Beruflich Dokumente
Kultur Dokumente
REVIEW
2016
WELCOME FROM OUR CEO
This year marks Gileads 30th anniversary. I joined Gilead more than 27 years
ago as a research scientist and have worked in many different roles over the
years, completing my first year as CEO in March. Being part of a company that
has transformed care and made a difference in the lives of so many individuals is
something that I carry with me every day, as do all Gilead employees.
During my past year in this new role, Ive spent time In chronic hepatitis C (HCV), we have introduced three
meeting with people across the organization researchers, unique treatments since 2013, each one expanding the
field representatives, manufacturing team members and number of people who can be cured with direct-acting
many, many others. My most important takeaway from antiviral combination therapy. Such rapid innovation is
these interactions and the knowledge that gives me great unusual in our industry. And yet we are developing a new
confidence in Gileads future is that our nearly 9,000 combination regimen, designed specifically for use in a
employees share a drive to accomplish the same goal: to salvage setting among patients who have not been cured
develop and deliver innovative medicines that truly by existing treatments. This regimen is currently under
change lives. regulatory review and we hope to have approval later this
year. Gileads range of treatment options means that nearly
SCIENTIFIC INNOVATION every patient will have a good choice available to potentially
Its often difficult to describe what we do to people who cure them of their HCV infection, regardless of the genotype
dont see our efforts up close. I spoke recently with an of the virus or the level of disease in their liver. With tools
employee in our research organization who has dedicated like these in hand, it seems more and more possible that we
his career to improving treatment for people with HIV. Like could realize the goal of eliminating HCV.
many of us, he could not have imagined the progress that
Were making significant strides in nonalcoholic
has been made since HIV, the virus that causes AIDS, was
steatohepatitis, or NASH, which is a chronic liver disease
first identified. Since the approval of Viread in 2001, Gilead
associated with the accumulation of fat in the liver, that
has led the field, introducing multiple single tablet regimens
can lead to inflammation, progressive fibrosis and cirrhosis.
that improve and simplify the lifelong treatment that is
NASH is a growing public health concern as more and more
required to suppress the virus. Yet, we know we can do more.
individuals progress to the later, debilitating stages of fibrosis.
Our researchers continue to innovate, with an unrelenting
Patients who progress to the latest stages of disease have a
focus on how to further improve care and even, perhaps,
poor prognosis and very few options for treatment. We are
one day cure HIV. I recently watched from the audience as
targeting this smaller patient population for studies using
one of our scientists presented at a medical conference on
one of our three investigational drugs. The most advanced
groundbreaking work to develop an investigational molecule
is selonsertib, a compound that targets ASK-1, an enzyme
that inhibits HIV capsid, a novel target, and is potent enough
implicated in NASH. Last year we presented data from a
to potentially be dosed far less frequently than the daily
Phase 2 clinical study suggesting that selonsertib can reverse
therapy required today. This is just one example of the
fibrosis in patients with NASH. Two Phase 3 studies of
exciting work taking place in our laboratories every day,
selonsertib are now enrolling.
across our therapeutic areas. And it is just one example
of what we do, and how we do it, made clear through the In the area of inflammation, Phase 3 studies of filgotinib, an
dedication of our employees. investigational JAK1-selective inhibitor for inflammatory
disease indications, are now underway in rheumatoid
2
arthritis, ulcerative colitis and Crohns disease. Filgotinib leishmaniasis, a deadly parasitic infection. We are also
is being studied as a once-daily pill and the safety profile collaborating with U.S. Department of Defense, Centers for
seen in Phase 2 studies has encouraged us and our partner Disease Control and Prevention and National Institutes of
Galapagos to look at filgotinib across a range of different Health, as well as multiple academic institutions, to discover
inflammatory diseases where JAK-1 activity is implicated. and develop novel antivirals for highly pathogenic infections
We have now started or announced our intention to and neglected or emerging viral diseases. As an example,
study filgotinib in six Phase 2 clinical trials in additional GS-5734 Gileads most advanced investigational agent
inflammatory diseases. is currently being studied in Ebola survivors.
3
2016 CORPORATE SOCIAL RESPONSIBILITY HIGHLIGHTS
GIVING AND
ACCESS In 2016, Gilead partnered with more than 2016 marked the 10th year of Gileads HIV
2,000 organizations to address unmet generic licensing program, designed to
medical needs and lessen the impact of expand access for people in resource-limited
diseases such as HIV and viral hepatitis countries. In that time, we increased the
around the world. Funders Concerned About number of people receiving our antiretroviral
AIDS once again ranked Gilead as the leading therapies in the developing world from fewer
corporate funder helping to address the than 30,000 people in 2006 to 10 million
HIV/AIDS epidemic. Gileads funding totaled in 2016, representing two thirds of people
almost $460 million in cash donations. currently on HIV medicine in these regions.
PEOPLE
Gilead added inclusion to the companys Gilead added 657 jobs to local communities
core values and added two new Employee around the world in 2016, representing a year-
Resource Groups (ERGs) in 2016. This over-year growth rate of eight percent.
reinforced our commitment to workforce
diversity, which drives innovation and helps
us better serve patients.
PRODUCT
With 23 marketed products and hundreds Gileads Pharmaceutical Development
of ongoing and planned clinical studies, we and Manufacturing group made
are focused on solving some of the biggest significant progress developing new active
health challenges of today. Last year, Gilead pharmaceutical ingredient (API) process
produced and distributed 33 million bottles of improvements in 2016 for HIV and HCV
oral medicines and approximately 11 million therapies. These green chemistry
vials of liquid medicine worldwide. improvements reduce potentially harmful
materials used during manufacturing, while
increasing product yields.
