EFTA01446908

Deutsche Bank Markets Research Rating Buy North Anterica United States Health Care Biotechnology Company Gilead Sciences Alert Re...try t GILD.00 4. enOn Tgte; GILD US NMS GILD Atripla recall is NOT an issue - DB thoughts post mgmt convo We have gotten many questions around Gilead's Atripla and the voluntary recall that posted to the FDA site. We spoke to mgmt and here is their take MGMT COLOR. • On a typical quality check Gilead found small particles and proactively issued a voluntary recall of 39K bottles ONLY. Gilead took it upon themselves to contact the agency and issue the voluntary recall of these lots. • This is from their 3'd party manufacturer in China that only makes Atripla. Gilead has multiple manufacturers for Atripla. • Management reiterates that this is a very minor issue The company has more than enough Atripla supply. Here is the link to the FDA report htto://www.accessdataida.qov/scriots/enforcement/enforce rnt-Product- Tabs cfm7action-select&recall number-D-1090- 20148m=03052014&langreng Nle \•vould be buyers on the weakness today. The fundamental story on base biz and Sovaldi buy case intact. Reiterate Buy and $ 132 TP. 6 March 2014 Breaking News Price at 5 Mar 2014 (USD) 82.87 Price target 132.00 52-week range 83.95 - 44.38 Research Ana at .ketaia 'coking Research Analyst :on Market cap (USO) 125.731.5 Shares outstanding (n) 1.517.2 Free float 1%) 100 Volume (5 Mar 2014) 2.096.512 Option volume fund. shrs.. 1M 678.195 avg.) seise omen* an Key data —"— EYE 12/31 2013A 2014E 2015E 10 EPS 0.48 0.98 20 EPS 0.50 1.28 30 EPS 0.60 1.03 40 EPS 0.55 0.96 FY EPS (USO) 2.13 4.25 7.76 P/E Ix) 26.3 19.5 10.7 Soave Dutch* Sent • includes Me •flgoci al furl IR requmg s. apensinp ae 'tea Deutsche Bank Securities Inc. The views expressed above accurately reflect the personal views of the authors about the subject companies and its(their) securities. The authors have not and will not receive any compensation for providing a specific recommendation or view. Deutsche Bank does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. FOR OTHER IMPORTANT DISCLOSURES PLEASE VISIT http://gmdb.com/ger/disclosure/Disclosure.eqsr?ricCode-GILD.OQ M ICA(P) 054/04/2013. CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SONY-0101342 CONFIDENTIAL SDNY_GM_00247526 EFTA01446908