quarter of 2011. For 2012, the net
foreign currency exchange impact on product sales and pre-tax earnings was an
unfavorable $57.1 million and $22.5 million, respectively, compared to 2011.

Cash, Cash Equivalents and Marketable Securities

As of December31, 2012, Gilead had $2.58 billion of cash, cash equivalents
and marketable securities compared to $9.96 billion as of December31, 2011.
The decrease was due to the acquisition of Pharmasset in the first quarter of
2012. Gilead generated $3.19 billion of operating cash flow in 2012 including
$705.7 million generated in the fourth quarter of 2012.

Corporate Highlights

In December, Gilead's Board of Directors approved a two-for-one stock split of
the Company's outstanding common stock to be effected through a stock
dividend. Stockholders of record as of the close of business on January 7,
2013 were entitled to a stock dividend of one additional share of common stock
for every share owned. Based on the total number of shares of common stock
outstanding as of December 31, 2012, the stock split increased the total
number of shares of common stock outstanding from approximately 759,581,290 to
1,519,162,580, out of the 2,800,000,000 shares of common stock authorized. All
earnings per share and share have been adjusted to reflect the two-for-one
stock split that became effective on January 25, 2013.

Also in December, Gilead and YM BioSciences Inc. (YM) signed a definitive
agreement under which Gilead agreed to acquire YM for approximately USD $510
million. YM reported CAD $125.5 million in cash and cash equivalents as of
September 30, 2012. Gilead plans to fund the acquisition with cash on hand.
The transaction is expected to close in the first quarter of 2013.

Product and Pipeline Update

Antiviral Franchise

In November Gilead announced:

  *Interim data from the ongoing Phase 2 ELECTRON study examining a 12-week
    course of therapy with the investigational nucleotide sofosbuvir (formerly
    referred to as GS-7977), the NS5A inhibitor ledipasvir (formerly referred
    to as GS-5885) and ribavirin in patients with genotype 1 chronic hepatitis
    C virus infection. Among treatment-naïve patients receiving this
    combination, 100 percent (n=25/25) remained HCV RNA undetectable four
    weeks after completing therapy. These data were presented at the 63rd
    annual meeting of the American Association for the Study of Liver Diseases
    in Boston.
  *A Phase 3b clinical trial result from STaR (Single Tablet Regimen), the
    first head-to-head study comparing the single tablet regimens Complera and
    Atripla in treatment-naïve adults with HIV infection. Data demonstrated
    that Complera, which is marketed as Eviplera in the European Union, is
    non-inferior to Atripla based on the proportion of patients with HIV RNA
    levels (viral load) < 50 copies/mL at 48 weeks.
  *Two-year (96-week) results from two pivotal Phase 3 studies (Studies 102
    and 103) evaluating the company's newest single tablet HIV regimen,
    Stribild, among treatment-naïve patients with HIV-1 infection. Data showed
    that Stribild was non-inferior after two years of treatment to two
    standard of care HIV regimens, Atripla in Study 102 and a protease-based
    regimen of ritonavir-boosted atazanavir plus Truvada in Study 103. The
    results were presented in an oral session at the 11th International
    Congress on Drug Therapy in HIV Infection in Glasgow, United Kingdom.
  *Topline results from the Phase 3 POSITRON study examining a 12-week course
    of once-daily sofosbuvir plus ribavirin in patients with genotype 2 or 3
    chronic HCV infection who are not candidates to take interferon. The study
    found that 78 percent of patients (n=161/207) remained HCV RNA
    undetectable 12 weeks after completing therapy. The safety profile of
    sofosbuvir was similar to that observed in previous studies, and there
    were few treatment discontinuations due to adverse events.
  *The European Commission granted marketing authorization for two new
    indications for once-daily Viread. The first new indication permits the
    use of Viread in combination with other antiretroviral agents for the
    treatment of HIV-1 infected pediatric patients aged 2 to less than 18
    years with nucleoside reverse transcriptase inhibitor resistance or
    toxicities precluding the use of first line pediatric agents.
    Additionally, Viread was approved for the treatment of chronic hepatitis B
    virus infection in adolescent patients aged 12 to less than 18 years with
    compensated liver disease and evidence of immune active disease.

