Pharma gi­ant Gilead in rev­enue slump

Irish Independent - Business Week - - IN PERSON - Gor­don Dee­gan

REV­ENUES at the main Ir­ish arm of pharma gi­ant Gilead last year plunged by 42pc to $10.26bn (€9bn).

That is ac­cord­ing to new ac­counts filed by Gilead Sciences Ire­land that show that the com­pany recorded a 5pc de­crease in pre-tax prof­its to $54m.

The com­pany’s cor­po­rate tax bill in­creased marginally, from $3.2m to $4m. The di­rec­tors state that the drop in rev­enues from $17.643bn to $10.26bn was pri­mar­ily due to lower sales of hep­ati­tis C virus prod­ucts across all mar­kets, most sig­nif­i­cantly in Ja­pan and the US.

The busi­ness had the com­par­a­tively low prof­its af­ter the com­pany’s ad­min­is­tra­tive ex­penses to­talled $8.44bn along with cost of sales amount­ing to €1.37bn. The num­bers that the firm em­ploys here in­creased from 349 to 390 last year with 111 in pro­duc­tion, 152 in man­age­ment and ad­min­is­tra­tion, 88 in med­i­cal and reg­u­la­tory, 31 in distri­bu­tion and eight in sales and mar­ket­ing.

Staff costs in­creased from $42.4m to $48.95m.

The firm is best known for its suite of HIV drugs and the di­rec­tors state that sales of its Teno­fovir Alafe­namide (TAF) based prod­ucts con­tin­ues to in­crease “leav­ing the to­tal HIV port­fo­lio in a sta­ble po­si­tion year-on-year”.

Pay to di­rec­tors last year topped $1m com­pared to $597,000 in 2016.

The com­pany’s non-cash de­pre­ci­a­tion costs to­talled $12.47m in 2017.

The busi­ness re­ceived div­i­dend in­come of $36.2m in 2017. This fol­lowed div­i­dends re­ceived of $42.76m in 2016.

The Ir­ish com­pany recorded a gross profit of $8.8m last year be­fore the hefty ad­min­is­tra­tive ex­penses are taken into ac­count.

The com­pany recorded op­er­at­ing prof­its of $7.79m in 2017 and the $36.2m div­i­dend in­come and in­ter­est re­ceiv­able of $11.6m re­sulted in the pre-tax prof­its of $54.87m.

In 2017, the Gilead group glob­ally recorded rev­enues of $26bn – down from the $30bn recorded in 2016.

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