- Record Total Revenues of $1.65 Billion, Up 29 Percent over Second Quarter 2008 -

- Record Product Sales of $1.57 Billion, Up 29 Percent over Second Quarter 2008 -

- Second Quarter EPS of $0.61 per Share -

- Second Quarter Non-GAAP EPS of $0.69 per Share –

Gilead Sciences, Inc. (Nasdaq:GILD) announced today its results of operations for the quarter ended June 30, 2009. Gilead’s operating results include the results of CV Therapeutics, Inc. (CV Therapeutics) beginning on the acquisition date of April 15, 2009. Total revenues for the second quarter of 2009 were $1.65 billion, up 29 percent compared to total revenues of $1.28 billion for the second quarter of 2008. Net income attributable to Gilead for the second quarter of 2009 was $571.4 million, or $0.61 per diluted share. Net income attributable to Gilead for the second quarter of 2008 was $434.8 million, or $0.45 per diluted share. Non-GAAP net income attributable to Gilead for the second quarter of 2009, which excludes after-tax acquisition-related expenses, restructuring expenses and stock-based compensation expenses, was $648.9 million, or $0.69 per diluted share. Non-GAAP net income attributable to Gilead for the second quarter of 2008, which excludes after-tax stock-based compensation and purchased in-process research and development (IPR&D) expenses of $34.2 million, was $469.0 million, or $0.48 per diluted share.

Product Sales

Product sales increased 29 percent to a record $1.57 billion for the second quarter of 2009, compared to $1.22 billion in the second quarter of 2008. This was driven primarily by Gilead’s antiviral franchise, including the strong growth in sales of Atripla^® (efavirenz 600 mg/ emtricitabine 200 mg/ tenofovir disoproxil fumarate 300 mg), as well as continued growth in sales of Truvada^® (emtricitabine/tenofovir disoproxil fumarate).

Antiviral Franchise

Antiviral product sales increased 26 percent to $1.41 billion in the second quarter of 2009 from $1.12 billion for the same quarter of 2008. The increase was driven primarily by sales volume growth of Atripla and Truvada.

• Truvada

Truvada sales increased 18 percent to $608.1 million for the second quarter of 2009 from $516.1 million in the second quarter of 2008, driven primarily by sales volume growth in the United States and Europe.

• Atripla

Atripla sales increased 60 percent to $569.1 million for the second quarter of 2009 from $355.1 million in the second quarter of 2008, driven primarily by sales volume growth in the United States and Europe.

• Other Antiviral Products

Other antiviral product sales, including Viread^® (tenofovir disoproxil fumarate), Hepsera^® (adefovir dipivoxil) and Emtriva^® (emtricitabine), decreased six percent to $233.1 million for the second quarter of 2009 from $249.1 million in the second quarter of 2008, driven primarily by sales volume decreases in Hepsera , partially offset by sales volume increases in Viread.

Letairis

Sales of Letairis^® (ambrisentan) for the treatment of pulmonary arterial hypertension increased 79 percent to $44.1 million for the second quarter of 2009 from $24.7 million for the second quarter of 2008, driven primarily by sales volume growth in the United States.

Ranexa

Sales of Ranexa^® (ranolazine) for the treatment of chronic angina were $36.1 million from April 15, 2009, the acquisition date of CV Therapeutics, to June 30, 2009.

Royalty, Contract and Other Revenues

Royalty, contract and other revenues resulting primarily from collaborations with corporate partners were $78.8 million for the second quarter of 2009, an increase of 29 percent from $60.9 million in the second quarter of 2008. This increase was driven primarily by higher Tamiflu^® (oseltamivir phosphate) royalties from F. Hoffmann-La Roche Ltd of $51.9 million in the second quarter of 2009, compared to Tamiflu royalties of $37.5 million in the second quarter of 2008 resulting from increased sales related to pandemic planning initiatives worldwide.

Research and Development

Research and development (R&D) expenses in the second quarter of 2009 were $241.6 million compared to $176.5 million for the second quarter of 2008. Non-GAAP R&D expenses for the second quarter of 2009, which exclude restructuring and stock-based compensation expenses, were $206.1 million compared to $161.2 million for the second quarter in 2008, which exclude stock-based compensation expenses. This increase was primarily a result of higher headcount from the acquisition of CV Therapeutics, the overall growth in Gilead’s business and increased clinical study activity.

Selling, General and Administrative

Selling, general and administrative (SG&A) expenses in the second quarter of 2009 were $261.4 million compared to $219.5 million for the second quarter of 2008. Non-GAAP SG&A expenses for the second quarter of 2009, which exclude acquisition-related transaction costs, restructuring and stock-based compensation expenses, for the second quarter of 2009 were $213.2 million, compared to $200.9 million for the same quarter in 2008, which exclude stock-based compensation expenses. The increase was primarily due to higher headcount and expenses from the CV Therapeutics acquisition.

