Gilead Sciences, Inc. (NASDAQ:GILD) stock fell 5.18% (As on Feb 2, 11:42:02 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 21. As of December 31, 2021, Gilead had $7.8 billion of cash, cash equivalents and marketable debt securities compared to $7.9 billion as of December 31, 2020. During the fourth quarter 2021, Gilead generated $3.2 billion in operating cash flow. During the fourth quarter 2021, Gilead repaid $1.0 billion in debt, paid cash dividends of $894 million and utilized $49 million to repurchase common stock.

GILD in the fourth quarter of FY 21 has reported the adjusted earnings per share of 69 cents, missing the analysts’ estimates for the adjusted earnings per share of $1.53, according to the Zacks Consensus Estimate. The company had reported 2.4 percent fall in the adjusted revenue to $7.24 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue by 9.10%. This is due to decreased demand for Veklury (remdesivir 100 mg for injection), partially offset by favorable pricing dynamics in HIV. Total product sales excluding Veklury increased 8% to $5.8 billion for the fourth quarter 2021 compared to the same period in 2020, primarily reflecting higher demand for Biktarvy (bictegravir 50 mg/emtricitabine (“FTC”) 200 mg/tenofovir alafenamide (“TAF”) 25mg) and favorable pricing dynamics in HIV as well as contributions from Trodelvy® (sacituzumab govitecan-hziy) and Cell Therapy. HIV product sales increased 7% to $4.5 billion for the fourth quarter 2021 compared to the same period in 2020. Cell Therapy product sales increased 47% to $239 million for the fourth quarter 2021 compared to the same period in 2020.

Moreover, Non-GAAP product gross margin was 70.5% for the fourth quarter 2021 compared to 87.5% in the same period in 2020. The lower product gross margin reflects the impact of the $1.25 billion charge related to the aforementioned legal settlement. Non-GAAP R&D expenses for the fourth quarter 2021 were $2.0 billion compared to $1.5 billion in the same period in 2020. Higher R&D expenses primarily reflect a charge related to the Arcus collaboration opt-in and increased Trodelvy and magrolimab clinical activities, partially offset by the impact of higher 2020 expenses in connection with an amended agreement with Galapagos NV in the prior year that did not repeat.

Additionally, the company declared an increase of 2.8% in the company’s quarterly cash dividend, beginning in the first quarter of 2022. The increase will result in a quarterly dividend of $0.73 per share of common stock.