Question-and-Answer Session
Operator
Thank you. (Operator instructions) And our first question comes from the line of Geoff Meacham with JPMorgan. Go ahead.
Geoff Meacham – JPMorgan
Hey guys, congrats on the quarter and thanks for taking the question. Question for you, I am trying to reconcile product sales guidance with Kevin’s comments on inventory and if I look at the guidance it implies I think an incremental $35 million or so in 4Q sales and yet Kevin you noted on the call that 3Q inventory levels were below normal so – or were at normal. So I am just curious if you can give us some comments on both of those.
Kevin Young
So, let me just then go back to the inventory, Geoff. Thanks for the question. As we said in Q2 earnings, there was a build-up that was about four days of Truvada and Atripla because of the wholesalers anticipating a July price increase, which we did indeed implement. That basically came out in the third quarter. So we are back to essentially business as usual with our HIV inventory levels. So, we think that will be maintained going into the fourth quarter and throughout the year. So unless some unanticipated events take place and we never know what’s going to happen there in terms of the practices of our major wholesalers. Our assumption going forward is that we will be operating at current levels of inventory through the fourth quarter.
Robin Washington
Geoff, this is Robin. I will also add just to be clear the new guidance is $6.350 billion, so it actually increased $150 million.
Susan Hubbard
Next question, operator.
Operator
Our next question comes from the line of Mark Schoenebaum with Deutsche Bank. Go ahead.
Mark Schoenebaum – Deutsche Bank
Hi everyone. Thanks for taking my question. I really appreciate it. John, I am fascinated by the R&D guidance. Can you give us a little more color as to how you were able to lower guidance, was it efficiencies or was it re-prioritization and maybe not doing some things you thought you were going to do and then when we – now, I know you are not going to give forward guidance beyond ’09, but when – you know big picture way we think about the Company, the R&D as a percent of revenues that you are seeing right now is that a reasonable way to think about the Company over the next few years? Thanks a lot.
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