In October, Gilead announced:

  *A Phase 2 clinical trial evaluating tenofovir alafenamide (TAF), met its
    primary objective. TAF is an investigational novel prodrug of tenofovir
    for the treatment of HIV-1 infection formerly referred to as GS-7340. The
    ongoing study compares a once-daily single tablet regimen containing TAF
    10 mg/elvitegravir 150 mg/cobicistat 150 mg/emtricitabine 200 mg with
    Stribild among treatment-naïve adults.

Conference Call

At 4:30 p.m. Eastern Time today, Gilead's management will host a conference
call and a simultaneous webcast to discuss results from its fourth quarter and
full year 2012 as well as provide 2013 guidance and a general business update.
To access the webcast live via the internet, please connect to the company's
website at www.gilead.com 15 minutes prior to the conference call to ensure
adequate time for any software download that may be needed to hear the
webcast. Alternatively, please call 1-800-901-5231 (U.S.) or 1-617-786-2961
(international) and dial the participant passcode 49057415 to access the call.

A replay of the webcast will be archived on the company's website for one
year, and a phone replay will be available approximately two hours following
the call through February 7, 2013. To access the phone replay, please call
1-888-286-8010 (U.S.) or 1-617-801-6888 (international) and dial the
participant passcode 15606712.

About Gilead

Gilead Sciences is a biopharmaceutical company that discovers, develops and
commercializes innovative therapeutics in areas of unmet medical need. The
company's mission is to advance the care of patients suffering from
life-threatening diseases worldwide. Headquartered in Foster City, California,
Gilead has operations in North America, Europe and Asia Pacific.

Non-GAAP Financial Information

Gilead has presented certain financial information in accordance with U.S.
GAAP (GAAP) and also on a non-GAAP basis. Management believes this non-GAAP
information is useful for investors, taken in conjunction with Gilead's GAAP
financial statements, because management uses such information internally for
its operating, budgeting and financial planning purposes. Non-GAAP information
is not prepared under a comprehensive set of accounting rules and should only
be used to supplement an understanding of Gilead's operating results as
reported under U.S. GAAP. A reconciliation between GAAP and non-GAAP financial
information is provided in the table on pages 8 and 9.

Forward-looking Statements

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 of 1995. Gilead cautions readers that forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially. These risks and uncertainties include:
Gilead's ability to achieve its anticipated full year 2013 financial results;
Gilead's ability to sustain growth in revenues for its antiviral,
cardiovascular and respiratory franchises; continued fluctuations in ADAP
purchases driven by federal and state grant cycles which may not mirror
patient demand and may cause fluctuations in Gilead's earnings; the
possibility of unfavorable results from additional arms of the ELECTRON and
QUANTUM studies and subsequent clinical trials involving sofosbuvir and the
fixed-dose combination of sofosbuvir and ledipasvir; the levels of inventory
held by wholesalers and retailers which may cause fluctuations in Gilead's
earnings; Gilead's ability to submit new drug applications for new product
candidates in the timelines currently anticipated, including sofosbuvir for
the treatment of hepatitis C; Gilead's ability to receive regulatory approvals
in a timely manner or at all, for new and current products; Gilead's ability
to successfully commercialize its products, including Complera/Eviplera and
Stribild; Gilead's ability to successfully develop its respiratory,
cardiovascular and oncology/inflammation franchises; safety and efficacy data
from clinical studies may not warrant further development of Gilead's product
candidates, including sofosbuvir; the potential for additional austerity
measures in European countries that may increase the amount of discount
required on Gilead's products; fluctuations in the foreign exchange rate of
the U.S. dollar that may cause an unfavorable foreign currency exchange impact
on Gilead's future revenues and pre-tax earnings; Gilead's ability to
consummate the purchase of YM, including the risk that a governmental entity
may prohibit, delay or refuse to grant approval for the consummation of the
transaction; Gilead's ability to advance Pharmasset's or YM's product
pipeline; and other risks identified from time to time in Gilead's reports
filed with the U.S. Securities and Exchange Commission. In addition, Gilead
makes estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses and related disclosures. Gilead bases its
estimates on historical experience and on various other market-specific and
other relevant assumptions that it believes to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ significantly from these
estimates. You are urged to consider statements that include the words may,
will, would, could, should, might, believes, estimates, projects, potential,
expects, plans, anticipates, intends, continues, forecast, designed, goal, or
the negative of those words or other comparable words to be uncertain and
forward-looking. Gilead directs readers to its press releases, Quarterly
Report on Form 10-Q for the quarter ended September 30, 2012 and other
subsequent disclosure documents filed with the Securities and Exchange
Commission. Gilead claims the protection of the Safe Harbor contained in the
Private Securities Litigation Reform Act of 1995 for forward-looking
statements. All forward-looking statements are based on information currently
available to Gilead, and Gilead assumes no obligation to update any such
forward-looking statements.

