Gilead Announces Second Quarter 1997 FinancialResults.

FOSTER CITY, Calif.--(BW HealthWire)--July 24, 1997--Gilead Sciences Inc. (NASDAQ:GILD) announced today its results of operations for the second quarter ended June 30, 1997.

For this quarter, the Company reported net revenues from product sales of $3,956,000, and other revenues of

This compares to revenues from product sales of $1,403,000, and other revenues of $803,000, for total revenues of $2,206,000 and net interest income of $3,740,000 for the same quarter in 1996. The net income for the three months ended June 30, 1997, was $2,711,000 or $0.09 per share, compared to a net loss of $12,158,000 or $0.43 per share for the same quarter in 1996.

The net revenues from product sales were derived from VISTIDE(R) (cidofovir injection), which Gilead markets independently in the United States for the treatment of cytomegalovirus (CMV) retinitis in patients with AIDS. Other revenues for the quarter were derived from collaborative agreements with corporate partners.

During the quarter, Gilead received a $10 million milestone payment from Pharmacia & Upjohn S.A. following the marketing authorization of VISTIDE in the European Union. Pharmacia & Upjohn has exclusive rights to market VISTIDE in all countries outside the United States.

In addition, Gilead received a $3 million milestone payment from F. Hoffmann-La Roche associated with the collaboration between Gilead and Roche to develop orally administered compounds for the treatment and prevention of viral influenza. Gilead and Roche are now testing GS 4104 in Phase II human studies in the United States.

Gilead also reported its results of operations for the six months ended June 30, 1997. The Company reported net revenues from product sales of $6,990,000, and other revenues of $18,201,000, for total revenues of $25,191,000 and net interest income of $8,201,000 for this period. This compares to revenues from product sales of $1,403,000, and other revenues of $1,582,000, for total revenues of $2,985,000 and net interest income of $6,307,000 for the six months ended June 30, 1996.

The net loss for the six months ended June 30, 1997 was $5,237,000 or $0.18 per share, compared to a net loss of $22,960,000 or $0.85 per share for the six months ended June 30, 1996.

In addition to the $10 million cash milestone payment received upon European marketing authorization of VISTIDE during the quarter, Pharmacia & Upjohn purchased 1,133,786 shares of newly-issued Series B Preferred Stock at $35.28 per share, resulting in total proceeds to Gilead of approximately $40 million.

The purchase price for the Series B Preferred Stock represented a 45 percent premium over the average closing price of Gilead's common stock for the 30 trading days prior to the announcement of marketing authorization in the European Union. The shares issued to Pharmacia & Upjohn are not publicly registered and are convertible at any time into shares of Gilead common stock on a one-for-one basis. Pharmacia & Upjohn has agreed not to sell these shares or purchase any additional equity securities of Gilead for a period of five years.

As of June 30, 1997, Gilead had cash, cash equivalents and short-term investments of $337,354,000, compared to $295,963,000 as of December 31, 1996. This increase is primarily attributable to the sale of the Series B Preferred Stock and to the milestone payments received from corporate partners during the second quarter 1997.

The Company's profitability for the second quarter of 1997 was primarily the result of the milestone payments recognized in connection with the Pharmacia & Upjohn and Roche collaborations. The Company does not anticipate achieving profitability in the remaining quarters of this year or for the full year 1997.

Gilead Sciences is a biopharmaceutical company dedicated to the discovery, development and commercialization of treatments for human diseases. The Company's business and scientific endeavors are focused on making new therapies available to patients, physicians and the healthcare system.

Gilead's expertise has resulted in proprietary therapeutics for important viral diseases, including a currently available therapy for cytomegalovirus retinitis, and products in development to treat diseases caused by human immunodeficiency virus, hepatitis B virus, herpes simplex virus, human papillomavirus and influenza virus. Gilead's research programs seek treatments for these and other viral infections, vascular diseases and cancer. Gilead common stock is traded on The NASDAQ Stock Market under the symbol GILD. -0-

NOTE TO EDITORS: VISTIDE is a registered trademark of Gilead Sciences Inc.

Additional written materials, recent releases and company information are available through a variety of sources, including: The Gilead World Wide Web Home Page http://www.gilead.com The Gilead Fax-On-Demand Information Service: 1-800-276-7318

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                        GILEAD SCIENCES INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (in thousands, except per share amounts)
                            (unaudited)

                              Three Months Ended    Six Months Ended
                                   June 30,             June 30,
                               1997       1996      1997        1996
Revenues
 Product sales, net          $ 3,956    $ 1,403   $ 6,990     $ 1,403
 Other revenues               15,770        803    18,201       1,582
 Total revenues               19,726      2,206    25,191       2,985
Costs and expenses
 Cost of sales                   328        101       815         101
 Research and development     14,696     10,563    25,522      19,846
 Selling, general and
  administrative               6,146      7,440    12,292      12,305
  Total costs and expenses    21,170     18,104    38,629      32,252
Loss from operations          (1,444)   (15,898)  (13,438)    (29,267)
Interest income, net           4,155      3,740     8,201       6,307
Net income (loss)            $ 2,711  $ (12,158) $ (5,237)  $ (22,960)
Net income (loss) per share  $  0.09  $   (0.43) $  (0.18)  $   (0.85)
Common and common equivalent
 shares used in the
 calculation of net
 income (loss) per share      31,057     28,330    29,018      26,999


                               GILEAD SCIENCES INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (in thousands)

                                              June 30,   December 31,
                                                1997         1996
                                             (unaudited)    (note)
Assets
   Cash, cash equivalents and
      short-term investments                $  337,354    $  295,963
   Other current assets                          4,684         4,290
      Total current assets                     342,038       300,253
   Property and equipment, net                  10,458         9,172
   Other assets                                  1,464         1,248
                                            ----------    ----------
                                            $  353,960    $  310,673

Liabilities and stockholders' equity
   Current liabilities                      $   21,526    $   16,099
   Long-term obligations                         1,828         2,914
   Stockholders' equity                        330,606       291,660
                                            ----------    ----------
                                            $  353,960    $  310,673

Note:  Derived from audited financial statements at that date.

CONTACT: Gilead Sciences Inc.

Lana Lauher, 415/573-4858 (Investor Inquiries)

Laurie Hurley, 415/573-4894 (Media Inquiries)