Q1 2009 Earning Report of Gilead Sciences Inc

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April 21, 2009April 21, 2009

Q1 2009 Earnings ResultsConference Call and Webcast

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Forward-looking Statement and GAAP Reconciliation

Forward-looking StatementStatements included in this presentation that are not historical in nature are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Gilead cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially. Gilead directs readers to its Annual Report on Form 10-K for the year ended December 31, 2008 and its subsequent current reports on Form 8-K. Gilead claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. All forward-looking statements are based on information currently available to Gilead, and Gilead assumes no obligation to update any such forward-looking statements.

GAAP ReconciliationThis presentation contains references to financial measures for Gilead that are on a non-GAAP basis. Gilead provides a reconciliation between GAAP and non-GAAP in our press releases which are available on our website at www.gilead.com.

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Q1 2009 Earnings Call Agenda

♦ Corporate HighlightsJohn Martin, PhD, Chairman and CEO

♦ Financial PerformanceRobin Washington, SVP and CFO

♦ Commercial UpdateKevin Young, EVP of Commercial Operations

♦ R&D UpdateNorbert Bischofberger, PhD, EVP of R&D and CSO

♦Upcoming Growth DriversJohn Milligan, PhD, President and COO

♦ Q&A

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Corporate HighlightsJohn Martin, PhD, Chairman and CEO

April 21, 2009April 21, 2009

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Gilead Completes Acquisition of CV Therapeutics on April 17, 2009

♦ Ranexa for chronic angina with new, stronger US label– Specialty sales force detailing cardiologists

♦ Lexiscan opportunity in EU♦ Proven development and regulatory organization

– Improved opportunity for Letairis and darusentan♦ Pipeline of cardiovascular products♦ Improved future earnings profile and growth rate

Vision for CV Therapeutics: Bolsters Gilead’s Presence in the

Cardiovascular Space

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Strong Geographical Presence Around the World

Australia/New Zealand

IrelandU.K.

Portugal

Germany

Switzerland

Austria

ItalyGreece

TurkeyDurham, NC

Westminster, CO

San Dimas, CA

Foster City, CAPalo Alto, CA

Edmonton, Albertaand Mississauga, ON

Seattle, WA

LEGEND

Respiratory Research

Antiviral Research

Cardiovascular Research

Manufacturing Operations

Sales and Marketing Operations

HQ, Manufacturing Operations, Antiviral Research *Includes Field Employees

China

France

Spain

Belgium

Sweden

Denmark

Norway

FinlandThe Netherlands

Gilead Locations

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Research and DevelopmentNorbert Bischofberger, PhD,

EVP of R&D and CSO

April 21, 2009April 21, 2009

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Gilead’s Platform Spans Four Therapeutic Areas

AtriplaAtriplaTruvadaTruvadaVireadViread

EmtrivaEmtrivaElvitegravir Elvitegravir (Ph III)(Ph III)

Integrase FDRIntegrase FDR (Ph II)(Ph II)GS 9350 GS 9350 (Ph I)(Ph I)

Ranexa Ranexa -- AnginaAngina

Letairis Letairis -- PAHPAHCicletanineCicletanine -- PAH (Ph II)PAH (Ph II)

Lexiscan Lexiscan -- MPIMPI

DarusentanDarusentan-- Resistant Resistant

HypertensionHypertension(Ph III)(Ph III)

AdentriAdentri-- Acute Heart Failure Acute Heart Failure

(Ph III)(Ph III)

Tecadenoson Tecadenoson -- Atrial Fibrillation (Ph II)Atrial Fibrillation (Ph II)

CVT3619CVT3619-- Diabetes (Ph I)Diabetes (Ph I)

Tamiflu Tamiflu -- InfluenzaInfluenza

Aztreonam Lysine Aztreonam Lysine -- CF (Ph III)CF (Ph III)

-- BronchiestasisBronchiestasis (Ph II)(Ph II)

GS 9310 / 11 GS 9310 / 11 -- CF (Ph II)CF (Ph II)GS 9411 GS 9411 -- CF (Ph I)CF (Ph I)

Ambrisentan Ambrisentan -- IPF (Ph III) IPF (Ph III)

CVTCVT--68836883-- Pulmonary DiseasesPulmonary Diseases

(Ph I)(Ph I)

Hepsera Hepsera -- HBVHBVViread Viread -- HBVHBV

GS 9450 GS 9450 -- HCV (Ph II) HCV (Ph II) GS 9190 GS 9190 -- HCV (Ph II)HCV (Ph II)

GS 9450 GS 9450 -- NASH (Ph II)NASH (Ph II)

HIV/AIDSHIV/AIDS CardiovascularCardiovascular/ Metabolic/ MetabolicRespiratoryRespiratoryLiver DiseaseLiver Disease

