GILEAD SCIENCES NDQ-GLD 3.7% 123.4 103.1 70.3 14 1 Raum RECENT IPE Training: 172 RELATIVE VALUE Media YLD LINE TIMELINESS 22000 High 248 21.7 38.6 76.1 116.8 8.3 89.5 203 70.5 86.0 172 20.7 36.9 63.5 850 60.3 Target Price Range SAFETY 60.0 3 mm LEGENDS 2023 2024 2025 TECHNICAL 5 420 O Cash Fr Rice Strongh 200 207 BETA 105 000. tor Oponses 18 Month Target Price Range Sanded me Low High Midpoint to il 80 543-574 $50 (-20%) 2023-35 PROJECTIONS Price Anal Total Galin (-5%) Institutional Decisions * TOT RETURN 220 659 em Percent 666 658 1 yr. 746 10.8 8.8 GRO 755 3 yr. 8.5 103038310212211024172 will nullum Syr -235 20.3 Gilead Sciences was incorporated in the 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 VALUE LINE PUB, LLC 23-25 state of Delaware in June of 1987. The com 4.96 5.ST 6.39 7:30 22.95 23.20 17.26 17.60 18.15 Sales persh pany completed its initial public offering in 19.65 197 2.00 2.23 8.77 13.51 11.19 8.73 5:37 5.35 6.85 725 Cash Flowers 7.90 January of 1992, issuing 11.5 milion shares 1.66 1.78 1.64 181 735 11.91 9.94 768 417 422 5.70 of common stock for total proceeds of &.10 Earnings persh 6.65 129 18 208 228 272 2.90 Ods Decld persh 2.14 $86.25 milion. Two more stock offerings fol 4 12 57 .15 . Cap 1 Spending persh lowed, one of 3.34 million shares raising 3.82 4.56 6.23 7.66 10.55 13.00 14.42 15.63 16.68 17.79 18.45 19. Book Value persh 20.95 $50 million in December of 1992, and anoth-160401506215192154149031122013000 13001202020 er of 4 million shares in August of 1995, 120 CommonShs Oulairg 1220 113 173 311 97 which raised $94.2 million in proceeds. 175 Borse Arg Ann IPE Ratio 7115 .75 .70 1.10 1.75 64 45 44 47 36 35 We Relative PE Ratio 75 CAPITAL STRUCTURE as of 1201/19 1.25 225 2.9% 3.1% Arg An DIY 2.5% Total Del 2450 mil. Due In Yn $2490 mill 79194 38649702511202243328303038028107221272240 22000 22500 Sales (Sill 23950 LT Debit 522094 mLT Interest $803.9 mil. 53.0% 43.854.254.566.5% 714% 58.0% 58.0% 0.5% OMX Operating Margin 57.5% includes 18.6 shares underlying June, 2020 265202270210600 10600 115800 1480 14040 1405 100 Depreciation 1500 warrants with a strike price of $74.75h) 29013280362501620748121011810813501 101285460.000 7125 7545 Nel Profil (50% of Cape 25.9% 23% 20.3 23.9% 18.5% 1645 2105 25.0% 30% NE Leases, Uncapitalized: $23.7 18.0% 18.5% Income Tax Rate 125% 35.5% 39.45 2.75 2745480414388%207%24.0% 32.4% 326 Nel Profile Margin 12.9% No Defined Benefit Pension Plan 320111404186/01793148/2112252018825231 2057 20000 20000 Working Capi 21175 Common Stock 1.206,018,745 28,67605.770563971790121185 28346 30796205742201 22000 2000 Long Term Debt Smile 22000 as of 1/11/20 612131739550911745 15819 1854 1888 20412 2137 22525 206 2078 Squity 25875 11.13 275 1508 - 300% 2015 16.6% 20.5% 44.45 MARKET CAP: 091.5 bilionLarge Cap) 46.4% 30.5 20.5 13.15 11.0% 18.5% 19.0% Return on Total Cap1 10% 4745 40.8% 27.1%202% 76.5% 71.5% 49.5% 25.5% 23.9% 31.0% 31.5% Return on Sly. Equity CURRENT POSITION 2017 31.5% 2018 12331/19477408% 27.1% 22% 76.5% 87.6% 58.5% 382% SMTL) 11.6% 9.6% 1016% Retained to Com Eq 16.5% Cash Assets 25510 30089 24352 18% 50% 40% as Dia to Net Prod 47% Receivables 3851 3327 3582 Inventory (FFO) 801 814 902 BUSINESS: Gilad Sciences