ENVIRONMENT
In 2016, Gilead added an employee shuttle Gilead achieved zero waste to landfill in 2016
service, with the capacity to remove more at corporate sites in Cork, Ireland, Stockley
than 800 commuters from their cars each day. Park, UK and Cambridge, UK. At its Foster
Key benefits from the service include reducing City, California headquarters, Gilead achieved
traffic burden on local communities and air a 66 percent annual waste diversion rate.
pollutant emissions.
4
2016 FINANCIAL HIGHLIGHTS
2016 marked strong performance for Gilead, particularly in our HIV and cardiopulmonary franchises. In HIV our continued
innovation, including the introduction of two new tenofovir alafenamide-based regimens, contributed to growth.
In liver disease, we navigated through the changing dynamics of the HCV treatment landscape, where we saw rapid uptake of
products after launch as patients who had been awaiting new options sought treatment, followed by a deceleration of demand
as that group completed treatment. This caused our HCV and total revenues to increase dramatically from 2013 to 2015 and then
decline in 2016. The significant revenue and cash flows generated from this franchise provide us with critical resources needed to
invest in our internal pipeline and external opportunities in order to create long-term shareholder value.
We were operationally and financially efficient in 2016, with high operating margins and a healthy balance sheet. We continued
to return capital to our shareholders through dividends and share repurchases. Total share repurchases for 2016 were $11 billion.
2015 9 15B
Non-GAAP diluted earnings per share for
2015 exclude after-tax acquisition-related
and other expenses of $0.53 and stock- 6 10B
based compensation expenses of $0.17.
3 5B
2016
Non-GAAP diluted earnings per share
for 2016 excludes amounts related to 0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
acquisition-related, up-front collaboration,
stock-based compensation and other GAAP Non-GAAP
expenses of $1.63. diluted diluted
5
ABOUT GILEAD
COMPANY OVERVIEW
Gileads primary areas of focus currently include human
immunodeficiency virus (HIV), liver diseases such as chronic hepatitis
C virus (HCV) infection and chronic hepatitis B virus (HBV) infection,
hematology/oncology, cardiovascular and inflammation/respiratory
diseases. We seek to add to our existing portfolio of products through our
internal discovery and clinical development programs, as well as through
product acquisition and in-licensing strategies.
Many of our products are category firsts or are among the leading
medicines used to treat, cure or prevent the diseases they address. For
more information about Gilead, including detailed financial data, refer
to our 2016 Financial Highlights or the companys 2016 Form 10-K on the
Shareholder Center section of our website.
Primary Areas
of Focus Liver Diseases
Inflammation Hematology
and Respiratory and Oncology
Amber Somoza,
Gilead San Dimas
Cardiovascular HIV/AIDS
ABOUT GILEAD 6
In 2016, Gilead was ranked #1 on Business Insiders list of top companies to work for based on
how meaningful employees find their work and #2 in Barrons 2016 500 rankings.
Gilead
Operations
Gilead has employees
in almost 40 countries
worldwide, spread
across six continents
GOVERNANCE
Gileads board of directors serves stockholders by With products distributed throughout the world, Gilead, its
overseeing the management of our business. Our board affiliates and others acting on Gileads behalf are required to
has an Audit Committee, Compensation Committee, comply with all applicable anti-corruption laws. These laws
Nominating and Corporate Governance Committee and include the U.S. Foreign Corrupt Practices Act (FCPA), the
Scientific Committee. Roles and charters can be found on UK Bribery Act and other legislation. Gilead offers training
the Investors section of our website. Gileads Nominating materials to employees and other relevant individuals and
and Corporate Governance Committee has responsibility organizations to communicate Gileads prohibition against
for oversight of environmental and social governance corrupt or unethical activity.
(ESG) issues.
Gilead performs internal and external audits to monitor
Listing rules require that a majority of the members for compliance with regulatory and company policies. For
of a public companys board of directors qualify as example, audits were performed in roughly 30 countries for
independent. Our current board leadership structure financial or FCPA compliance.
provides effective oversight of management and leadership
of independent directors. At the end of 2016, two of the 10 COLLABORATIONS
active board members were Gilead employees. To remain at the forefront of innovation, Gilead collaborates
with experts who share the goals of advancing patient care.
The board of directors, senior leadership and all employees
As part of our business strategy, we establish collaborations
at Gilead are responsible for upholding the corporate
with other companies, universities and medical research
values of integrity, inclusion, teamwork, excellence and
institutions to assist in the clinical development and/or
accountability. In addition, every employee at Gilead is
commercialization of certain products and product
expected to comply with our Code of Ethics, Anti-Corruption
candidates and to provide support for our research
and Anti-Bribery Policy as well as our business conduct and
programs. Gilead also evaluates opportunities for
corporate policies.
ABOUT GILEAD 7
acquiring products or rights to products and Audit locations are selected using a risk-
technologies that are complementary to the based approach which considers a number
companys business. For more information of relevant factors.
Federico regarding these relationships, including their
Sommariva, Gilead is required to comply with federal,
Gilead Italy ongoing financial and accounting impact on
state and local regulations regarding
our business, refer to the companys 2016
workplace safety and protection of the
Form 10-K on the Shareholder Center section
environment. For example, laws and
of our website.
regulations are implemented and under
consideration to mitigate the effects of
MEMBERSHIPS
climate change caused by greenhouse gas
AND AFFILIATIONS
emissions. Our business is not considered to
Gilead maintains memberships and
be energy intensive, so we do not anticipate
affiliations with industry organizations,
being subject to a cap and trade system
trade associations and other groups to
or other mitigation measure that would
share and receive information with peers
materially impact our capital expenditures,
across our industry. Noteworthy company
operations or competitive position.
memberships or affiliations in 2016 included:
To mitigate risks associated with data
Biotechnology Industry
security, we use third-party managed
Organization (BIO)
security services to monitor cybersecurity
California Life Sciences incidents and advanced persistent threats.