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Darusentan for Resistant Hypertension

♦ Positive DAR 311 top-line results announced on 4/2/09, full data to be presented at ASH on 5/8/09 in San Francisco, CA

– Met co-primary efficacy endpoints of change from baseline to week 14 in trough sitting systolic blood pressure (SBP) and trough sitting diastolic blood pressure (DBP) (p<0.001 for all darusentan groups)

Placebo 50 mg 100 mg 300 mg

SBP from baseline 8.6 mmHg 16.5 mmHg 18.1 mm Hg 18.1 mm Hg

Reductions in mean trough sitting DBP from baseline

5.3 mmHg 10.1 mmHg 9.9 mmHg 10.7 mmHg

Peripheral edema 17% 32% 36% 29%

Discontinued due to edema 0% 1.2% 4.9% 5.9%

Decreases in hemoglobin 0.19 g/dL 0.92 g/dL 0.93 g/dL 1.08 g/dL

Decreases in hematocrit 0.89% 2.89% 2.54% 2.88%

Serum aminotransferase concentrations (>3x upper limit of normal range)

1 patient 0 1 patient 1patient

♦ DAR 312* double-blinded, 14-week, placebo and active comparator (guanfacine) study in patients taking full doses of three or more antihypertensive agents, including a diuretic

– n=770; 90% enrolled, data early 2010* As of April 2, 2009

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Financial PerformanceRobin Washington, SVP and CFO

April 21, 2009April 21, 2009

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Financial Highlights: A Snapshot of Q1 2009

♦ Total revenues were up 22 percent over Q1 2008

♦ Net income attributable to Gilead per diluted share of $0.63; Non-GAAP net income attributable to Gilead per diluted share of $0.66*

♦ $3.6 billion in cash, cash equivalents and marketable securities as of March 31, 2009

♦ Cash flow from operations of $641.3 million

* Excludes after-tax stock-based compensation expense

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$0.46$0.53

$0.66

$0.00

$0.25

$0.50

$0.75

Q1

200720082009

♦ Q1 2009 increase of 24% over Q1 2008

Note: Non-GAAP EPS for all periods exclude after-tax stock-based compensation expenseOn January 1, 2009, Gilead adopted FSP APB 14-1 on a retrospective basis for its convertible senior notes. GAAP and non-GAAP net income attributable to Gilead and the per share amounts have been adjusted from that which was previously reported to reflect additional after-tax interest expense.

+24%

+16%

Financial Highlights:Non-GAAP EPS

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Financial Highlights:Total Revenues


$1,028

$1,258

$1,530

$0

$400

$800

$1,200

$1,600

Q1

200720082009

$ In Millions +22%

+22%

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$840

$1,141

$1,448

$0

$250

$500

$750

$1,000

$1,250

$1,500

Q1

200720082009

$ In Millions +27%

+36%

Financial Highlights:Total Product Sales


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$484

$606$641

$0

$250

$500

$750

Q1

200720082009

$ In Millions

+6%+25%

Note: On January 1, 2009, Gilead adopted SFAS 160 on a retrospective basis for its noncontrolling interest. Accordingly, the operating cash flow amounts have been adjusted from that which was previously reported to reflect the impact.

Financial Highlights: Operating Cash Flows

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Product Sales: Antiviral FranchiseProduct Product ($ in Millions)($ in Millions)

Q1 2009

Q12008 %▲

Antiviral Franchise♦ U.S.♦ Europe♦ Other International

$1,340.8754.0509.877.0

$1,047.7643.2349.355.2

28%

Truvada®

♦ U.S.♦ Europe♦ Other International

$590.4281.0278.430.9

$479.4238.5218.422.5

23%

57%

5%

Hepsera®


$72.725.738.98.1

$83.031.348.53.3

-12%

-14%Emtriva®


$7.23.62.41.3

$8.43.82.62.0

Atripla®


$509.9374.1124.811.0

$324.2306.514.23.5

Viread®


$160.669.665.325.7

$152.763.165.723.9

Note: Amounts may not sum due to rounding

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Other Product Sales

Product Product ($ in Millions)($ in Millions)

Q1 2009

Q1 2008 %▲

AmBisome® $64.3 $71.0 -10%

95%Letairis® $39.6 $20.3

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Royalty, Contract and Other Revenues

♦ Lower royalty, contract and other revenues are primarily due to:

– Lower Q1 2009 Tamiflu royalties of $33.2 million, down 64% from Q1 2008, partially offset by the recognition of $23.7 million of previously deferred collaboration payments from a corporate partner as we no longer have substantive ongoing performance obligations

