THE BUSINESSWEEK 50 RANKINGS + 25

3

Gilead Sciences

It wasn’t easy for Gilead’s scientists to combine three HIV drugs into one pill. But once they did, the payoff was swift and clear as patients grabbed the opportunity to cut down on the piles of medications they have to take each day. The product, called Atripla, hit the market in July, 2006, and brought in sales of $205.7 million through December—a strong launch for a drug that analysts estimate could become a $2 billion-a-year hit. Gilead was already a powerhouse among providers of HIV treatments. Its other products to fight the virus drove sales up an average 51.8% a year for the past three years. In October, CEO John Martin made a big push to diversify beyond HIV treatments, paying $2.5 billion for biotech company Myogen. That company’s experimental drug to treat a rare form of hypertension could be approved by the FDA later this year. Gilead is also working on new drugs to treat cystic fibrosis and hepatitis.

Overall Grade

A

Market Data

GILD

Market Value
(2/28/2007)

$33.0 Billion

Profitability*

40.5%

A

Sales Growth Rate**

51.8%

A

12-Month Sales

$3.0 Billion

12-Month Net Income

$-1.2 Billion

Total Return Past 12 Months

14.9%

Past 36 Months

163.7%

Economic SectorHealth Care
IndustryBiotechnology
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.
***Inclusion of a one-time R&D charge and other special items would result in a net loss of $1.2 billion.

John C. Martin

John C. Martin, 55

CEO since 1996


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Data as of 2/28/07 provided by Standard & Poor's Compustat