discovers, develops, and commercial rate: 124%, RAD expense: 14.0% of sales. Has about 6.820 om Other 1661 1440 tres proprietary treatments for viral diseases (specifically HIV Aids, ployees. Officers and directors own 2% of common stock Current Assets 31823 35836 30256 influenza, hepatitis Band Cloukemia and Lymphoma) Drugs our Vanguard, 7.9%; BlackRock, 8.2%; Capital Research, 5.7% (4/19 Acets Payable 814 790 713 pertly on the market include Sovald, Harvoni, Sinbild (formerly proxy). Chairman: John C. Martin Pro. President & CEO: Daniel Det Due 2747 2748 Other 2499 known as the QUADI. Complera, AmBloome, Atriple. Truda O'Day. Incorporated CA Address: 333 Lakeside Drive, Foster Cly. 8074 7067 6547 Viread, Emri, Tamil, Valide and Meera 2016 depreciation CA 94404. Telephone: 650-574-3000. Internet: www.gload.com Current Liab. 77635 700 7750 ANNUAL RATES Past Gilead is working on a vaccine for the the current quarter. Gilead would buy al change (per 10 Yrs. Past Estd 10. COVID-19 virus. The company is con- FTSV for $95.50 a share in cash, or ap Sales 24.9% 25.5% -1.5% ducting six trials with infected patients proximately $4.9 billion. The buy ought to Cash Flow 25.0% 32.8% -10% around the world, primarily in the Wuhan, bolster Gilead's oncology portfolio. This is Earnings 2008 3308 -1.5% Dividends 6.ON Seattle, and New York regions. Gilead is because GILD is ostensibly purchasing Book Value 24.5% 20.5% 3.5% using its intravenous antiviral drug Rem- FTSV for Magrolimab, which is being QUARTERLY SALES desivir in the trials. The company expects tested to treat myelodysplastic syndrome. Ful endar Mar 31 Jan. 30 Sep.30 Dec.31 to have some results from the first two Year acute myeloid leukemia, and diffuse large 2017 6505 7141 6512 5949 26107 trials by late April. Although Remdesivir B-cell lymphoma. The acquisition ought to 2018 5088 5648 5596 5795 2127 is not FDA approved to combat any viral add $1.2 billion in annual revenues (cur- 2019 5281 56855604 5879 2449 disease, it has shown some efficacy in rently excluded from our presentation) 2020 5400 550 550 5600 22000 nighting the HINI virus, as well as ebola. It appears as if Gilead is moving back 2021 5800 5620 5820 368052500 and a variation of SARS. Gilead had ap into the oncology space. This is Cal EARNINGS PER SHARE A plied for orphan drug status for Rem- highlighted by the pending FTSV buy. We endar Mar 31 Jan. 30 Sep.30 Dec.31 Year base of less than 200,000). But consumer tial cash flow generating ability to acquire desivir (the ability to treat a population look for CILD to use more of its substan- 2017 205 233 206 127 7.71 2018 1.18 1.39 1.60 NE 4.17 group and political outrage forced Gilead more companies with promising cancer 2019 154 147 0.92 2.12 4.22 2020 1.40 1.50 1.40 1.40 5.70 not considered a rare disease, and will in. This timely stock has subpar total re- 2021 1.50 1.80 1.50 1.50 6.10 fect many more than 200,000 people. Cur turn potential. This is mainly because it Cal QUARTERLY DIVIDENDS PAD rently, the medicine is being used in the is one of the few equities that has moved Fu endar Mar 31 Jun 30 Sep.30 Dec.31 Year most critical of cases on a compassionate up in price since our early January report. 