Association (CLSA) We also employ in-house technology
TechNet solutions and a Security Operations Center
Diversity Alliance for Science (DA4S) to help maintain the integrity of Gileads
infrastructure and systems. In addition, we
use a combination of systems and processes
POLITICAL CONTRIBUTIONS
to comply with data protection regulations,
Gilead participates in the political process
such as the European Union Data
by contributing to state and local candidates
Protection Directive, for storage and
and political organizations when such
use of personal data.
contributions are permitted by state and
local law. In the interest of transparency for
our stockholders and other stakeholders,
ABOUT THIS REPORT
a full list of policy-related contributions
can be found on the Political Contributions The Year in Review 2016 has been
section of our website. assembled following leading industry
standards. This report provides essential
RISK MANAGEMENT information on Gileads financial,
Gileads enterprise risk management process environmental, social and governance
uses precautionary principles to identify performance and covers all entities listed
and develop action plans for material social, in the companys 2016 Form 10-K in the
environmental and economic risks. Example Shareholder Center section of our website.
risks include changes in health, safety and The performance period is January 1, 2016 to
environmental regulations, climate change, December 31, 2016.
energy supply disruptions, manufacturing
requirements, natural disasters, consumer
demand and consumer privacy. Gilead
For questions or feedback about the information
performs periodic risk-based assessments contained in Gileads Year in Review 2016, please
that consider all geographies and locations. email csr@gilead.com.
ABOUT GILEAD 8
GIVING AND
ACCESS
Luis Mendo, Chair of Grupo de With Gileads help, GAT is supporting We saw the gaps that existed and
Ativistas em Tratamentos (Group more than twenty different realized that by collaborating we could
of Activists on Treatment, or organizations operating as part of its not only share best practice between
GAT), explains why the group was network. They work together to share ourselves, but we could also really
founded: Ive been living with knowledge, support one another improve the patient experience, says
and help streamline services for Mendo. This has been invaluable
HIV and AIDS for more than 20
patients. Being part of a broader, well- in helping ensure people are able to
years now. I was also co-infected
known network also lends member access all the services they need.
with hepatitis C and was cured 18
organizations an extra degree of
months ago. My experiences as a
credibility and recognition that helps
patient showed me that here in
them in their outreach work. Network
Portugal, health services were members include centers dedicated
operating in distinct silos. You to HIV, viral hepatitis and sexually
would have testing for HIV over transmitted infections (STIs). Some
here, for HCV over there and centers also focus on underserved
the different parts of the system populations, such as men who have
werent really talking to one sex with men (MSM), migrants, people
another. who are currently injecting or have
previously used drugs, and sex workers. Luis Mendo,
Chair of GAT
Gileads Four
REDUCING DISPARITIES
Pillars of Giving
Many of Gileads therapeutic areas disproportionately affect
Reducing Disparities minorities and communities who have historically experienced
discrimination, exclusion and socioeconomic inequality. The
Joint United Nations Programme on HIV/AIDS (UNAIDS)
2016 2021 Strategy affirms that defending the rights of all
people including children, women, young people, men
Supporting who have sex with men, people who use drugs, sex workers
Providing
Local
Access and clients, transgender people and migrants is critical in
Communities
achieving health equality. We believe everyone should have
access to the same health care, regardless of
their background.
AIDS ALABAMA
WORKING TO END THE HIV EPIDEMIC IN THE
SOUTHERN UNITED STATES
AIDS Alabamas mission is two-fold: to help There was a woman who didnt know her husband
those with HIV live healthy, independent lives was HIV-positive, and he eventually died, says
and to prevent the spread of the virus. Hiers. She had also contracted the virus, and she
had a baby, who was born HIV-positive. When her
child died, she really spiraled back into drug use.
More than half of all new diagnoses in the United
States occur in southern states, and combating With the help of AIDS Alabama, this woman
the disease means addressing the many issues entered substance abuse treatment, found
that accompany it not only those which may be housing and worked as a peer mentor before
more apparent, such as stigma, homophobia and earning her college degree in social work.
drug addiction, but systemic issues of inequality
With Gileads support, AIDS Alabama has been
such as insufficient education and awareness,
able to work with patients individually: first by
homelessness or lack of access to transportation.
providing housing and transportation, then
You can have the best doctors in the world, but if by offering emotional, logistical and medical
the patients cant get to them, then it really does assistance. As for ending HIV, Hiers recognizes
no good, says AIDS Alabama CEO, Kathie Hiers. that her part of the country is now on the front
lines. If were ever going to end this thing, she
Hiers and her team see the impact of HIV every
says, weve got to go through the South to do it.
day, as well as the strength of the human spirit.