Net Foreign Currency Exchange Impact

The net foreign currency exchange impact on second quarter 2009 revenues and pre-tax earnings, which includes revenues and expenses generated from outside the United States, was an unfavorable $50.0 million and $18.4 million, respectively, compared to the second quarter of 2008.

Cash, Cash Equivalents and Marketable Securities

As of June 30, 2009, Gilead had cash, cash equivalents and marketable securities of $2.90 billion compared to $3.24 billion as of December 31, 2008. This decrease was primarily due to cash paid to acquire CV Therapeutics, partially offset by cash flows generated from operations. For the first six months of 2009, Gilead generated $1.26 billion of operating cash flows including $622.9 million in the second quarter of 2009.

Acquisition of CV Therapeutics

In April 2009, Gilead acquired CV Therapeutics, a biopharmaceutical company based in Palo Alto, California, for $1.39 billion. Gilead allocated the purchase price in accordance with Statement of Financial Accounting Standards (SFAS) No. 141(R), “Business Combinations” (SFAS 141R) and recorded $951.2 million in intangible assets relating to marketed products, which constituted a significant portion of the purchase price allocation. The results of operations for CV Therapeutics have been included in Gilead’s consolidated operating results beginning on April 15, 2009.

Adoption of New Accounting Pronouncements

On January 1, 2009, Gilead adopted Financial Accounting Standards Board Staff Position APB No. 14-1, “Accounting for Convertible Debt Instruments That May Be Settled In Cash Upon Conversion (Including Partial Cash Settlement)” (FSP APB 14-1) and recorded additional after-tax interest expense for the second quarter of 2009 of $8.5 million. FSP APB 14-1 requires retrospective application upon adoption; therefore, net income attributable to Gilead for the second quarter of 2008 has been adjusted from that which was previously reported to reflect additional after-tax interest expense of $8.0 million.

On January 1, 2009, Gilead adopted Statement of Financial Accounting Standards No. 160, “Noncontrolling Interests in Consolidated Financial Statements, an amendment of Accounting Research Bulletin No. 51, Consolidated Financial Statements” (SFAS 160), and reflected the change in presentation of the noncontrolling interest (formerly minority interest) on a retrospective basis in our financial statements.

Product and Pipeline Update

Antiviral Franchise

In April 2009, Gilead announced that it had begun enrolling patients in a Phase II clinical trial of its investigational integrase-based, single-tablet, once-daily regimen of elvitegravir, GS 9350 and Truvada for the treatment of HIV-1 infection. Shortly thereafter, the company also initiated a Phase II clinical trial evaluating the safety and efficacy of GS 9350-boosted atazanavir compared to ritonavir-boosted atazanavir each in combination with Truvada for the treatment of HIV-1 infection. Both studies were fully enrolled during the quarter.

Cardiovascular Franchise

In April 2009, Gilead released top-line data from DAR-311 (DORADO), a Phase III clinical trial evaluating the company’s once-daily oral endothelin receptor antagonist darusentan as an add-on treatment for resistant hypertension. The full study results were presented during an oral late-breaker session at the annual meeting of the American Society of Hypertension in San Francisco in early May.

In May 2009, Gilead announced results from ARIES-3, an open-label, single-arm, Phase III study evaluating the efficacy and safety of ambrisentan in patients with pulmonary hypertension. These data were presented at the 2009 American Thoracic Society International Conference in San Diego.

Also in May, Gilead announced that the company’s Marketing Authorisation Application (MAA) for regadenoson, an investigational pharmacologic stress agent for radionuclide myocardial perfusion imaging, was validated and accepted for review by the European Medicines Agency (EMEA).

Respiratory Franchise

In June 2009, Gilead announced that the Committee for Medicinal Products for Human Use, the scientific committee of the EMEA, adopted a positive opinion on the company’s MAA for aztreonam lysine 75 mg powder and solvent for nebuliser solution (aztreonam lysine) for the suppressive therapy of chronic pulmonary infections due to Pseudomonas aeruginosa in patients with cystic fibrosis aged 18 years and older.

Conference Call

At 4:30 p.m. Eastern Time today, Gilead will host a conference call and a simultaneous webcast to discuss the results of its second quarter of 2009. During this call/webcast, Gilead’s management will discuss the company’s second quarter of 2009 results and provide a general business update. The webcast will be available live via the internet by accessing Gilead’s website at www.gilead.com. To access the webcast, please connect to the company’s website at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be needed to hear the webcast. Alternatively, please call 1-800-510-9836 (U.S.) or 1-617-614-3670 (international) and dial the participant passcode 39199252 to access the call.

