Gilead Sciences to Purchase Biologics Process Research and Clinical Manufacturing Facility from Genentech

-- Purchase of Oceanside Facility Accelerates Gilead’s Clinical Manufacturing Capabilities for Early-Stage Investigational Biologic Therapies --

FOSTER CITY, Calif.--()--Gilead Sciences, Inc. (Nasdaq: GILD) today announced that the company has signed a definitive agreement under which Gilead will purchase a clinical biologics manufacturing facility and certain process development assets located in Oceanside, California from Genentech, a member of the Roche Group (SIX: RO, ROG; OTCQX: RHHBY). The agreement covers Genentech’s Oceanside Clinical Plant (OCP), a 70,000 square-foot facility at 4049 Avenida de la Plata, as well as certain other process development assets. Gilead will hire certain of Genentech’s biologics manufacturing specialists and process development scientists familiar with the facilities to assist with Gilead’s operations. Genentech will continue to operate and maintain ownership of the Oceanside Commercial Manufacturing (OCN) facilities at One Antibody Way and other adjacent land.

The companies expect the transaction to close in the third quarter of this year, subject to satisfaction of certain conditions. As part of the acquisition, approximately 55 current Genentech clinical manufacturing and process development employees will be offered employment at Gilead. All employees joining Gilead from Genentech will be working in the OCP facility.

The OCP facility is currently designed and equipped to produce biologic compounds for toxicological, Phase 1 and Phase 2 clinical studies. Initially, Gilead will use the facility for the process development and manufacture of GS 6624 (formerly AB0024), an investigational monoclonal antibody candidate in development for treatment of certain cancers and for fibrotic diseases, and another antibody which is currently in preclinical testing.

“This acquisition represents a unique opportunity to establish Gilead’s biologics process research and manufacturing capability while bringing on a team of employees with strong expertise in biologics manufacturing and process development. This will enable us to accelerate internal biologics research and development programs and take advantage of external opportunities in the future,” said Norbert W. Bischofberger, PhD, Gilead’s Executive Vice President, Research and Development and Chief Scientific Officer. “We look forward to welcoming our colleagues in Oceanside, as we seek to advance development of GS 6624 and other novel therapies for life-threatening diseases with unmet medical need.”

GS 6624 was discovered by Arresto Biosciences, which was acquired by Gilead in January 2011.

About Gilead Sciences

Gilead Sciences is a biopharmaceutical company that discovers, develops and commercializes innovative therapeutics in areas of unmet medical need. The company'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 Asia Pacific.

This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks, uncertainties and other factors, including the risk that the acquisition will not be consummated in the currently contemplated timelines or at all as the transaction is subject to certain closing conditions. In addition, if and when the transaction is consummated, there will be risks and uncertainties related to Gilead’s ability to successfully operate the facility and integrate the prior Genentech employees into Gilead’s business. Further, Gilead may experience difficulties and risks related to the manufacture and development of GS 6624 and as a result, GS 6624 may never be successfully commercialized. These risks, uncertainties and other factors could cause actual results to differ materially from those referred to in the forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. These and other risks are described in detail in Gilead's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, as filed with the U.S. Securities and Exchange Commission. All forward-looking statements are based on information currently available to Gilead, and Gilead assumes no obligation to update any such forward-looking statements.

For more information on Gilead Sciences, please visit the company's website at www.gilead.com or call Gilead Public Affairs at 1-800-GILEAD-5 or 1-650-574-3000.

Contacts

Gilead Sciences, Inc.
Susan Hubbard, 650-522-5715 (Investors)
Nathan Kaiser, 650-522-1853 (Media)

Contacts

Gilead Sciences, Inc.
Susan Hubbard, 650-522-5715 (Investors)
Nathan Kaiser, 650-522-1853 (Media)