190 likes | 270 Views
Biotechnology 2. Kurt Wilkinson • Melody Wang • Jesse Yang • Si Shen. Outline . Background Current News Ratios Future Growth. Background. Incorporated 1987 in Delaware Headquartered in Foster City, CA Operations in Europe, North America and Asia Pacific 5,000 Employees. Background.
E N D
Biotechnology 2 Kurt Wilkinson • Melody Wang • Jesse Yang • Si Shen
Outline • Background • Current News • Ratios • Future Growth
Background • Incorporated 1987 in Delaware • Headquartered in Foster City, CA • Operations in Europe, North America and Asia Pacific • 5,000 Employees
Background • Focuses on antiviral drugs • HIV treatment • Hepatitis A/B • Hepatitis C • Also produces treatment for metabolic and respiratory conditions
Background - Products HIV/AIDS • Atripla • Truvada • Viread • Complera/Eviplera • Emtriva LIVER DISEASE • Viread • Hepsera • CARDIOVASCULAR • Letairis • Ranexa • Lexiscan/Rapiscan • RESPIRATORY • Cayston • Tamiflu • OTHER • AmBisome • Vistide • Macugen
Background • Named one of the fastest growing companies by Fortune in 2009 • Named one of America’s best companies to work for by Forbes in 2009 • Supplies 1/3 of the HIV medication used in the developing world
Mergers and Acquisitions • 1999: Nexstar Pharmaceuticals • 2003: Triangle Pharmaceuticals • 2006: Corus Pharma, Inc • 2006: Myogen, Inc • 2006: Raylo Chemicals, Inc. • 2007: Nycomedfr. Altana – Cork • 2009: CV Therapeutics, Inc • 2010: CGI Pharmaceuticals • 2010: Arresto Biosciences, Inc • 2011: Carlistoga Pharmaceuticals • 2012: Pharmasset
Subsidiaries • Gilead Sciences GmbH Germany • Gilead Sciences Hellas EPE Greece • Gilead Sciences Holding, LLC United States • Gilead Sciences Hong Kong Limited Hong Kong • Gilead Sciences International Ltd. United Kingdom • Gilead Sciences Korea Limited South Korea • Gilead Sciences Lda. Portugal • Gilead Sciences Limited Ireland • Gilead Sciences llacTicaret Limited Sireketi Turkey • Gilead Sciences Ltd. United Kingdom • Gilead Sciences Luxembourg S.a.r.l. Luxembourg • Gilead Sciences Netherlands BV Netherlands • Gilead Sciences Norway AS Norway • Gilead Sciences Poland Sp. Z o.o Poland • Gilead Sciences Pty Limited Australia • Gilead Sciences S.L. Spain • Gilead Sciences S.r.l. Italy • Gilead Sciences SAS France • Gilead Sciences Sweden AB Sweden • Gilead Sciences Switzerland Sarl Switzerland • Pharmasset UK Limited United Kingdom • Tri-Supply Limited Ireland • Bristol-Myers Squibb and Gilead Sciences Limited Ireland • Bristol-Myers Squibb & Gilead Sciences, LLC United States • Gilead Alberta ULC Canada • Gilead Alberta, LLC United States • Gilead Biologics, Inc. United States • Gilead Biopharmaceutics Ireland Corporation Ireland • Gilead Calistoga, LLC United States • Gilead Colorado, Inc. United States • Gilead Connecticut, Inc. United States • Gilead Holdings, LLC United States • Gilead Oncology Ireland Ltd Ireland • Gilead Palo Alto, Inc. United States • Gilead Pharmasset LLC United States • Gilead Sciences (NZ) New Zealand • Gilead Sciences Belgium BVBA Belgium • Gilead Sciences Canada, Inc. Canada • Gilead Sciences Cork Limited Ireland • Gilead Sciences Denmark ApS Denmark • Gilead Sciences Europe Ltd. United Kingdom • Gilead Sciences Finland Oy Finland • Gilead Sciences GesmbH. Austria
Current News – Hepatitis C Treatment Hepatitis C drug “sofosbuvir” awaiting FDA approval • Acquired Pharmasset for $11.2 billion in 2012, which already had extensive R&D in Hepatitis C • Pharmasset’s market price increased by 278% from 2007 to 2011 due to the value of their R&D • Sofosbuvir already passed four Phase III trials • No vaccine currently available, easier to administer, fewer side-effects than other treatments • Hepatitis C drug could generate as much as $3.8 billion in sales per year by 2020 (Bloomberg)
Ratios: Profitability/Market * Due to a stock split in January, the weighted average shares outstanding is not accurate
Other – R&D as a % of Revenue • Generally, a low ratio means good returns on research and development expenses. • However, if too low, the company may not be investing enough in R&D for future sales.
Future Growth • Shares rose by 79% in 2012 (Bloomberg) • 26 out of 32 analysts on Bloomberg rate GILD stock as a “buy” • Analysts expect revenue to be 9.20% higher in 2013 than 2012 • Hepatitis C drug could generate as much as $3.8 billion in annual sales by 2020 (Bloomberg) • Additionally, four HIV/AIDS drugs and one for heart failure are in final stages of testing