Kathie Hiers,
CEO, AIDS
Alabama
Tyra Callender,
AIDS Alabama
client
Find out more about AIDS Alabamas work by watching our video at: www.gilead.com/yir2016
Ryan Clary, Executive Director to proper testing, and if chronically Clary says that Gileads support
of the National Viral Hepatitis infected, help link them to care. They has significantly helped the NVHR
Roundtable (NVHR), found his describe their work as an uphill battle: grow their programmatic and policy
calling after the death of two loved first to help increase testing for two activities work that has not only
ones. I moved into focusing on of the major groups at risk baby changed his life, but saved countless
boomers born between 1945 and 1965, others. What weve learned, he says,
hepatitis when I was doing HIV
and people who inject drugs and is that strong community-based
work because I had two significant
second to help remove barriers to advocacy can lead to public policy
personal losses. I lost a partner to
prevention, care and treatment. changes that impact and save
hepatitis B, and I lost an uncle to
peoples lives. And that has been
hepatitis C. Clary believes that an end to the
really gratifying.
HBV and HCV epidemics are within
reach and can be achieved through
With more than 450 members, NVHR
addressing stigma and health
is the largest national coalition of
disparities. NVHR leads initiatives
community-based organizations
to identify and share best practices
working together to increase
with its members and advocates with
awareness of HBV and HCV. Clary
policymakers for funding and policies
and his team make sure that those
to increase access to screening,
at risk for these diseases have access
prevention and care.
When Paul Ash joined the In a region with one of the highest
SF-Marin Food Bank as costs of living in the country, more and
executive director 28 years ago, more people living in San Francisco
it was a scrappy, back of a and neighboring Marin County are
pickup truck kind of operation finding themselves in need of food
assistance, but stigma persists. There
with only seven employees.
are barriers for the higher-earning
Today, the organization employs
groups, says Ash. Its difficult to
135 people not only the sign of
get those folks to see themselves as
a job well done, but a symptom of
users of a charitable program. But we
a widening economic disparity in
want them to participate if they need
our society. our help. The Food Banks farmers
Archival imagery supplied by SF-Marin Food Bank
market-style distribution centers
and simple registration requirements people up to the nutritional level
help decrease the barriers real or they should be at before they receive
perceived to food assistance. treatment, or being a resource for
physicians who send their patients
Better food serves as a building block
to us, says Ash.
for better health. Produce makes
up two thirds of the Food Banks With the continued support of
distribution and the remaining third companies such as Gilead, the Food
is in the high-nutrition category. Bank plans to expand its distribution
Through partnerships with farmers, to nearly 50 million pounds of food
packers and wholesalers, the in 2017, another step forward in their
organization provides roughly 100,000 long-term fight against economic and
meals a day and reaches 225,000 health disparities. We typically dont
families a year. We also have a role in get huge touchdowns, says Ash. But
the medical system, either catching we do get a lot of three-yard gains.
Archival imagery supplied by SF-Marin Food Bank
HIV
ACCESS OPERATIONS AND
Gilead recognized that on its own, the company did not
EMERGING MARKETS (AOEM)
have sufficient capacity to meet the global needs for HIV
Gileads Access Operations and Emerging Markets (AOEM)
treatment in a cost-effective manner. For this reason,
team works to expand access to the companys medicines for
Gilead began its voluntary licensing program in 2006. Today
people living in more than 130 low, lower-middle and upper-
the company has direct partnerships with generic drug
middle income countries.
manufacturers in India, China and South Africa. 99 percent
of the companys HIV medicines used in low- and middle-
income countries is produced and sold by our voluntary
license partners.
2016 marked a significant milestone
Gilead was also the first pharmaceutical company to sign
for Gilead. It is now estimated that an agreement with the Medicines Patent Pool (MPP), an
Gileads HIV medicines are reaching organization established by the United Nations to increase
worldwide access to high-quality, low-cost antiretroviral
10 million people living in low- and
therapy through the sharing of patents. We also forge
middle-income countries. This innovative partnerships to develop new models of HIV
represents nearly two thirds of people treatment delivery in resource-limited settings.
PARTNERSHIP IN ACTION
HCV ELIMINATION PILOT PROGRAM
In Georgia, a small country at the Partnering with the Georgian government and the CDC, Gilead helped
intersection of Europe and Asia, WHO establish the Georgian HCV Elimination Project in 2015. Its aim is to provide
estimates that almost eight percent of free medicines to all those affected by the disease in Georgia and to
the population is chronically infected collaborate with the government and health professionals across the country
with the hepatitis C virus among the to expand its health systems infrastructure.
highest prevalence in the world. By ensuring that all those who may be at risk are tested for the virus,
providing access to treatment for all patients not just the sickest
and working to combat stigma associated with the disease, the goal is to
dramatically reduce, or potentially even eliminate, HCV from the country.
Since its inception, more than 35,300 people have been enrolled in the
project and almost 26,000 patients have completed treatment.
Davit Seergenko, Minister of Labour, Health and Social Affairs for Georgia,
says, Not only would that have a positive impact on the lives of thousands
of people across Georgia, but we hope it will also demonstrate what is
possible to the rest of the world.
Find out more about Georgias HCV Elimination program by viewing our
Temur Radiani, video at www.gilead.com/yir2016
HCV patient, Georgia
VIDA EM MOVIMENTO
AMID UNCERTAINTY, HIV ACTIVISM THRIVES IN BRAZIL
PEOPLE 21
HEALTH AND WELFARE BENEFITS
Full-time and part-time employees working at least 30 hours per week are eligible for health and other benefits.
Part-time employees working fewer than 30 hours per week are eligible for some of the benefit programs, including
401(k), time off and wellness activities.
Health Benefits Gileads Back-Up Care program provides elder care and child
Gilead offers competitive medical, dental and vision plans care, when employees experience a temporary interruption
and spouses, domestic partners and dependent children in normal care and need to get to work. Center-based and in-
through age 25 are also eligible for these plans. In addition, home care is available for loved ones of any age, in any U.S.
