This article is part of the Center for Media & Democracy's spotlight on global corporations.
- 1 Basic Information
- 1.1 HQ Contact information
- 1.2 Country of incorporation
- 1.3 Ownership status
- 1.4 Primary industry sector
- 1.5 Primary industry ranking
- 1.6 Number of employees worldwide
- 1.7 Chief executive officer
- 1.8 Financial information
- 2 Detailed Information
- 2.1 Company history
- 2.2 Business strategy
- 2.3 Business scope
- 2.4 Geographic scope
- 2.5 Governance
- 2.6 Labor
- 3 Political & public influence
- 4 Corporate Accountability
- 5 Articles and resources
HQ Contact information
333 Lakeside Dr.
Foster City, CA
Phone: (650) 574-3000
Fax: (650) 578-9264
Country of incorporation
Primary industry sector
Primary industry ranking
- Fortune 500: 649 (801, 2005)
- Fortune 2006 Pharmaceutical Rank: 12
- 100 Fastest Growing Tech Companies: 9
- 2006 Business Week 50 Best Performing Companies: 3
Number of employees worldwide
Chief executive officer
John C. Martin, 55
- FMR Corporation 6.95%
- AXA, 5.49%
- Barclay’s, 5.18%
- Janus Capital, 3.87%
- Price (T. Rowe) Associates, 3.81%
- Jennison Associates, 3.60%
- Capital Research and Management, 3.28%
- Vanguard Group, 2.78%
- Goldman Sachs Group, 2.64%
- Due largely to their two major acquisitions this year.
Gilead Sciences was originally formed under the name of "Oligogen" in June 1987 by Michael Riordan, a 29-yeard old MD, with degrees from Harvard and Johns Hopkins. Prior to founding Gilead, Riordan had worked for Menlo Ventures, a venture capital firm. The company’s name was changed to "Gilead Sciences" for the incorporation in 1988. Under the technical leadership of Mark Matteucci the company focused on discovery research making small strands of DNA (oligomers) to assess the potential of genetic code blockers (gene therapy). Its development of small molecule antiviral therapeutics was ushered in by John Martin in 1992 with the licensing of nucleotide compounds discovered in two European academic labs.
In 1990, Gilead entered into a collaborative research agreement with Glaxo for the research and development of genetic code blockers, also known as antisense. This collaboration was terminated in 1998, and Gilead's antisense intellectual property portfolio was sold to Isis Pharmaceuticals.
Gilead debuted on the NASDAQ in January 1992. Its IPO raised $86.25 million in proceeds.
In 1996, Gilead appointed John C. Martin as the company’s President and CEO. This same year they launched their first commercial product, Vistide for the treatment of cytomegalovirus (CMV) retinitis in patients with AIDS. The company cooperated with Pharmacia & Upjohn to market the product outside the U.S.A.
In March 1999 Gilead acquired NeXstar Pharmaceuticals of Boulder, Colorado following two years of negotiations with the company. At the time, NeXstar's annual sales of $130 million was three times Gilead's sales. NeXstar's two revenue-generating drugs were AmBisome, an injectable fungal treatment, and DaunoXome, an oncology drug taken by HIV patients. Also in 1999, Roche announced first approval of Tamiflu (oseltamivir) for the treatment of influenza. Tamiflu was originally discovered by Gilead and licensed to Roche for late-phase development and marketing.
In 2001, Gilead received FDA approval for Viread, an HIV treatment drug.
In January 2003 Gilead completed its acquisition of Triangle Pharmaceuticals. The company also announced its first full year of profitability. Later that year Hepsera (adefovir) was approved for the treatment of chronic hepatitis B, and Emtriva (emtricitabine) for the treatment of HIV.
In 2004 Gilead launched Truvada, a fixed-dose combination of tenofovir and emtricitabine.
In January 1997, Donald Rumsfeld, a Board member since 1988, was appointed Chairman of the company. He stood down from the Board in January 2001 when appointed Secretary of Defense at the start of George W. Bush's first term as President. Federal disclosure forms indicate that Rumsfeld owns between USD$5 million and USD$25 million in Gilead stock. The rise in Gilead's share prices from USD$35 to USD$57 per share will have added between USD$2.5 million to USD$15.5 million to Rumsfeld's net worth. 
In November 2005, George W. Bush urged Congress to pass $7.1 billion in emergency funding to prepare for the possible H5N1(bird flu) pandemic, of which one billion is solely dedicated to the purchase, and distribution of Tamiflu.