A replay of the webcast will be archived on the company’s website for one year, and a phone replay will be available approximately two hours following the call through July 24, 2009. To access the phone replay, please call 1-888-286-8010 (U.S.) or 1-617-801-6888 (international) and dial the participant passcode 22207776.

About Gilead

Gilead Sciences is a biopharmaceutical company that discovers, develops and commercializes innovative therapeutics in areas of unmet medical need. Gilead’s mission is to advance the care of patients suffering from life-threatening diseases worldwide. Headquartered in Foster City, California, Gilead has operations in North America, Europe and Australia.

Non-GAAP Financial Information

Non-GAAP net income attributable to Gilead and net income attributable to Gilead per diluted share for the three and six months ended June 30, 2009 are presented excluding the after-tax impact of acquisition-related transaction costs, amortization of inventory mark-up and amortization of purchased intangibles; restructuring expenses; and stock-based compensation expenses, and have been adjusted for the application of APB 25 in computing non-GAAP dilutive securities. Non-GAAP net income attributable to Gilead and net income attributable to Gilead per diluted share for the three and six months ended June 30, 2008 are presented excluding the after-tax impact of stock-based compensation expenses and purchased IPR&D expense, and have been adjusted for the application of APB 25 in computing non-GAAP dilutive securities. Non-GAAP R&D expenses for the three and six months ended June 30, 2009 are presented excluding the impact of restructuring expenses and stock-based compensation expenses. Non-GAAP SG&A expenses for the three and six months ended June 30, 2009 are presented excluding the impact of acquisition-related transaction costs, restructuring expenses and stock-based compensation expenses. Non-GAAP R&D expenses and SG&A expenses for the three and six months ended June 30, 2008 are presented excluding the impact of stock-based compensation expenses. Management believes this non-GAAP information is useful for investors, taken in conjunction with Gilead’s GAAP financial statements, because management uses such information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of Gilead’s operating results as reported under United States generally accepted accounting principles.

Forward-looking Statements

Statements included in this press release 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 that could cause actual results to differ materially. These risks and uncertainties include: Gilead’s ability to sustain growth in revenues for its antiviral and cardiovascular franchises; unpredictable variability of Tamiflu royalties and the strong relationship between this royalty revenue and global pandemic planning and supply; Gilead’s ability to receive regulatory approvals in a timely manner or at all, for new and current products, including GS 9350, a single-tablet fixed-dose regimen containing elvitegravir, GS 9350 and Truvada, darusentan, ambrisentan for pulmonary hypertension, regadenoson, or aztreonam lysine; Gilead’s ability to successfully commercialize any products that receive regulatory approvals; Gilead’s ability to successfully develop its respiratory and cardiovascular franchises; initiating and completing clinical trials may take longer or cost more than expected; fluctuations in the foreign exchange rate of the U.S. dollar that may reduce or eliminate the favorable foreign currency exchange impact on Gilead’s future revenues and pre-tax earnings; our ability to consummate additional purchases under our share repurchase program due to changes in our stock price, corporate or other market conditions; risks and uncertainties related to Gilead’s ability to successfully integrate the products and employees of Gilead and CV Therapeutics, including its ability to increase sales of CV Therapeutics’ approved products and its ability to advance pipeline programs; and other risks identified from time to time in Gilead’s reports filed with the U.S. Securities and Exchange Commission. In addition, Gilead makes estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. Gilead bases its estimates on historical experience and on various other market-specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ significantly from these estimates. You are urged to consider statements that include the words “may,” “will,” “would,” “could,” “should,” “might,” “believes,” “estimates,” “projects,” “potential,” “expects,” “plans,” “anticipates,” “intends,” “continues,” “forecast,” “designed,” “goal,” or the negative of those words or other comparable words to be uncertain and forward-looking.

Gilead directs readers to its Annual Report on Form 10-K for the year ended December 31, 2008, its Quarterly Report on Form 10-Q for the first quarter of 2009 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.

Truvada, Viread, Hepsera, AmBisome, Letairis and Ranexa are registered trademarks of Gilead Sciences, Inc.
Atripla is a registered trademark of Bristol-Myers Squibb & Gilead Sciences, LLC.
Tamiflu is a registered trademark of F. Hoffmann-La Roche Ltd.

For more information on Gilead Sciences, Inc., please visit www.gilead.com or call the Gilead Public Affairs Department at 1-800-GILEAD-5 (1-800-445-3235).

Gilead Sciences, Inc.
Robin Washington, 650-522-5688 (Investors)
Susan Hubbard, 650-522-5715 (Investors)
Amy Flood, 650-522-5643 (Media)