Friday 14 December 2018

Pharma giant Gilead in revenue slump

'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' (stock photo)
'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' (stock photo)

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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