 Gilead owns or has rights to various trademarks, copyrights and trade names
 used in our business, including the following: GILEAD^®, GILEAD SCIENCES^®,
TRUVADA^®, VIREAD^®, HEPSERA^®, AMBISOME^®, EMTRIVA^®, COMPLERA^®, EVIPLERA^®,
    STRIBILD^®, VISTIDE^®, LETAIRIS^®, VOLIBRIS^®, RANEXA^®, CAYSTON^® and
                                 RAPISCAN^®.

ATRIPLA^® is a registered trademark belonging to Bristol-Myers Squibb& Gilead
                                Sciences, LLC.

     LEXISCAN^® is a registered trademark belonging to Astellas U.S. LLC.

        MACUGEN^® is a registered trademark belonging to Eyetech, Inc.

 SUSTIVA^® is a registered trademark of Bristol-Myers Squibb Pharma Company.

   TAMIFLU^® is a registered trademark belonging to Hoffmann-La Roche Inc.

For more information on Gilead Sciences, Inc., please visit www.gilead.com or
call the Gilead Public Affairs Department at 1-800-GILEAD-5 (1-800-445-3235).

                                              
GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(in thousands, except per share amounts)
                                                 
                 Three Months Ended              Twelve Months Ended
                 December 31,                    December 31,
                 2012           2011            2012           2011
Revenues:
Product sales    $ 2,510,811     $ 2,133,334     $ 9,398,371     $ 8,102,359
Royalty,
contract and     77,474         67,044         304,146        283,026     
other revenues
Total revenues   2,588,285      2,200,378      9,702,517      8,385,385   
Costs and
expenses:
Cost of goods    675,818         584,447         2,471,363       2,124,410
sold
Research and     439,659         402,236         1,759,945       1,229,151
development
Selling,
general and      365,825        346,219        1,461,034      1,241,983   
administrative
Total costs      1,481,302      1,332,902      5,692,342      4,595,544   
and expenses
Income from      1,106,983       867,476         4,010,175       3,789,841
operations
Interest         (85,906     )   (74,998     )   (360,916    )   (205,418    )
expense
Other income     1,386          26,365         (37,279     )   66,581      
(expense), net
Income before
provision for    1,022,463       818,843         3,611,980       3,651,004
income taxes
Provision for    263,504        157,084        1,038,381      861,945     
income taxes
Net income       758,959         661,759         2,573,599       2,789,059
Net loss
attributable
to               3,582          3,386          17,967         14,578      
noncontrolling
interest
Net income
attributable     $ 762,541      $ 665,145      $ 2,591,566    $ 2,803,637 
to Gilead
Net income per
share
attributable
to Gilead        $ 0.50         $ 0.44         $ 1.71         $ 1.81      
common
stockholders -
basic^(1)
Net income per
share
attributable
to Gilead        $ 0.47         $ 0.43         $ 1.64         $ 1.77      
common
stockholders -
diluted^(1)
Shares used in
per share        1,517,208      1,504,448      1,514,621      1,549,806   
calculation -
basic^(1)
Shares used in
per share        1,636,939      1,532,652      1,582,549      1,580,236   
calculation -
diluted^(1)
^(1) Net income per share and the number of shares used in the per share
calculations for all periods presented reflect the two-for-one stock split in
the form of a stock dividend declared on December 10, 2012 which took effect
on January 25, 2013.