2016 basis. Huge demand for the drug has should Remdes/vir prove effective in tack- 41 A7 47 2017 52 52 5252 2.08 limited its availability. Gilead has stated lingCOVID-19, we would revisit our 2010 57 57 5757 that Remdesivir is a work in progres, and projections in a much more favorable light 228 2019 63 63 2.52 not a panacea. The growing, generous, and well-covered 2020 Gilead intends to acquire Forty Seven dividend is appealing (FTSV). The deal is expected to close in Jeremy J. Butler April 3, 2020 (A) Dilled earnings. Ouwely share wing in milions. Adjusted for its Company's Financial Strength in 2014 do not sum total due to change tali Dividend initiated in second garter 2015 Stock's Price Stability 70 shares standing. Next carring report de Didend pay the end of March, June Price Growth Persistence 50 and have Earnings Predictability 1 40 9 Compute current year cash flow in whole dollars. 10 Compute current year working capital. 11 What is Gilead's market capitalization in whole dollars? 12 What is Gilead's 10 year annualized earnings growth rate? 13 What is Gilead's 1 year stock price return as of this report? 14 What is Gilead's current dividend yield? 15 What is Gilead's current price earnings ratio? 16 Would you consider Gilead Sciences an above average stock market risk company? 17 How much does Gilead distribute in cash in the form of a dividend relative to net income in the current year? (use a percentage in your response) 18 Would you consider your response to #17 a high value? 19 Does Gilead Sciences have a positive cost structure for the current year? (yeso) 20 What is Gilead Sciences working on a vaccine for? GILEAD SCIENCES NDQ-GLD 3.7% 123.4 103.1 70.3 14 1 Raum RECENT IPE Training: 172 RELATIVE VALUE Media YLD LINE TIMELINESS 22000 High 248 21.7 38.6 76.1 116.8 8.3 89.5 203 70.5 86.0 172 20.7 36.9 63.5 850 60.3 Target Price Range SAFETY 60.0 3 mm LEGENDS 2023 2024 2025 TECHNICAL 5 420 O Cash Fr Rice Strongh 200 207 BETA 105 000. tor Oponses 18 Month Target Price Range Sanded me Low High Midpoint to il 80 543-574 $50 (-20%) 2023-35 PROJECTIONS Price Anal Total Galin (-5%) Institutional Decisions * TOT RETURN 220 659 em Percent 666 658 1 yr. 746 10.8 8.8 GRO 755 3 yr. 8.5 103038310212211024172 will nullum Syr -235 20.3 Gilead Sciences was incorporated in the 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 VALUE LINE PUB, LLC 23-25 state of Delaware in June of 1987. The com 4.96 5.ST 6.39 7:30 22.95 23.20 17.26 17.60 18.15 Sales persh pany completed its initial public offering in 19.65 197 2.00 2.23 8.77 13.51 11.19 8.73 5:37 5.35 6.85 725 Cash Flowers 7.90 January of 1992, issuing 11.5 milion shares 1.66 1.78 1.64 181 735 11.91 9.94 768 417 422 5.70 of common stock for total proceeds of &.10 Earnings persh 6.65 129 18 208 228 272 2.90 Ods Decld persh 2.14 $86.25 milion. Two more stock offerings fol 4 12 57 .15 . Cap 1 Spending persh lowed, one of 3.34 million shares raising 3.82 4.56 6.23 7.66 10.55 13.00 14.42 15.63 16.68 17.79 18.45 19. Book Value persh 20.95 $50 million in December of 1992, and anoth-160401506215192154149031122013000 13001202020 er of 4 million shares in August of 1995, 120 CommonShs Oulairg 1220 113 173 311 97 which raised $94.2 million in proceeds. 