Gilead Sciences, Inc. discovers, develops, and commercializes medicines in the areas of unmet medical needs in Europe, North America, Asia, South America, Africa, Australia, India, and the Middle East. The company's products include Descovy, Odefsey, Genvoya, Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, Tybost, and Vitekta for the treatment of human immunodeficiency virus (HIV) infection in adults; and Vemlidy, Epclusa, Harvoni, Sovaldi, Viread, and Hepsera products for treating liver diseases. It also offers Zydelig, a PI3K delta inhibitor, in combination with rituximab, for the treatment of certain blood cancers; Letairis, an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa, a tablet used for the treatment of chronic angina; Lexiscan/Rapiscan injection for use as a pharmacologic stress agent in radionuclide myocardial perfusion imaging; Cayston, an inhaled antibiotic for the treatment of respiratory systems in cystic fibrosis patients; and Tamiflu, an oral antiviral capsule for the treatment and prevention of influenza A and B. In addition, the company provides other products, such as AmBisome, an antifungal agent to treat serious invasive fungal infections; and Macugen, an anti-angiogenic oligonucleotide to treat neovascular age-related macular degeneration. Further, it has product candidates in various stages of development for the treatment of HIV/AIDS and liver diseases, such as hepatitis C virus and hepatitis B virus; hematology/oncology; cardiovascular; and inflammation/respiratory diseases. The company markets its products through its commercial teams and/or in conjunction with third-party distributors and corporate partners. Gilead Sciences, Inc. has collaboration agreements with Bristol-Myers Squibb Company, Janssen R&D Ireland, Japan Tobacco Inc., Galapagos NV., and Spring Bank Pharmaceuticals, Inc. The company was founded in 1987 and is headquartered in Foster City, California.
Business Analysis of Gilead Sciences
The Life Sciences Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Gilead Sciences compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Gilead Sciences to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Gilead Sciences with an interactive chart.
- Revenue Growth: Gilead Sciences reported a revenue growth of -6.9% year-on-year during 2016. Biotechnology Industry grew at 7.0% in the same period
- COGS share of Revenues: As a percentage of revenue, Gilead Sciences spent 14.0% of its total revenues on COGS. Biotechnology industry average (COGS share of revenue) in the same period was 15.0%
- R&D share of Revenues: As a percentage of revenue, Gilead Sciences spent 16.8% of its total revenues on R&D. Biotechnology industry average R&D spending in the same period was 23.7%
- SG&A share of Revenues: As a percentage of revenue, Gilead Sciences spent 11.2% of its total revenues on Sales, Marketing, and General Administration (SG&A). Biotechnology industry average SG&A spending in the same period was 20.7%
- Inventory share of Revenues: As a percentage of revenue, Gilead Sciences spent 5.2% of its total revenues on Inventories. Biotechnology industry average Inventory spending in the same period was 7.5%
- Accounts Payable share of Revenues: As a percentage of revenue, Gilead Sciences invested 4.0% of its total revenues on Accounts Payable (A/P) Biotechnology industry average Accounts Payable investment in the same period was 11.8%
- Accounts Receivable share of Revenues: As a percentage of revenue, Gilead Sciences invested 14.9% of its total revenues on Accounts Receivable (A/R). Biotechnology industry average Accounts Receivable investment in the same period was 16.6%
- PP&E share of Revenues: As a percentage of revenue, Gilead Sciences invested 9.4% of its total revenues on Property, Plants, and Equipments (PP&E). Biotechnology industry average PPE investment in the same period was 17.0%
- Intangibles share of Revenues: As a percentage of revenue, Gilead Sciences invested 33.4% of its total revenues on Intangibles. Biotechnology industry average Intangibles investment in the same period was 96.4%
- Net Margins: Gilead Sciences Net Margins in the year 2016 were 44.4%. Biotechnology industry average Net Margins in the same period were 26.6%
Sector and Industry Association of Gilead Sciences
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Gilead Sciences is associated with Healthcare Sector Group, Life Sciences Sector, and Biotechnology Industry.
Life Sciences sector is comprised of the following industries: Pharmaceuticals; Medical Devices; Biotechnology; Diagnostics & Scientific Instruments. The definitions for each of the industries is as follows:
- Pharmaceuticals industry includes companies that discover, develop, manufacture, and market medicines licensed for use as medications. In general these companies offer pharmaceutical products that can be described as prescription or over-the-counter medicines. Many Pharmaceutical companies also offer a diverse portfolio of animal health products, services and solutions. Many diversified pharmaceutical companies operate in more than two operating segments like consumer health products, medical devices and pharmaceutical.
- Medical Devices industry includes manufacturers and distributors of medical equipments and medical supplies. Medical equipments include large scale capital equipmets such as X-Ray machines and MRI scanners and other nondisposable medical devices like stents and pacemakers. Medical supplies include makers of contact lenses, eyeglass lenses, bandages and other disposable products.
- Biotechnology industry includes Biotechnology product companies, subscription companies, and service companies. Biotechnology product companies offer pharmaceutical drug products that are manufactured in, extracted from, or semi synthesized from biological sources. Subscription-based companies develop genome databases, which can be used to develop medicinal drugs. Service companies offer solutions based on a common technology or generic tool of other large pharmaceutical or biopharmaceutical companies.
- Diagnostics & Scientific Instruments industry includes companies that provide testing products, diagnostic reagents, instruments and diagnostic services to aid in the detection and treatment of a wide range of diseases. It also includes molecular diagnostic and genetic testing companies that develop, manufacture, market and provide diagnostic tests, diagnostic systems and related products and services. Also included are companies that manufacture and market analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics.
Industry Ranking of Gilead Sciences
With $30.4 billion revenues, Gilead Sciences ranked number 1 of all the companies in the US Biotechnology industry. There were a total of 45 public companies in the US Biotechnology industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Biotechnology industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
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- Get free data, charts, and analysis of Gilead Sciencesand its peers on select key performance indicators by clicking the reports provided below