In July 2006, the FDA approved Atripla, a once a day, single tablet regimen for HIV. Atripla combines Sustiva, a Bristol-Myers Squibb product with Truvada(itself a combination of emtricitabine and tenofovir disoproxil fumarate), a Gilead product. In it’s first six months the drug earned $205.7 million in salesBusiness Week Profile
Historical financial results
Since their founding in 1987, Gilead has routinely sought out partners for their drug products rather than trying to market them alone. Simultaneously they have attempted to grow by frequently acquiring their competitors.
|1999||Nexstar Pharmaceuticals||$550 million||Nexstar had two drugs (AmBisome and DaunoXome) of which only AmBisome is still in Gilead's portfolio, although it is not a major source of income for the company. DaunoXome was sold to Diatos in 2006. As important as the products, Nexstar also provided Gilead with a much-needed sales force and commercialization team in Europe and Australia, and a manufacturing plant in San Dimas, California. |
|2003||Triangle Pharmaceuticals||$464 million||Triangle owned the development and commercialization rights to emtricitabine, which although marketed as a stand-alone product (Emtriva), is also a component of the more profitable combination products Atripla and Truvada.|
|2006||Corus Pharma, Inc.||$365 million||The acquisition of Corus and Myogen signaled Gilead's entry into the pulmonary arena. Corus was developing aztreonam lysine for the treatment of patients with cystic fibrosis who are infected with Pseudomonas aeruginosa|
|2006||Myogen, Inc.||$2.5 billion||The purpose of this acquisition was to acquire Letairis (ambrisentan), an orally administered, once a day, treatment for pulmonary arterial hypertension(PAH). Latairis(ambrisentan) was approved by the FDA in June, 2007|
|2006||Raylo Chemicals, Inc.||$133.3 million||Raylo was a subsidiary of Degussa AG. Gilead intends to use the Edmonton site for the further development of their own line of products. This is far different from past mergers which were targeted to gain access to potential new therapies. |
Lines of business
Prescription Medications for:
- Hepatitis B
|Bristol-Myers Squibb & Gilead, LLC||United States|
|Gilead Biopharmaceutics Ireland||Ireland|
|Gilead Holdings, LLC||United States|
|Gilead Sciences Europe||England|
|Gilead Sciences Holdings||United States|
|Gilead Sciences GmbH||Germany|
|Gilead Sciences SARL||France|
|Gilead Sciences, S.r.L||Italy|
|Gilead Sciences, SL||Spain|
|Gilead Sciences, Lda||Portugal|
|Gilead Sciences Limited||Ireland|
|Gilead Sciences Ltd||United Kingdom|
|Gilead Sciences International Ltd||United Kingdom|
|Gilead Sciences Pty Limited||Australia|
|Gilead Sciences (NZ)||New Zealand|
|Gilead Sciences, BV||Netherlands|
|Gilead Sciences Canada, Inc||Canada|
|Gilead Sciences Hellas EPE||Greece|
|Gilead Sciences Luxembourg, S.a.r.l.||Luxembourg|
|Gilead Vintage Park, LLC||United States|
|Leaf & Shield Insurance||Bermuda|
- Cardinal Health Inc, 17.8%
- McKesson Corp, 12.1%
- AmerisourceBergen Corp 11.1%
|Brand Name||Drug Name(s)||Indication||Date Approved (USA)||Marketing Partner(s)||U.S. Patent Expiration||European Patent Expiration||2006 Sales (thousands)|
|AmBisome®||liposomal amphotericin B||fungal infection, cryptococcal meningitis, Aspergillus, Candida, Cryptococcus infections||1997-08-11||Astellas Pharma||2016||2008||$223,031|
|Atripla®||tenofovir, emtricitabine, and efavirenz||HIV, AIDS||2006-07-12||Bristol-Myers Squibb||2021||2018||$205,729|
|Flolan®||epoprostenol sodium||pulmonary hypertension||1995-09-20||GlaxoSmithKline||expired||expired|
|Hepsera®||adefovir dipivoxil||hepatitis B (HBV)||2002-09-20||2014||2011||$230,531|
|Letairis®||ambrisentan||pulmonary arterial hypertension||2007-06-15||GlaxoSmithKline|
|Macugen®||pegaptanib sodium solution||age-related macular degeneration||2004-12-17||OSI and Pfizer||2017||2017|
|Truvada®||emtricitabine and tenofovir||HIV, AIDS||2004-08-02||2021||2018||$1,194,292|
Countries of operation
Breakdown of revenues
- HIV Products: $2,125,770
- Other: $462,427
- Royalties: $416,526
- HIV Products: $1,394,098
- Others :$415,201