($ in Millions)($ in Millions)Q1

2009Q1

2008 %▲

-29%Total Royalty, Contract & Other Revenues

$82.9 $116.8

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79.9% 79.1% 77.6%

0%

20%

40%

60%

80%

100%

Q1

2007 2008 2009

♦ Q1 2009 decrease from Q1 2008 driven primarily by:

– Higher proportion of Atripla sales which includes the efavirenz component at zero gross margin

Note: Non-GAAP product gross margin for all periods exclude stock-based compensation expense

Non-GAAP Product Gross Margin

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Non-GAAP R&D Expenses

♦ Higher non-GAAP R&D expenses in Q1 2009 were primarily due to:

– Increased headcount

– Increased clinical study activity


2009Q1

2008 %▲

24%Non-GAAP R&D Expenses*

$171.8 $138.4

* Excludes stock-based compensation expense

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Non-GAAP SG&A Expenses

♦ Higher non-GAAP SG&A expenses in Q1 2009 were primarily due to:

– Increased headcount


2009Q1

2008 %▲

3%Non-GAAP SG&A Expenses*

$183.1 $177.4

* Excludes stock-based compensation expense

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Other Selected Financial InformationMar. 31,

2009Dec. 31,

2008

Cash, Cash Equivalents & Marketable Securities ($ in Millions)

$3,608.9 $3,239.6

Days Sales Outstanding (Accounts Receivable) 63 65

Common Shares Repurchased During the Quarter ($ in Millions)*

$230.0 $753.5

Diluted Shares Used in Per Share Calculation for the Quarter (GAAP) (In thousands)

942,479 942,837

Inventories ($ in Millions) $936.7 $927.9

* As of March 31, 2009, the remaining authorized amount of share repurchases that may be made under the current share repurchase program that expires in December 2010 was $768 million.

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Effective Tax Rate

♦ Q1 2009 effective tax rate decreased over Q1 2008 primarily due to:

– Extension of federal R&D tax credit

– Increased earnings in lower tax rate jurisdictions

Q12009

Q12008

Effective Tax Rate 26.3% 27.9%

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Commercial UpdateKevin Young, EVP of Commercial Operations

April 21, 2009April 21, 2009

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HIV/AIDS Japan Tobacco (Japan)

Severe Fungal InfectionsAstellas (US and Canada)Sumitomo (Japan)

CMV Retinitis/AIDS

Influenza A & B Roche (Worldwide)

HIV/AIDS Japan Tobacco (Japan)

Age-related Macular DegenerationOSI (US) / Pfizer (OUS)

Chronic Hepatitis BGSK (Asia, Latin America)

HIV/AIDS Japan Tobacco (Japan)Chronic Hepatitis B

12 Products Contributing to Revenue Stream Through Direct Sales or Partner Promotion

HIV/AIDS Bristol-Myers Squibb (US and EU) Merck (Developing Countries)

Pulmonary Arterial HypertensionGSK (EU)

Chronic AnginaMenarini (EU)

Myocardial Perfusion ImagingAstellas (US and Canada)

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HIV Franchise Highlights

U.S.♦ >70% of all treated patients received Gilead HIV products♦ >80% of treatment naïve patients started therapy on a Gilead

product♦ Atripla was the most prescribed regimen in HIV

(31% of all patients)♦ Truvada remained the most prescribed product in HIV

(35% of all patients)EU♦ Atripla is reimbursed in 15 countries, including all of the Big 5♦ Truvada continued to build on its solid base as the #1 brand in all

Big 5 markets♦ >70% of all patients initiating therapy received a Tenofovir-

containing regimenU.S. data from Synovate Healthcare U.S. HIV Monitor Q4 2008EU data from IMS/GERS & Synovate Q4 2008* Including developing world

Around the World, More than One Million Individuals Received One of Gilead’s Four HIV Medications*

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U.S. HIV Market Dynamics

Sources:* October, 2008 CDC estimates as of the end of 2006** Synovate Healthcare U.S. HIV Monitor Q4 2008 growth rate calculated as moving annual total

0

200

400

600

800

1,000

1,200

1,400

HIV Infected* Diagnosed* On AntiretroviralTreatment**

On Atripla, Truvadaor Viread**

Patie

nts

in 0

00s

1,056 – 1,156

835 – 915

565

409

Significant Opportunity Remains to Grow Market by Increasing Diagnosis and Bringing Patients onto Therapy

Significant Opportunity Remains to Grow Market by Increasing Diagnosis and Bringing Patients onto Therapy

~79%

~62%~72%

Up 7%

^ Growth rate calculated as MAT (moving annual total)

^

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0

200

400

600

HIV Infected* Diagnosed* On AntiretroviralTreatment**

On Atripla, Truvadaor Viread**

Patie

nts

in 0

00s

Sources:* National Surveillance Units per country & ECDC Q4 2008** IMS/GERS & Synovate Q4 2008

557

377

273

166

Similar Dynamics as Seen in the U.S. with Strong Support in the EU for Increased Testing Initiatives and Early Treatment

EU Big 5 HIV Market DynamicsSimilar Dynamics as Seen in the U.S. with

Strong Support in the EU for Increased Testing Initiatives and Early Treatment

~68%

~72%

~61%

Up 7%^

^ Growth rate calculated as MAT (moving annual total)

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Viread for Hepatitis B: Rapidly Gaining Market Share in the U.S.