Gilead provides life, accidental death and dismemberment location. Gilead covers the majority of costs and provides up
(AD&D) and short- and long-term disability coverage. The to 80 hours of care per year.
company offers health and dependent care reimbursement
programs that allow employees to set aside a portion of Professional Development
their salary on a pre-tax basis to pay for qualified health Gilead takes pride in providing an environment where
and dependent care expenses. We also provide access to a employees can achieve professional success and grow
Health Savings Account (HSA) for employees enrolled in the their careers. We challenge ourselves to offer employees a
High Deductible Health plan. The HSA allows employees selection of trainings, coaching, mentoring and on-the-job
to use pre-tax dollars for current and future health care experiences that help them learn about our culture, develop
expenses. Gilead contributes to this account. cross-functional skills and deliver business results.
Complementing medical plans, Wellness at Gilead offers In 2016, 6,378 Gilead employees completed 37,087 hours
an array of services that help employees achieve and of professional, management and leadership development
maintain optimal health, including biometric screenings, training programs.
wellness seminars, onsite fitness centers or annual fitness
reimbursement and health assessment tools.
2016 Corporate Learning and
Development Statistics
Time Off
Gilead offers a competitive time off program to help
employees remain rested and balanced throughout the year.
Employees receive 13 company-paid holidays (including an
annual year-end shutdown) and a minimum of 15 vacation
days each year.
1,355 hrs 29,960 hrs 5,772 hrs
Income Protection E-Learning Instructor-Led Leadership
U.S. employees enjoy many forms of coverage that help Trainings Development
protect their income and provide financial security: All online training completions are assumed to be one hour.
company-paid life insurance, AD&D insurance, business
travel accident insurance, sick days and short-term and long-
MBA Program and Tuition Reimbursement
term disability benefits. Employees may also elect and pay
Partnering with Golden Gate University, Gilead offers an
for supplemental life and AD&D coverage.
onsite MBA program to help Foster City employees further
their education. In 2016, 116 employees took MBA courses
Employee Assistance Plan (EAP) and Back-Up Care
onsite. Employees can also receive up to $5,250 per year to
Employees and their families are eligible to receive EAP
pursue undergraduate, graduate or certificate courses at an
services, which include financial, legal, pre-retirement,
accredited college or university.
elder care and child care consultations, as well as clinical
counseling.
PEOPLE 22
Parental Leave and Support 2016 Gender Distribution
In the United States, Gilead provided employees with an approved
leave of absence of up to 12 weeks to care for a new child born or
placed for adoption or foster care in 2016. Parental leave is also
offered in most countries outside of the United States, where
parental leave is offered. We ensure legislative compliance and 48% 52%
alignment with the market median. Benefits-eligible employees Male Female
may be reimbursed up to $5,000 per adoptive child for expenses
related to the adoption.
PEOPLE 23
Gilead 2016 U.S. Population1
Gender Race/Ethnicity
EEO-1 Category Percent Percent Percent Percent Black or Percent Hispanic Percent Percent
Male Female White African American or Latino Asian Other2
Executives3
76.6 23.4 77.9 5.2 1.3 14.3 1.3
First-/Mid-Level
Managers 48.1 51.9 53.5 4.9 5.5 33.6 2.5
Professionals
45.8 54.2 38 2.2 5.7 51.6 2.3
Total Gilead
U.S. Population 48.3 51.7 47.7 4.2 8.4 36.9 2.7
1 Data based on U.S. definitions/demographics as of 2016 EEO-1 filing 2 Other includes two or more races, Native Hawaiian or Pacific Islander and
American Indian or Alaskan Native categories 3 Executives comprises less than two percent of Gileads U.S. population
Volunteerism
The Gilead Volunteer Community consists of employees environmental clean-up with Pacifica Beach Coalition and
from various departments who volunteer in activities that preparing holiday gift baskets for LifeMoves. In addition,
are aligned with the companys mission and core values. the Gilead Volunteer Community has held donation-based
Through this community, employees engage in a wide range drives such as the backpack and toy drives benefiting the
of activities benefiting four core areas of focus: poverty, Family Giving Tree, and the food drive benefiting Second
education, environment and health awareness/outreach. Harvest Food Bank.
Gilead volunteers have participated in activities such as
In 2016, more than 400 employees joined the Gilead
home builds and park beautification projects with Habitat
Volunteer Community and donated their time to help
for Humanity, food sorts at Second Harvest Food Bank,
support our local communities.
Gilead volunteers
participating in a Habitat
for Humanity park
beautification event
PEOPLE 24
Gileads Environmental
Health and Safety team has an
enterprise-wide responsibility to
promote and maintain safe and
secure work environments for
100 percent of our employees.
James Olmstead,
2016 Safety Metrics at the Gilead Oceanside
Foster City Campus
PEOPLE 25
PRODUCT
Gileads antiretroviral therapies have To treat HBV, Gilead offers medicines that
helped transform HIV infection from help patients manage chronic infection. Our
a fatal and debilitating disease into a research team continues to work on ways to
chronic, manageable condition. We now achieve a finite duration of treatment such
have nine medicines available to patients that patients can control or eliminate the virus
and providers to help address the diverse without having to endure a lifetime of therapy.
needs of HIV patients worldwide. Through
As Gilead works to transform and simplify
the advancement of PrEP, Gilead is also
care by delivering innovative and effective
helping reduce the chances of acquiring HIV
treatments, we are also seeking to reduce
infection in HIV-negative individuals at high
the environmental and social impacts
risk. However, we are not stopping there.
associated with manufacturing, packaging
We are also working to end the epidemic by
and distribution of our products. From
conducting early-stage clinical research to
implementing environmental process
identify novel agents and strategies that could
Ron Taber, Gilead improvements at our manufacturing sites
San Dimas
play a role in eradicating HIV infection in
to developing a company-wide Supplier
the body.
