Analyst Conference Summary
|Revenues by product (millions):|
y/y increase 13%
$860.6 million in operating cash flow. $200 million was used to pay down half of credit facility. Cash balance was $3.29 billion. Stock buy back program continues.
Foreign exchange impact was negative $51 million for revenues, negative $22 million for pre-tax earnings.
Inventories at distributors returned to normal levels.
571,000 U.S. patients are on anti-retroviral therapy. 180,000 are on Atripla, and it had about 50% of treatment-naive patients. In Europe Truvada led. Atripla being rapidly adopted in France, set for launch in three more nations soon.
Viread being rapidly adopted for Hepatitis B.
Ranexa for chronic angina sales force hired, trained, and released to the field.
Darusentan for resistant hypertension pivotal Phase III data demonstrating efficacy was published.
Cayston (Aztreonam Lysine) pathway to regulatory approval in the United States is being developed. It has already received conditional marketing approval in Canada.
GS91-90 being trialed for Hepatitis C, but refocussing on combining with GS92-56; not releasing data yet.
Sales guidance versus inventory? In Q2 there was a 4 day buildup due to anticipated price increases. Back to normal now. $6.35 billion guidance is actually up $150 million for prior guidance for full 2009.
R&D expense guided down? We achieved lower spending by driving synergies on acquisition of CV Therapeutics. We delayed some planned trials, like one 91-90 trial. We have a lot of exciting opportunities in the pipeline, we will make wise choices investing in them.
91-90 data? We have good enough data on safety to go ahead and enter into combination studies.
Cash use going forward? We are looking at potential opportunities to in-license or acquire new therapies. We have and will continue to look at stock buy back programs. $860 million this quarter is higher than usual, and some cash is overseas so cannot be used as flexibly.
Economic impact on sales, safety net programs? Patient assistance programs have not seen increased demand over the last 5 quarters. Only increase was recently for Viread for Hepatisis B. The economy does not seem to be having an impact on our business. A new bill in Congress will extend funding for four years of treatment and increased HIV testing.
GS93-50 is very pH solubility dependent. The letter to investigators is to try to keep patient stomach pH's from being changed by antacids, etc. Study is on track and should continue.
Tamiflu thoughts? We have to leave that to Roche. We are pleased with Roche's efforts.
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Copyright 2009 William P. Meyers