Gilead Sciences: Pipeline, Products, Performance, Potential

Pharmaceutical company intelligence reports from Espicom provide a full review of the company's activities together with five-year sales forecasts for its key products. The company's financial performance is covered in-depth, from its latest results to a complete analysis of its latest full fiscal year and an outlook for the future. A section on company strategy covers mergers, acquisitions and divestitures, key agreements, products and R&D. An overview of key products and R&D is followed by a comprehensive review of the company's product portfolio and research and development pipeline by therapeutic area. In addition, supplementary appendices provide more in-depth information on financials, agreements and corporate events.

In 2006, Gilead took a gamble, believing the short-term costs incurred through the acquisitions of Corus Pharma, Myogen and Raylo Chemicals would lead to long-term growth for the company. The consequence of which was, despite record sales, Gilead reported its biggest income losses in recent corporate history. In the wake of this, in 2007, Gilead focused on the integration of its worldwide organisation and infrastructure to regulate the company's capital requirements. Through this strategy, Gilead recovered stronger operating results for fiscal 2007 and, in fiscal 2008, double-digit growth was seen in company revenue and income.

Traditionally, the company has been strongly focused on the treatment of infectious diseases, especially HIV, and was in danger of becoming pigeon-holed within an increasingly competitive market. The take-overs of Corus Pharma and Myogen signalled a new direction for Gilead, moving the company into the fields of respiratory and cardiopulmonary disease. These purchases included several late-stage, novel candidate compounds which have doubled the size of Gilead's R&D pipeline.

Gilead's HIV product portfolio remains its strongest asset, generating 81.2 per cent of total company sales in 2008. Atripla and Truvada are expected have combined sales approaching US$5 billion by 2013, and will remain the main growth drivers for the company in the foreseeable future. Beyond the HIV portfolio, AmBisome and Hepsera remain important products for Gilead and are forecast to contribute strongly to sales. In addition, the acquisition of Myogen has provided Gilead with exclusive rights to Letairis, which was launched for pulmonary hypertension in the US and Europe in 2007 and 2008 respectively. Initial sales of Letairis have been promising, further validating Gilead's move into non-virology fields. Viread is the only major product forecast to experience declining sales, and this can be attributed to cannibalisation effects caused by the success of Atripla and Truvada. Seeking to maximise the value of Viread, Gilead is looking to launch the product for the treatment of hepatitis B. The acquisition of Raylo Chemicals and Nycomed's Irish subsidiary provides Gilead with the manufacturing facilities and infrastructure to meet growing demand for all its products, especially the new HIV combination drugs.

It would seem Gilead's gamble seems justifiable, with the acquisitions providing the company with the tools for long-term growth. One remaining significant threat to this growth is Gilead's reliance on its key agreements with other pharmaceutical companies. In 2007, royalty and contract revenue accounted for 11.8 per cent of company revenue, and much of this can be attributed to improved sales of Tamiflu by Roche. This contribution has been reduced to 4.7 per cent of company revenue in fiscal 2008 due to lower demand for Tamiflu. Further declines are anticipated. Furthermore. Atripla has already been cited as a key product for future growth, however, its success will depend on the working relationship between Bristol-Myers Squibb, Merck & Co and Gilead, who are working in a three-way joint venture centred on the marketing of this product.

This new strategic analysis report Gilead Sciences: Pipeline, Products, Performance, Potential, provides a complete and critical review of the company and includes unique and independent assessments and forecasts of key products. Buyers of the web edition receive online access for one year via an easy-to-use interface with fast navigation and a full text search facility. All formats are the same price.

• Executive Summary
  • A detailed and comprehensive overview of current financial position, company strategy, product and pipeline analysis.
• Therapeutic Area Focus
  • Key product analysis and forecasting
• Anti-viral
  • Atripla (emtricitabine+tenofovir disoproxil fumarate+efavirenz)
  • Truvada (emtricitabine+tenofovir disoproxil fumarate)
  • Viread (tenofovir disoproxil fumarate)
  • Hepsera (adefovir dipivoxil)
• Operational Data
  • A wealth of background and detail
  • A full 5-year financial performance assessment
  • Key corporate events
  • Key agreements
  • Infrastructure
  • Subsidiaries and joint ventures