Inclusion program to create opportunities for
Gilead is also transforming treatment of underrepresented suppliers, Gilead is actively
HCV. In three years we have launched three minimizing environmental and social impacts
HCV therapies, including the first pan- in its supply chain.
genotypic treatment for the disease, Epclusa
(sofosbuvir/velpatasvir), which was approved SUPPLY CHAIN AND PROCUREMENT
in 2016. Today more than one million Through close oversight and strategic
patients worldwide have been treated with decision-making, we not only maintain
a sofosbuvir-based regimen. We continue compliance, but also improve social and
to work to address unmet needs with an environmental performance in our supply
additional fixed dose combination currently chain. Gileads procurement and supply
under evaluation as a potential salvage chain initiatives include responsible sourcing,
therapy for the treatment of patients who auditing procedures, manufacturing and
failed other direct-acting antiviral therapies. distribution and green chemistry.
PRODUCT 27
RESPONSIBLE SOURCING
In 2016, Gileads procurement organization commenced
development of a new Supplier Code of Conduct to integrate
social and environmental indicators into its supply chain
and procurement process. These indicators include supplier
diversity, labor practices, human rights, environmental
health and safety, environmental impact and mentoring and
investment programs to help advance supplier programs
and policies.
SUPPLIER INCLUSION
Gileads procurement initiatives included small businesses
and/or businesses owned by women, minorities, LGBT
individuals, veterans and service-disabled veterans.
PRODUCT 28
MANUFACTURING AND DISTRIBUTION
We contract with third parties to manufacture the majority of our active pharmaceutical ingredients (APIs)
and drug products and our external supply chain continues to expand around the world. Our internal
manufacturing facilities are located in Foster City, San Dimas and Oceanside, California; Edmonton,
Alberta, Canada and Cork, Ireland.
Gileads suppliers for APIs and products must observe Good Manufacturing Practice (GMP) regulations as
designed by the United States Food and Drug Administration (FDA) and other relevant health authorities
worldwide. GMP covers all aspects of production: manufacturing procedures of dosage products and APIs
from the starting materials, premises and equipment to the training and personal hygiene of staff.
GREEN CHEMISTRY
As part of the lifecycle management of all products, there may be
opportunities to refine the process to achieve chemically equivalent
results while reducing or substituting out undesirable inputs such
as organic solvents. Limiting organic solvents helps lower Gileads
environmental impact since these solvents are typically derived
from nonrenewable sources and may have hazardous or toxic
properties. We have undertaken efforts to reduce the use of organic
solvents and other harmful substances from our manufacturing
process.
PRODUCT 29
Gileads CAPO group also made significant In 2016, Key API Process
progress developing API process improvements Improvements Included:
for the manufacturing of APIs for HIV and HCV
therapies in 2016. Therapy HIV HCV
API TAF SOF
Implemented at Gileads development
manufacturing facilities, these process Reduction in
Solvents 12% 35%
improvements reduced solvents, halogenated
solvents, aqueous washes and organic waste,
Reduction in
while increasing yields. Halogenated
Solvents
22% 41%
After verifying the feasibility of these
optimizations at full scale, Gilead began testing
Reduction in No.
the latest API process in commercial reactors of Aqueous Waste 20% 9%
at the end of 2016. Following rigorous tests, the
optimizations successfully demonstrated viability
Reduction in
and CAPO is now in the process of generating the Organic Waste 9% 17%
data required for regulatory approval in countries
where Gilead manufactures and distributes HIV TAF: Tenofovir Alafenamide
SOF: Sofosbuvir
and HCV medicines.
SAFETY, LABELING
AND COMPLIANCE
Product safety is paramount at Gilead. Every
product goes through rigorous development,
testing and clinical trials phases. All Gilead
products are labeled and marketed pursuant to
governing policies and regulations. There were no
marketing or labeling violations in 2016 resulting
in a fine or warning.
PRODUCT 30
ENVIRONMENT
Building on our core principles of integrity, where applicable. Example standards include
inclusion, teamwork, excellence and Leadership in Energy and Environmental
accountability, Gilead empowers teams Design (LEED), Building Research
at each office location to tailor unique Establishment Environmental Assessment
environmental initiatives suited to the Method (BREEAM) and California Title
individual functions of the site. Cross- 24 CALGreen.
functional communications are encouraged
In 2016, Gilead leased new office space in
within the organization so that innovative
Istanbul in a LEED Platinum-rated building
ideas and solutions can be shared across our
and LEED principles were incorporated into
facilities worldwide.
the design and construction of a new campus
in La Verne, California.
SUSTAINABILITY STRATEGY
Gileads worldwide sustainability strategy
MANUFACTURING AND
aims to reduce the environmental impacts
DISTRIBUTION
associated with operating our corporate
Gilead leverages green teams at its
facilities and manufacturing and distributing
manufacturing sites to develop innovative
our products. Our strategy targets
ways to reduce building and equipment
environmental impacts including energy
energy use, water consumption and waste
and water consumption, raw material use,
generation. These teams are responsible for
Our campus in waste generation, land use, biodiversity,
Cork, Ireland utilizes implementing improvement measures and
transportation and greenhouse gas emissions.
energy from nearby communicating with management and other
wind turbines
sites to share knowledge, achievements and
GILEAD SITES
lessons learned.