GILEAD SCIENCES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION

(unaudited)

(in thousands, except percentages and per share amounts)
                                                
                       Three Months Ended          Twelve Months Ended
                       December 31,                December 31,
                       2012         2011          2012           2011
Cost of goods sold
reconciliation:
GAAP cost of goods     $ 675,818     $ 584,447     $ 2,471,363     $ 2,124,410
sold
Stock-based
compensation           (977      )   (668      )   (7,061      )   (8,433      )
expenses
Acquisition
related-amortization   (15,837   )   (17,407   )   (63,346     )   (69,629     )
of purchased
intangibles
Non-GAAP cost of       $ 659,004    $ 566,372    $ 2,400,956    $ 2,046,348 
goods sold
                                                                   
Product gross margin
reconciliation:
GAAP product gross     73.2      %   72.6      %   73.8        %   73.8        %
margin
Stock-based
compensation           —             —             0.1         %   0.1         %
expenses
Acquisition
related-amortization   0.6       %   0.8       %   0.7         %   0.9         %
of purchased
intangibles
Non-GAAP product       73.8      %   73.4      %   74.5        %   74.8        %
gross margin^(1)
                                                                   
Research and
development expenses
reconciliation:
GAAP research and      $ 439,659     $ 402,236     $ 1,759,945     $ 1,229,151
development expenses
Stock-based
compensation           (24,886   )   (18,961   )   (187,100    )   (73,490     )
expenses
Restructuring          (89       )   (78       )   (7,411      )   (1,438      )
expenses
Acquisition
related-transaction    —             —             (345        )   (446        )
costs
Acquisition
related-contingent     (5,353    )   (7,286    )   (69,469     )   (8,484      )
consideration
remeasurement
Acquisition
related-IPR&D          —            (26,630   )   —              (26,630     )
Impairment
Non-GAAP research
and development        $ 409,331    $ 349,281    $ 1,495,620    $ 1,118,663 
expenses
                                                                   
Selling, general and
administrative
expenses
reconciliation:
GAAP selling,
general and            $ 365,825     $ 346,219     $ 1,461,034     $ 1,241,983
administrative
expenses
Stock-based
compensation           (31,264   )   (26,634   )   (208,501    )   (110,455    )
expenses
Restructuring          63            (1,233    )   (13,136     )   (7,287      )
expenses
Acquisition
related-transaction    (1,236    )   (28,466   )   (12,332     )   (29,744     )
costs
Acquisition
related-amortization   (1,125    )   —            (1,125      )   —           
of purchased
intangibles
Non-GAAP selling,
general and            $ 332,263    $ 289,886    $ 1,225,940    $ 1,094,497 
administrative
expenses
                                                                   
Operating margin
reconciliation:
GAAP operating         42.8      %   39.4      %   41.3        %   45.2        %
margin
Stock-based
compensation           2.2       %   2.1       %   4.2         %   2.3         %
expenses
Restructuring          0.0       %   0.1       %   0.2         %   0.1         %
expenses
Acquisition
related-transaction    0.0       %   1.3       %   0.1         %   0.4         %
costs
Acquisition
related-amortization   0.7       %   0.8       %   0.7         %   0.8         %
of purchased
intangibles
Acquisition
related-contingent     0.2       %   0.3       %   0.7         %   0.1         %
consideration
remeasurement
Acquisition
related-IPR&D          —            1.2       %   —              0.3         %
Impairment
Non-GAAP operating     45.9      %   45.2      %   47.2        %   49.2        %
margin^(1)
                                                                   