Weekly Gilead HBV Franchise NRx Market Share Has Grown from 43% to 51% Since Launch of Viread*

Source:Weekly Wolters Kluwer Health (WKH) Prescriber data*Gilead Proprietary Method of estimating Viread market share

0%

5%

10%

15%

20%

25%

30%

35%

40%

7/4/08

7/18/0

88/1

/088/1

5/08

8/29/0

89/1

2/08

9/26/0

810

/10/08

10/24

/0811

/7/08

11/21

/0812

/5/08

12/19

/081/2

/091/1

6/09

1/30/0

92/1

3/09

2/27/0

93/1

3/09

3/27/0

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Hepsera 25%

Baraclude 33%

Viread* 26%

Epivir 14%

Tyzeka 3%

30

0

500

1,000

1,500

2,000

HBV Chronically Infected* Diagnosed** On Oral AntiviralTreatment**

Patie

nts

in 0

00s

2,000

30062

~15%~21%

U.S. HBV Market Dynamics

Sources:*CDC 12/4/08 Institute of Medicine presentation ** Based on Gilead estimates as of Q1 2009

Approximately 1 in 10 Asian Americans is Living with Chronic Hepatitis B

Approximately 1 in 10 Asian Americans is Living with Chronic Hepatitis B

Up 13% Y/Y

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Viread for HBV Launch Update

1H081H08 2H082H08 20092009

TurkeyCanada

UK

Denmark, Finland, Norway and Sweden

Netherlands

ItalyFrance

PortugalGreece

New ZealandUnited StatesGermany

AustraliaSpainAustria

EU Approval on April 25, 2008 U.S. Approval on August 11, 2008

EU Approval on April 25, 2008 U.S. Approval on August 11, 2008

As of March 31, 2009

BelgiumPoland

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♦ PAH afflicts ~200K patients worldwide, ~75 - 90K in the U.S.– ~5K newly diagnosed per year in the U.S.

♦ Marketed in the U.S. by Gilead; in EU by GSK as Volibris®

♦ Approximately 1out of every 3 U.S. patients receiving an ERA received Letairis at the end of Q1 09

♦ ~30% of all U.S. patients taking Letairis had switched from bosentan

♦ Physician prescribing base nearly doubled over past 12 months♦ Phase IV trial ongoing along with 17 investigator initiated studies

Source:Gilead conducted physician survey as of March 31, 2009

Letairis for Pulmonary Arterial Hypertension

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Upcoming Growth DriversJohn Milligan, PhD, President and COO

April 21, 2009April 21, 2009

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Anticipated Pipeline Milestones in 2009HIV/AIDSHIV/AIDS

Q1 09 Present PK data from both GS 9350 and integrase FDR at CROI

Q2 09 Initiate Ph II in treatment-naïve HIV patients

GS 9450 Q2 09 Initiate Ph IIb in HCV

GS 9350/ Elvitegravir/ Truvada

GS 9350 Q2 09 Initiate Ph II as a pharmacokinetic enhancer in a PI based regimen

Liver DiseaseLiver Disease

Q4 09 Complete Ph IIa in NASH

RespiratoryRespiratoryQ2 09 Complete Ph IGS 9411

Ambrisentan Q2 09 Initiate Ph III study in pulmonary hypertension associated with IPFPresent ARIES-3 data at ATS meeting

Darusentan Q2 09 Complete and release data from DAR 311 Ph III study in resistanthypertension (presentation at ASH)

Q4 09 Complete DAR 312 Ph III study in resistant hypertension

Cicletanine Q1 09 Initiate Ph II in PAHCardiovascularCardiovascular

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Gilead’s Strengths to Drive Growth

♦ Significant growth drivers for antiviral franchise♦ Research and development strength, with cardiovascular

efforts augmented with the acquisition of CV Therapeutics♦ Numerous presentations at upcoming scientific

conferences♦ Demonstrated track record bringing forward “best-in-class”

compounds♦ Unique organizational structure♦ Strong balance sheet

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Q&A

April 21, 2009April 21, 2009

Economy & Finance

Q1 2009 Earning Report of Gilead Sciences Inc