All new and existing sites at Gilead are
encouraged to follow green building practices Following is a summary of 2016 achievements
and/or local green building certifications from Gileads sites around the world.
ENVIRONMENT 32
FOSTER CITY, CALIFORNIA, UNITED STATES
Gileads worldwide headquarters, located in Foster City,
Foster City
California, comprises 2.2 million square feet of office, Campus
research and development and laboratory space.
2.2M
In recent years we have built a series of new laboratory square feet
buildings on campus, including, in 2016, the demolishment
of several buildings to make space for a new development
which will house employees from 12 groups in the
Research organization. 2016 also saw the opening of a new
office building, which houses many of our general and
administrative departments.
We have made these improvements to our campus Additional Scope 1 and 2 emission sources will be added in
with sustainability in mind as well as being positive the future as Gileads data collection process expands.
environments for our employees and helping to foster
As Gilead continues to grow in headcount and building
and drive innovation.
footprint, both absolute GHG emissions and GHG
intensities will be monitored to track changes over time.
Biodiversity
In 2016, the GHG emissions intensity for Foster City was
The site is in an environmentally sensitive area adjacent to
0.01006 MT CO2e per square foot. As new buildings are
the San Francisco Bay watershed, a natural wetland home
brought online, the goal is to maintain or improve upon
to some rare and endemic plant and animal species. The
current GHG intensity levels.
wetland marsh functions to absorb storm and tidal surges,
filter bay water through natural tidal movements and provide
Other Significant Air Emissions from Foster City
natural habitat.
In 2016, Gilead quantified emissions of nitrous oxides (NOx)
To mitigate environmental impacts and to promote and sulphur oxides (SOx) resulting from the combustion of
biodiversity on the site, Gilead designed bioswales with natural gas and use of purchased electricity.
native plant species to collect, treat, retain and infiltrate
stormwater onsite instead of releasing it into the bay. 2016 GHG Emissions Summary
for Foster City
Sustainable Building Practices
Consistent with Gileads portfolio-wide green building
design and construction standards, the Foster City campus
employs a comprehensive set of measures intended to
reduce environmental impact and increase employee 60% MT CO2e
40%
productivity. For example, to comply with Californias 14,315
Indirect
23,678 9,363
Direct
CALGreen sustainable building code, the Foster City campus Total
uses LED lighting and smart controls to turn lighting on and
off based on occupant activity. Similarly, the heating and
cooling equipment serving the campus meets high efficiency
requirements to reduce energy use.
Scope 1 emission factors sourced from the U.S. EPAs Final Rule for
Energy Efficiency and Greenhouse Gas Emissions Mandatory Reporting of Greenhouse Gases. Scope 2 emission factors
In 2016, Gilead tracked greenhouse gas (GHG) emissions sourced from eGRID2014.
in Foster City. The GHG emission inventory includes Scope GWP coefficients sourced from the IPCC Fifth Assessment Report (AR5).
1 and 2 emission sources from purchased electricity and
natural gas measured in metric tons of CO2 equivalent (MT
CO2e) to account for emissions of CO2 , CH4 and N2O.
ENVIRONMENT 33
2016 Criteria Pollutant Metrics in Metric Tons The campus waste reduction strategy includes recycling for
glass, plastic and metals and composting for organic wastes.
Pollutant Natural Gas Electricity
Employee cafeterias use fully biodegradable tableware and
recycling and composting bins are in well-marked and easily
NOx 7.79 5.01
accessible areas throughout the campus.
66%
Compilation of Air Emission Factors and eGRID2014.
Energy Use
In 2016, the Foster City campus consumed a total of 55.2
34% Diverted Material
(Recycling +
Garbage Organics)
GWh of electricity and 176,293 MMBtu of natural gas.
780
2016 Foster City Energy Use Metrics Tons 623
Tons 916
Benchmark (Energy Use Intensity) kBtu/ft Tons
Electricity 80
Gas 75
Total 155
Recyclables Organics Garbage
ENVIRONMENT 34
La Verne and be collected from the pure steam generator and reused for
cooling water to displace potable water sourced from the
San Dimas city. An advanced energy monitoring system will allow for
Campuses real-time monitoring of natural gas, hot and chilled water,
In 2016, lighting systems in two warehouse buildings were upgraded to more energy efficient
LED fixtures, with one also upgrading to motion sensing occupancy controls. The new 200W
LED fixtures represent a 37 percent reduction in lighting power from the fixtures they replaced.
To reduce greenhouse gas emissions from product distribution in 2016, Gilead worked with
a partnering wholesaler to consolidate individual shipments into a combined shipment for
national distribution. This resulted in a reduction of 975 metric tons of CO2e emissions in 2016.
Vehicle fuel economy and emission rates sourced from the 2016 Greenhouse Gases, Regulated Emissions,
and Energy Use in Transportation Model (GREET) for long-haul, low sulfur diesel fuel trucks. Global warming
Kazuya Koda, potentials (GWP) sourced from the International Panel on Climate Change (IPCC) Fifth Assessment
Gilead San Dimas Report (AR5).
ENVIRONMENT 35
Oceanside Edmonton
Campus Campus
LEED Gold ISO 14001
certification certification
ENVIRONMENT 36
STOCKLEY PARK, UNITED KINGDOM
Stockley Park is Gileads international headquarters. In 2016, the
Stockley Park
BREEAM Very Good rated facility achieved zero landfill status. and Cambridge
All 6.49 metric tons of solid waste generated onsite in 2016 was Campuses
diverted from landfills.
