3Q Revenues: $6.6 billion (+17%)
3Q Earnings: $360 million (earnings were $1.2 billion 3Q19)
YTD Revenues: $17.3 billion (+4%)
YTD Loss: $1.4 billion (earnings were $2.7 billion YTD19)
Comments: HIV Product sales were $4.5 billion, up 8% primarily due to the continued strength of the HIV franchise and Biktarvy share continues to grow in the U.S. HCV Product sales declined 31% to $464 million impacted by delayed patient starts due to the COVID-19 pandemic and lower average net selling price. Veklury (remdesivir) revenues were $873 million in the third quarter. Cell Therapy Product sales, which include Yescarta and Tecartus, were $147 million, up 25%, driven by the continued uptake and expansion of Yescarta in Europe. Tecartus was approved by the U.S. FDA during the third quarter 2020. Other Product sales, which include Vemlidy, Viread, Letairis, Ranexa, Zydelig, AmBisome and Cayston, were $462 million, down 11% primarily due to expected declines in sales of Letairis and Ranexa after generic entries in the first half of 2019.
R&D Expenses were $1.2 billion, up 12% primarily due to higher clinical trial expenses related to remdesivir and higher investments in oncology programs including magrolimab, partially offset by lower costs as a result of Gilead’s pause or postponement of certain clinical trials due to the COVID-19 pandemic. The GAAP effective tax rate and non-GAAP ETR for quarter were 57.2% and 18.4%, respectively, compared to 22.2% and 22.1% for the same period in 2019, respectively. The increase is primarily due to unrealized loss on Gilead’s equity investments in Galapagos, as well as certain third quarter 2020 acquired IPR&D charges.