3 Can’t-Miss Quotes from Gilead’s C-Suite

Gilead Sciences

• Gilead a powerhouse in HIV.– Treatments totaling $9 billion annually.– Q2 HIV sales up 9% YoY to $2.5 billion.

• It’s become a major player in hepatitis C.– Sovaldi’s sales were north of $3.5 billion in Q2.

• And now it’s got a potential cancer blockbuster.– Zydelig (idelalisib) approval for multiple non-Hodgkins

indications.

3 Can’t-Miss QuotesNo. 1

“Since approval more than 70,000 patients in United States and 10,000 patients in the EU have been treated with Sovaldi containing regimens,” said CEO John Martin.

3 Can’t-Miss QuotesWhy it matters?• Currently treated patient population is a fraction of the addressable market.

•$2.3 billion in first quarter sales.•$3.5 billion in second quarter sales.•Boosted total sales to $6.4 billion in Q2, up from $2.6 billion last year.•A similar opportunity in the five largest European markets.

•$400 million in Sovaldi sales in Europe in Q2.

•More approvals coming.

3 Can’t-Miss QuotesNo. 2 “We are seeing signs that physicians have begun

delaying treatment for some patients also known as warehousing in anticipation of the approval of the single-tablet regimen,” said EVP Paul Carter.

3 Can’t-Miss QuotesWhy it matters?• Sequential sales growth may stutter in Q3.• Sovaldi/Ledipasvir (LOF) FDA PDUFA date of October 10th.– Eliminates both interferon and ribavirin.– 94% of genotype 1 patients were effectively cured in eight weeks,

and 98% were effectively cleared in 12 weeks.• Increased Sovaldi + Johnson & Johnson Olysio use in Q2.– 70% of Sovaldi use in combination with Olysio.– Suggests doctors continue to favor non-interferon/ribavirin

solutions.

3 Can’t-Miss QuotesNo. 3 “HIV, prescription volume continued to grow on our HIV products.

Nine out of 10 patients new to treatment were prescribed to Gilead medicine, with seven out of 10 receiving one of Gilead’s Truvada-based single-tablet regimens,” said Carter.

3 Can’t-Miss QuotesWhy it matters?• More effective drugs are increasing

longevity.– Post diagnosis survival has doubled to >20

years since the early 1990s.

• Recent combination therapies are capturing market share.– Stribild leading HIV regimen for newly

diagnosed.– Stribild sequential script growth of 19% in

Q2.

• $9 billion HIV drug franchise is growing.– Reform driven increase in Medicaid and

healthcare insurance enrollment.

3 Can’t-Miss QuotesWhy it matters continued…

Future catalysts1. Zydelig approval and launch (July 2014)2. LDV/SOF FDA approval date (October PDUFA date).3. Simtuzamab phase 2 read-outs.– Pancreatic, colorectal, myelofibrosis before year end.

4. TAF therapy phase 3 for hepatitis B.– Expect to complete enrollment by year end.

5. More HIV single table regimens coming.1. Phase 3 ECF TAF data in Q3.2. Potential filing in Q1 ‘15.

Leaked: A coming blockbuster that could

make even Gilead jealous.