- Royalties: 196,873
Breakdown of profits
Breakdown of employees
- John C. Martin, PhD, President and Chief Executive Officer
- Norbert W. Bischofberger, PhD, Executive Vice President, Research and Development
- John F. Milligan, PhD, Executive Vice President and Chief Financial Officer
- Kevin Young, Executive Vice President, Commercial Operations
- Gregg H. Alton, Senior Vice President and General Counsel
- Anthony D. Caracciolo, Senior Vice President, Manufacturing
- William A. Lee, PhD, Senior Vice President, Research
- John J. Toole, MD, PhD, Senior Vice President, Clinical Research
- Taiyin Yang, PhD, Senior Vice President, Pharmaceutical Development and Manufacturing
Board members & affiliations
- James M. Denny, Chairman, Gilead Sciences Board of Directors
- Paul Berg, PhD, Cahill Professor, Emeritus, Stanford University
- John F. Cogan, PhD, Senior Fellow, Hoover Institution, Stanford University
- Etienne F. Davignon, Vice-Chairman, Suez-Tractebel
- John C. Martin, PhD, President and Chief Operating Officer, Gilead Sciences
- Gordon E. Moore, PhD, Chairman Emeritus, Intel Corporation
- Nicholas G. Moore, Retired Global Chairman, PricewaterhouseCoopers
- George P. Shultz, PhD, Distinguished Fellow, Hoover Institution, Stanford University
- Gayle Edlund Wilson, Director, Education Financing Foundation of California and Ralph M. Parsons Foundation
Political & public influence
In 2006, Gilead spent $810,000 on lobbing, a 40% increase in their annual lobbying expenses.
In the first half of 2007 they had already spent $380,000 more on lobbying. Their efforts were primarily directed at issues of international health and intellectual property rights and AIDS-related public health programs.
Social responsibility initiatives
- In May 2006, Gilead reached an agreement with the Brazilian Health Ministry to reduce the price of Viread by approximately 50%. This occurred in response to the Brazilian government considering issuing compulsory license to permit the manufacture of otherwise patented products aimed at HIV treatment.
Articles and resources
Related SourceWatch articles
- 2006 Fortune 500
- Business 2.0 100 Fastest Growing Tech Companies
- Yahoo Financial Report
- Gilead Sciences 2006 Annual Report, filed April 10, 2007
- Gilead Press Release, “Donald H. Rumsfeld Named Chairman of Gilead Sciences”
- Schwartz, Nelson D. “Rumsfeld's growing stake in Tamiflu”, CNN, Oct 31, 2005.
- Pollack, Andrew. “FDA Backs AIDS Pill to Be Taken Once a Day”, NY Times, July 12, 2006.
- Gilead Press Release
- Gilead Press Release
- Press Release, “ Diatos Announces Acquisition of Specialty Cancer Product DaunoXome® from Gilead” March, 28, 2006.
- Gilead Press Release, “Gilead Sciences and NeXstar Pharmaceuticals to Merge”, March 1, 1999.
- Gilead Press Release, “Gilead Sciences to Acquire Triangle Pharmaceuticals for $464 Million”, Dec. 4, 2004.
- Gilead Sciences (2006-06-06). "Gilead Sciences to Acquire Degussa's Raylo Chemicals Inc.; Purchase to Expand Gilead's Manufacturing Scale-Up Capacity for Investigational Therapies". Press release. Retrieved on 2007-08-15.
- Gilead Sciences 10-K March, 3 2006
- FDA Approved Drug Products
- Gilead, 2006 10-K
- Gilead Sciences 2006 10-K
- Yahoo Financial Profile
- Forbes Executive Pay Report
- Sourcewatch Report on Gilead
- Yahoo Financial Report
- Bernadette Tansey, "Gilead grows up. Visionary biotech startup matures into pragmatic industry leader," San Francisco Chronicle, April 14, 2003.
- "EBay halts bird flu drug auction. Says sale of prescription drugs is banned as price for Tamiflu soars," Reuters (CNN/Money), October 18, 2005.
- Kevin Freking, "Roche Increasing Tamiflu Production," Associated Press (Yahoo! News), October 21, 2005.
- "Tamiflu Gilead Chair Was ... Rummy," FreeMarketNews.com, October 21, 2005. re Donald H. Rumsfeld
- Joseph Mercola, "Who Owns the Rights on Tamiflu: Rumsfeld To Profit From Bird Flu Hoax," Global Research, October 26, 2005.
- "Roche probes Tamiflu outsourcing," Reuters (CNN/Money), October 27, 2005: "Drug company says it will meet with generic producers interested in making the bird flu treatment."