Gilead Sales of Hepatitis C Drugs Fall 19%
July 25 2016 - 5:20PM
Dow Jones News
Gilead Sciences Inc. said its revenue from its hepatitis C drugs
continued to fall, dropping 19% during the second quarter, with
sales of Harvoni missing expectations as competition from rival
drugs and pricing pressures intensified.
Shares of the company slipped 3% to $85.90 after hours.
The Foster City, Calif., biopharmaceutical company also lowered
its 2016 product sales outlook to $29.5 billion to $30.5 billion,
from its previous estimate for products sales of $30 billion to $31
billion.
For the latest quarter, Gilead reported Harvoni sales decreased
29% to $2.56 billion, while Sovaldi sales rose 5.2% to $1.36
billion. Analysts had expected Harvoni sales of $2.87 billion and
Sovaldi sales of $1.19 billion, according to FactSet.
The company also said its recently approved combination
hepatitis C drug, Epclusa, which is priced lower than the older
hepatitis C treatments, generated sales of $64 million.
Investors likely will be listening on the conference call for
any additional details about the roll out of Epclusa, along with
any comments about the company's drug-development pipeline.
Gilead dominates the market for hepatitis C drugs, where prices
for the costly medicines have come down amid growing competition
and as the portion of government-funded payers have risen and
discounts to commercial health insurers have increased. Rivals
AbbVie Inc., maker of hepatitis C treatment Viekira Pak, and Merck
& Co., maker of recently approved Zepatier, plan to release
their second-quarter results Friday.
Over all, Gilead reported a profit of $3.5 billion, or $2.58 a
share, down from $4.5 billion, or $2.92 a share, a year earlier.
Excluding acquisition-related expenses, stock-based compensation
and other items, adjusted per-share earnings fell to $3.08 from
$3.15. Product sales decreased 5.8% to $7.65 billion.
Analysts polled by Thomson Reuters expected per-share profit of
$3.02 and product sales of $7.77 billion.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
July 25, 2016 17:05 ET (21:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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