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Gilead Sciences

Product revenues rise, offset by drop in Tamiflu royalties

Gilead Sciences 4Q10

4Q Revenues: $2.0 billion (-1%)

4Q Earnings: $629 million (-22%)

FY Revenues: $7.9 billion (+13%)

FY Earnings: $2.9 billion (+10%)

Comments: The drop in 4Q revenues was due primarily to reduced Tamiflu revenues from the company’s royalty agreement with Roche; 4Q10 royalty revenues fell to $21.9 million from $194.1 million. Product sales rose 7% in 4Q10 to $1.9 billion, due mainly to the antiviral franchise. For FY10, product revenues were up 14% to $7.4 billion.

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