Gilead

3Q Revenues: $7.5 billion (-10%)

3Q Earnings: $3.3 billion (-28%)

YTD Revenues: $23.1 billion (-4%)

YTD Earnings: $10.4 billion (-23%)

Comments: HIV and other antiviral product sales were $3.5 billion, up 21% primarily due to continued uptake of tenofovir alafenamide (TAF) based products, Genvoya, Descovy, and Odefsey. HCV product sales, which consist of Harvoni, Sovaldi, and Epclusa, were $3.3 billion down 31% due to lower sales of Harvoni and Sovaldi, partially offset by Epclusa sales, which was launched in the U.S. and Europe in June and July 2016, respectively. Other product sales, which include Letairis, Ranexa and AmBisome, were $564 million in the quarter, up 11%. R&D expenses were $1.1 billion in the quarter, up 54% primarily due to the overall progression of Gilead’s clinical studies, including a $200 million milestone expense associated with the purchase of Nimbus Apollo, Inc.