On track for
General waste is converted to energy and food waste is utilized as
feedstock in an anaerobic digester. BREEAM
Very Good rating
Energy consumption at Stockley Park is measured against a 2012
benchmark electric energy use intensity (EUI) of 37.1 kBtu/ft.
From 2012 to 2016, Stockley Park added 65 percent more occupied BREEAM
space and only increased its electric EUI by one percent. Very Good rating
Total
6.49
Tons
2.97 2.86 0.33 0.23 0.10
Dry Mixed General Confidential Food Glass
Recycling Waste Waste Waste
ENVIRONMENT 37
Cork
Campus
Zero-landfill waste
status for four
consecutive years
CORK, IRELAND
Gileads Cork facility is responsible for manufacturing, Cork maintained its zero landfill waste status for the fourth
quality control, packaging and the release and distribution consecutive year, continuing to divert more than 20 metric
of the companys products in the European Union and tons of solid waste from Irelands landfills annually.
international locations.
Submetering systems installed last year made it possible
The professionals that operate our Cork site received for the engineering staff to benchmark energy and water
recognition for their sustainability efforts, winning the honor performance more accurately and use data to identify issues
of In-House Facilities Team of the Year at the 2016 Irish that may have otherwise gone unnoticed.
National Facilities Management Awards.
High-resolution meter data helped identify and isolate an
underground system water leak, saving more than 1.4 million
gallons of fresh water per year.
ENVIRONMENT 38
CORPORATE INFORMATION
BOARD OF DIRECTORS Andrew Cheng, MD, PhD Brian J. Druker, MD CORPORATE HEADQUARTERS
Executive Vice President, Clinical Director, Knight Cancer Institute
John C. Martin, PhD Gilead Sciences, Inc.
Research and Development Operations Associate Dean for Oncology, School
Executive Chairman, Gilead Sciences of Medicine, JELD-WEN Chair of 333 Lakeside Drive
William A. Lee, PhD Leukemia Research, Oregon Health Foster City, CA 94404 USA
John F. Cogan, PhD & Science University, Investigator, (800) 445-3235 or (650) 574-3000
Executive Vice President, Research
Lead Independent Director, Howard Hughes Medical Institute www.gilead.com
Gilead Sciences John McHutchison, MD
Executive Vice President, Mark C. Genovese, MD
Kelly A. Kramer James W. Raitt Endowed Professor of STOCKHOLDER INQUIRIES
Clinical Research
Executive Vice President and Chief Medicine, Co-Division Chief Division Inquiries from our stockholders and
Financial Officer, Cisco Systems, Inc. Jim Meyers of Immunology and Rheumatology, potential investors regarding our
Executive Vice President, Stanford University School of Medicine company are always welcome and will
Kevin E. Lofton, FACHE
Commercial Operations receive a prompt response. Please direct
Chief Executive Officer, Robert (Bob) A. Harrington, MD your requests for information to:
Catholic Health Initiatives Brett A. Pletcher Arthur L. Bloomfield Professor of
Executive Vice President, General Counsel Medicine, Chair, Department of Medicine,
John W. Madigan Stanford University School of Medicine
and Chief Compliance Officer INVESTOR RELATIONS
Retired Chairman and Chief Executive
Officer, Tribune Company Martin B. Silverstein, MD Paul Klotman, MD Gilead Sciences, Inc.
Executive Vice President, Strategy President, Chief Executive Officer, and 333 Lakeside Drive
John F. Milligan, PhD Executive Dean, John E. and Clara B. Foster City, CA 94404 USA
President and Chief Executive Officer, Robin L. Washington Whitmore Professor, Baylor College of (800) 445-3235 or (650) 574-3000
Gilead Sciences Medicine
Executive Vice President and
Chief Financial Officer Information regarding Gilead also is
Nicholas G. Moore Malcolm MacCoss, PhD, FRSC available at www.gilead.com
Retired Global Chairman, Katie L. Watson Founder and Member, Bohicket Pharma
PricewaterhouseCoopers Consulting LLC, Visiting Professor of
Executive Vice President,
Human Resources Chemistry for Medicine, University of STOCK LISTING
Richard J. Whitley, MD Oxford, UK
Distinguished Professor, Gilead common stock is traded on the
Taiyin Yang, PhD Nasdaq Global Select Stock Market,
Loeb Scholar Chair in Pediatrics, John W. Mellors, MD
Executive Vice President, Pharmaceutical under the symbol GILD.
Professor of Pediatrics, Microbiology, Professor of Medicine, Chief, Division
Development and Manufacturing
Medicine, and Neurosurgery, of Infectious Diseases, University of
University of Alabama at Birmingham Pittsburgh School of Medicine
Kevin Young CBE ANNUAL MEETING
Chief Operating Officer
Gayle Edlund Wilson Eugene R. Schiff, MD The annual meeting of stockholders
Chairman Emeritus of COSMOS, Leonard Miller Professor of Medicine, will be held at 10:00 a.m. on
The California State Summer School Dr. Nasser Ibrahim Al-Rashid Chair in the Wednesday, May 10, 2017, at the Westin
SCIENTIFIC
for Math and Science Schiff Center for Liver Diseases, Director, San Francisco Airport Hotel.
ADVISORY BOARD
Schiff Center for Liver Diseases, Director,
Per Wold-Olsen Joel R. Huff, PhD (Chairperson) Hepatology Research Laboratory,
Retired President, Human Health Inter- Retired, Vice President of Medicinal University of Miami Miller School of TRANSFER AGENT
continental Division, Merck & Co., Inc. Chemistry, Merck Research Laboratories Medicine AND REGISTRAR
39