175 Borse Arg Ann IPE Ratio 7115 .75 .70 1.10 1.75 64 45 44 47 36 35 We Relative PE Ratio 75 CAPITAL STRUCTURE as of 1201/19 1.25 225 2.9% 3.1% Arg An DIY 2.5% Total Del 2450 mil. Due In Yn $2490 mill 79194 38649702511202243328303038028107221272240 22000 22500 Sales (Sill 23950 LT Debit 522094 mLT Interest $803.9 mil. 53.0% 43.854.254.566.5% 714% 58.0% 58.0% 0.5% OMX Operating Margin 57.5% includes 18.6 shares underlying June, 2020 265202270210600 10600 115800 1480 14040 1405 100 Depreciation 1500 warrants with a strike price of $74.75h) 29013280362501620748121011810813501 101285460.000 7125 7545 Nel Profil (50% of Cape 25.9% 23% 20.3 23.9% 18.5% 1645 2105 25.0% 30% NE Leases, Uncapitalized: $23.7 18.0% 18.5% Income Tax Rate 125% 35.5% 39.45 2.75 2745480414388%207%24.0% 32.4% 326 Nel Profile Margin 12.9% No Defined Benefit Pension Plan 320111404186/01793148/2112252018825231 2057 20000 20000 Working Capi 21175 Common Stock 1.206,018,745 28,67605.770563971790121185 28346 30796205742201 22000 2000 Long Term Debt Smile 22000 as of 1/11/20 612131739550911745 15819 1854 1888 20412 2137 22525 206 2078 Squity 25875 11.13 275 1508 - 300% 2015 16.6% 20.5% 44.45 MARKET CAP: 091.5 bilionLarge Cap) 46.4% 30.5 20.5 13.15 11.0% 18.5% 19.0% Return on Total Cap1 10% 4745 40.8% 27.1%202% 76.5% 71.5% 49.5% 25.5% 23.9% 31.0% 31.5% Return on Sly. Equity CURRENT POSITION 2017 31.5% 2018 12331/19477408% 27.1% 22% 76.5% 87.6% 58.5% 382% SMTL) 11.6% 9.6% 1016% Retained to Com Eq 16.5% Cash Assets 25510 30089 24352 18% 50% 40% as Dia to Net Prod 47% Receivables 3851 3327 3582 Inventory (FFO) 801 814 902 BUSINESS: Gilad Sciences discovers, develops, and commercial rate: 124%, RAD expense: 14.0% of sales. Has about 6.820 om Other 1661 1440 tres proprietary treatments for viral diseases (specifically HIV Aids, ployees. Officers and directors own 2% of common stock Current Assets 31823 35836 30256 influenza, hepatitis Band Cloukemia and Lymphoma) Drugs our Vanguard, 7.9%; BlackRock, 8.2%; Capital Research, 5.7% (4/19 Acets Payable 814 790 713 pertly on the market include Sovald, Harvoni, Sinbild (formerly proxy). Chairman: John C. Martin Pro. President & CEO: Daniel Det Due 2747 2748 Other 2499 known as the QUADI. Complera, AmBloome, Atriple. Truda O'Day. Incorporated CA Address: 333 Lakeside Drive, Foster Cly. 8074 7067 6547 Viread, Emri, Tamil, Valide and Meera 2016 depreciation CA 94404. Telephone: 650-574-3000. Internet: www.gload.com Current Liab. 77635 700 7750 ANNUAL RATES Past Gilead is working on a vaccine for the the current quarter. Gilead would buy al change (per 10 Yrs. Past Estd 10. COVID-19 virus. The company is con- FTSV for $95.50 a share in cash, or ap Sales 24.9% 25.5% -1.5% ducting six trials with infected patients proximately $4.9 billion. The buy ought to Cash Flow 25.0% 32.8% -10% around the world, primarily in the Wuhan, bolster Gilead's oncology portfolio. This is Earnings 2008 3308 -1.5% Dividends 6.ON Seattle, and New York regions. Gilead is because GILD is ostensibly purchasing Book Value 24.5% 20.5% 3.5% using its intravenous antiviral drug Rem- FTSV for Magrolimab, which is being QUARTERLY SALES desivir in the trials. The company expects tested to treat myelodysplastic syndrome. Ful endar Mar 31 Jan. 