Company Profile
Establishment of company
Gilead Sciences (: GILD) was founded in 1987, so it is only 37 years old this year. In 1987, 29-year-old Michael L. Riordan started a business in Foster City, San Francisco Bay Area, USA, and named the company Gilead.
Founder’s background
But Michael L. Riordan, the founder of Gilead, studied at the University of Washington, Johns Hopkins University School of Medicine, and Harvard Business School. Therefore, he is a talented person who understands both medicine and business.
The company’s original capital
When he founded Gilead, he was only 29 years old. He received a US$2 million investment from the venture capital firm Menlo Ventures, which was also the key to Gilead’s start.
Famous products
In addition to remdesivir, this company also holds other trump cards, including the world’s first oral compound single-pill formulation and first vaccine for a complete treatment program for HIV (AIDS) infection; the world’s first oral drug that can cure chronic hepatitis C (HCV) ; and a number of drugs that can help effectively control chronic hepatitis B (HBV).
IPO
In 1992, the loss-making Gilead was listed on the Nasdaq, raising US$86.25 million. During this period, Gilead mainly relied on investor funding from the board of directors to survive.
Company Operation
Revenue scale
In 2023, Gilead’s annual revenue will be US$27.116 billion.
Large R&D budget
How much will Gilead invest in R&D in 2023? US$5.718 billion. R&D investment accounts for approximately 21% of revenue. This proportion is a quite astonishing figure when looking at global companies.
Growing through acquisitions
Since 1999, Gilead has embarked on a spree of acquisitions; the following are the company’s more famous acquisitions:
- NeXstar Pharmaceuticals(1999)
- Triangle Pharmaceuticals (2003)
- Myogen, Inc. (2006)
- Corus Pharma, Inc (2006)
- Raylo Chemicals (2006)
- CV Therapeutics, Inc. (2009)
- CGI Pharmaceuticals (2010)
- Calistoga Pharmaceuticals(2011)
- Pharmasset Inc (2011)
- Phenex Pharmaceuticals (2015)
- EpiTherapeutics(2015)
- Galapagos NV(2015)
- Nimbus Apollo, Inc. (2016)
- Kite Pharma(2017)
- Cell Design Labs (2017)
- Tmunity Therapeutics (2023)
- Forty Seven(2020)
- Immunomedics(2020)
- MYR GmbH(2020)
- MiroBio (2022)
- CymaBay Therapeutics(2024)
Gilead’s expertise
Areas of expertise
The company’s research and development areas are mainly in antiviral drugs. Soon after its founding, Gilead shifted its strategy to antiviral drugs, focusing on the development of drugs for the treatment of AIDS (HIV), hepatitis B (HBV), hepatitis C (HBV), influenza, respiratory diseases, antifungals and other related fields.
Main products
So by far, the drugs that the company is most famous for, and that generate the most revenue for the company, are also various well-known antiviral drugs. It includes more than 10 drugs such as Sovadi for the treatment of hepatitis C, Veride for the treatment of chronic hepatitis B, and Jiefukan for the treatment of AIDS.
Gild’s well-known drugs
AIDS (HIV)
How big is the market for AIDS?
The World Health Organization defines AIDS as a “major global public health problem.” Data shows that by the end of 2022, there are expected to be 39 million infected people around the world. Since the first clinical case report of AIDS was published in the United States in 1981, more than 35 million people have died from HIV or AIDS-related diseases. In 2022, there will be almost 1.3 million new people infected with HIV around the world, and one person will die of AIDS every minute on average.
Gilead is a leader in HIV drugs
In the field of AIDS, Gilead has nearly 10 drugs including Atripla, Truvada, and Biktarvy. Gilead accounts for half of the global AIDS drug market.
Tenovirfor (Viread)
In 2001, Gilead launched its first anti-AIDS drug, Tenovir (Viread), which remains one of the most widely used antiretroviral drugs. Due to the drug’s popularity, Gilead achieved revenue of US$230 million the following year, which also allowed the company to achieve its first profit 15 years after its establishment. Subsequently, Gilead launched a series of combination drugs such as Atripla, Complera, and Stribild, completely consolidating its leading position in the AIDS market.
HIV vaccine nakapavir
In June 2024, Gilead announced the third phase trial data of AIDS prevention drugs: two injections a year, 100% effective! The trial was conducted in South Africa and Uganda, with more than 5,300 young women aged 16-25 years old. In this double-blind randomized research trial, 2,134 women were injected with “Lenacapavir” produced by Gilead, and there were 0 cases of infection.
A major breakthrough in this trial is not only the effectiveness shown by the data, but more importantly, its “long-lasting effect”, which only requires a subcutaneous injection every six months. Currently, many other treatment options require daily medication. Gilead’s drug is not a vaccine in its essence, but a long-acting drug. It is currently expected to be officially launched in 2025.
Hepatitis C (HCV)
Acquisition of Pharmasset
In 2011, Gilead, with a market value of only US$30 billion, made a huge gamble and acquired Pharmasset for a sky-high price of US$11.2 billion.
HCV specific drug Solvadi
Shortly after the acquisition, Solvadi, a drug developed by this company to treat hepatitis C, was approved for marketing. The drug’s annual cure rate was as high as 90%, and it was hailed as the most important drug approved by the FDA that year. Gilead Sciences has become famous as a result, turning from a little-known small pharmaceutical company into a well-known innovative pharmaceutical company.
New HCV drug Harvoni
In 2014, Gilead launched Harvoni, a new drug with better efficacy against hepatitis C. The drug brought Gilead a total sales revenue of US$12.41 billion at the end of 2014. In 2015, this number became 19.14 billion. These two hepatitis C treatments have caused Gilead’s stock price to rise to a high of $108, and its market value has increased five times compared to before the acquisition, once reaching $160 billion.
Remdesivir
Invented for Ebola virus
Remdesivir was originally invented to prevent and treat Ebola virus infection, but the results were not very effective.
Widely used in the early stages of the COVID-19 epidemic
When COVID-19 first broke out, there was no vaccine yet. Some doctors have found that Remdesivir can effectively fight the COVID-19 virus. Patients’ conditions improved rapidly after treatment with Remdesivir; therefore, it was widely used in the early stages of the COVID-19 epidemic. The company Gilead became well-known.
Investment risks
Excellent Drugs are bad for Gilid
An interesting phenomenon is that Gilead’s hepatitis C drug revenue is declining year by year. This is not because of price pressure, but because the number of suitable patients has decreased. In other words, when a disease is gradually eliminated, people no longer need specific drugs.
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