Interest expense
reconciliation:
GAAP interest          $ (85,906 )   $ (74,998 )   $ (360,916  )   $ (205,418  )
expense
Acquisition
related-transaction    —            23,817       7,333          23,817      
costs
Non-GAAP interest      $ (85,906 )   $ (51,181 )   $ (353,583  )   $ (181,601  )
expense
                                                                   
Net income
attributable to
Gilead
reconciliation:
GAAP net income
attributable to        $ 762,541     $ 665,145     $ 2,591,566     $ 2,803,637
Gilead, net of tax
Stock-based
compensation           42,423        35,303        346,705         145,053
expenses
Restructuring          101           1,010         15,038          6,579
expenses
Acquisition
related-transaction    981           12,798        14,646          14,522
costs
Acquisition
related-amortization   12,605        13,275        47,186          52,500
of purchased
intangibles
Acquisition
related-contingent     4,783         7,584         68,899          8,484
consideration
remeasurement
Acquisition
related-IPR&D          —            7,989        —              7,989       
Impairment
Non-GAAP net income
attributable to        $ 823,434    $ 743,104    $ 3,084,040    $ 3,038,764 
Gilead, net of tax
                                                                   
Diluted earnings per
share
reconciliation:
GAAP diluted           $ 0.47        $ 0.43        $ 1.64          $ 1.77
earnings per share
Stock-based
compensation           0.03          0.02          0.22            0.09
expenses
Restructuring          0.00          0.00          0.01            0.00
expenses
Acquisition
related-transaction    0.00          0.01          0.01            0.01
costs
Acquisition
related-amortization   0.01          0.01          0.03            0.03
of purchased
intangibles
Acquisition
related-contingent     0.00          0.00          0.04            0.01
consideration
remeasurement
Acquisition
related-IPR&D          —            0.01         —              0.01        
Impairment
Non-GAAP diluted
earnings per           $ 0.50       $ 0.49       $ 1.95         $ 1.93      
share^(1)
                                                                   
Shares used in per
share calculation
(diluted)^(2)
reconciliation:
GAAP shares used in
per share              1,636,939     1,532,652     1,582,549       1,580,236
calculation
(diluted)
Share impact of
current stock-based    (1,965    )   (4,266    )   (2,522      )   (4,032      )
compensation rules
Non-GAAP shares used
in per share           1,634,974    1,528,386    1,580,027      1,576,204   
calculation
(diluted)
                                                                   
Non-GAAP adjustment
summary:
Cost of goods sold     $ 16,814      $ 18,075      $ 70,407        $ 78,062
adjustments
Research and
development expenses   30,328        52,955        264,325         110,488
adjustments
Selling, general and
administrative         33,562        56,333        235,094         147,486
expenses adjustments
Interest expense       —            23,817       7,333          23,817      
adjustments
Total non-GAAP
adjustments before     80,704        151,180       577,159         359,853
tax
Income tax effect      (19,811   )   (73,221   )   (84,685     )   (124,726    )
Total non-GAAP
adjustments after      $ 60,893     $ 77,959     $ 492,474      $ 235,127   
tax
                                                                   
^(1) Amounts may not sum due to rounding
^(2) The earnings per share calculation and the number of shares used in the per
share calculation reflect the two-for-one stock split in the form of a stock
dividend declared on December 10, 2012 which took effect on January 25, 2013.


GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)
                                                      
                              December 31,                  December 31,
                              2012                          2011^(1)
                              (unaudited)
Cash, cash equivalents
and marketable                $     2,582,086               $    9,963,972
securities
Accounts receivable,          1,751,388                     1,951,167
net
Inventories                   1,744,982                     1,389,983
Property, plant and           1,100,259                     774,406
equipment, net
Intangible assets, net        11,736,393                    1,062,864
Goodwill                      1,060,919                     1,004,102
Other assets                  1,263,811                    1,156,640
Total assets                  $     21,239,838             $    17,303,134
                                                            
Current liabilities           $     4,270,020               $    2,514,790
Long-term liabilities         7,418,949                     7,920,995
Stockholders’                 9,550,869                    6,867,349
equity^(2)
Total liabilities and         $     21,239,838             $    17,303,134
stockholders’ equity

^(1) Derived from the audited consolidated financial statements as of December
31, 2011.
^(2) As of December 31, 2012, there were 1,519,163 shares of common stock
issued and outstanding. The number of common shares outstanding reflects the
two-for-one stock split in the form of a stock dividend declared on December
10, 2012 which took effect on January 25, 2013.


GILEAD SCIENCES, INC.

PRODUCT SALES SUMMARY

(unaudited)

(in thousands)
                                                
                   Three Months Ended              Twelve Months Ended
                   December 31,                    December 31,
                   2012           2011            2012           2011
Antiviral
products:
Atripla – U.S.     $ 579,979       $ 547,469       $ 2,252,655     $ 2,022,049
Atripla – Europe   281,476         267,501         1,102,570       1,042,668
Atripla – Other    56,031         48,345         219,258        159,801
International
                   917,486        863,315        3,574,483      3,224,518
                                                                   
Truvada – U.S.     431,715         373,574         1,612,506       1,385,411
Truvada – Europe   334,907         316,953         1,315,533       1,257,265
Truvada – Other    66,102         55,475         253,071        232,465
International
                   832,724        746,002        3,181,110      2,875,141
                                                                   
Viread – U.S.      105,192         84,321          387,929         324,741
Viread – Europe    84,585          83,250          335,540         328,312
Viread – Other     36,904         23,297         125,228        84,814
International
                   226,681        190,868        848,697        737,867
                                                                   
Complera /         84,328          19,463          280,070         38,507
Eviplera – U.S.
Complera /
Eviplera –         27,932          85              52,703          85
Europe
Complera /
Eviplera – Other   5,554          155            9,427          155
International
                   117,814        19,703         342,200        38,747
                                                                   
Stribild – U.S.    40,022          —               57,533          —
Stribild – Other   3              —              3              —
International
                   40,025         —              57,536         —
                                                                   
Hepsera – U.S.     9,766           14,450          43,362          57,259
Hepsera – Europe   12,907          14,845          54,291          75,138
Hepsera – Other    2,835          3,001          10,662         12,282
International
                   25,508         32,296         108,315        144,679
                                                                   
Emtriva – U.S.     4,951           4,734           18,531          17,216
Emtriva – Europe   1,544           1,698           6,713           6,860
Emtriva – Other    1,135          1,357          4,205          4,688
International
                   7,630          7,789          29,449         28,764
                                                                   
Total Antiviral    1,255,953       1,044,011       4,652,586       3,845,183
products – U.S.
Total Antiviral
products –         743,351         684,332         2,867,350       2,710,328
Europe
Total Antiviral
products – Other   168,564        131,630        621,854        494,205
International
                   2,167,868      1,859,973      8,141,790      7,049,716
                                                                   
Letairis           116,078         78,661          410,054         293,426
Ranexa             99,127          83,651          372,949         320,004
AmBisome           90,781          80,784          346,646         330,156
Other products     36,957         30,265         126,932        109,057
                   342,943        273,361        1,256,581      1,052,643
                                                                   
Total product      $ 2,510,811    $ 2,133,334    $ 9,398,371    $ 8,102,359
sales

Contact:

Gilead Sciences, Inc.
Robin Washington, 650-522-5688 (Investors)
Patrick O'Brien, 650-522-1936 (Investors)
Amy Flood, 650-522-5643 (Media)