30 Sep.30 Dec.31 to have some results from the first two Year acute myeloid leukemia, and diffuse large 2017 6505 7141 6512 5949 26107 trials by late April. Although Remdesivir B-cell lymphoma. The acquisition ought to 2018 5088 5648 5596 5795 2127 is not FDA approved to combat any viral add $1.2 billion in annual revenues (cur- 2019 5281 56855604 5879 2449 disease, it has shown some efficacy in rently excluded from our presentation) 2020 5400 550 550 5600 22000 nighting the HINI virus, as well as ebola. It appears as if Gilead is moving back 2021 5800 5620 5820 368052500 and a variation of SARS. Gilead had ap into the oncology space. This is Cal EARNINGS PER SHARE A plied for orphan drug status for Rem- highlighted by the pending FTSV buy. We endar Mar 31 Jan. 30 Sep.30 Dec.31 Year base of less than 200,000). But consumer tial cash flow generating ability to acquire desivir (the ability to treat a population look for CILD to use more of its substan- 2017 205 233 206 127 7.71 2018 1.18 1.39 1.60 NE 4.17 group and political outrage forced Gilead more companies with promising cancer 2019 154 147 0.92 2.12 4.22 2020 1.40 1.50 1.40 1.40 5.70 not considered a rare disease, and will in. This timely stock has subpar total re- 2021 1.50 1.80 1.50 1.50 6.10 fect many more than 200,000 people. Cur turn potential. This is mainly because it Cal QUARTERLY DIVIDENDS PAD rently, the medicine is being used in the is one of the few equities that has moved Fu endar Mar 31 Jun 30 Sep.30 Dec.31 Year most critical of cases on a compassionate up in price since our early January report. 2016 basis. Huge demand for the drug has should Remdes/vir prove effective in tack- 41 A7 47 2017 52 52 5252 2.08 limited its availability. Gilead has stated lingCOVID-19, we would revisit our 2010 57 57 5757 that Remdesivir is a work in progres, and projections in a much more favorable light 228 2019 63 63 2.52 not a panacea. The growing, generous, and well-covered 2020 Gilead intends to acquire Forty Seven dividend is appealing (FTSV). The deal is expected to close in Jeremy J. Butler April 3, 2020 (A) Dilled earnings. Ouwely share wing in milions. Adjusted for its Company's Financial Strength in 2014 do not sum total due to change tali Dividend initiated in second garter 2015 Stock's Price Stability 70 shares standing. Next carring report de Didend pay the end of March, June Price Growth Persistence 50 and have Earnings Predictability 1 40 9 Compute current year cash flow in whole dollars. 10 Compute current year working capital. 11 What is Gilead's market capitalization in whole dollars? 12 What is Gilead's 10 year annualized earnings growth rate? 13 What is Gilead's 1 year stock price return as of this report? 14 What is Gilead's current dividend yield? 15 What is Gilead's current price earnings ratio? 16 Would you consider Gilead Sciences an above average stock market risk company? 17 How much does Gilead distribute in cash in the form of a dividend relative to net income in the current year? (use a percentage in your response) 18 Would you consider your response to #17 a high value? 19 Does Gilead Sciences have a positive cost structure for the current year? (yeso) 20 What is Gilead Sciences working on a vaccine for