Gilead Swings to 2Q Loss Following Acquisition and Manufacturing Expansion of Covid-19 Drug Remdesivir
July 30 2020 - 4:46PM
Dow Jones News
By Maria Armental
Gilead Sciences Inc. swung to a loss in the June quarter
following the Forty Seven Inc. acquisition and reflecting higher
costs as it ramps up production of Covid-19 drug remdesivir.
Remdesivir, was authorized for emergency use in the U.S. in May,
and Gilead began charging for the drug in July.
On Thursday, Gilead said expenses more than doubled in the
quarter to $8.13 billion, outpacing revenue gains, largely due to
higher clinical trial and manufacturing ramp-up expenses related to
remdesivir.
Overall, Gilead reported a loss of $3.34 billion, or $2.66 a
share, compared with a year earlier profit of $1.88 billion, or
$1.47 a share. On an adjusted basis, profit fell to $1.11.
Revenue, meanwhile, fell 10% to $5.14 billion.
Analysts surveyed by FactSet expected a loss of 69 cents a
share, or adjusted profit of $1.44, on $5.29 billion in
revenue.
The drugmaker had warned that about $200 million in sales had
moved into the March quarter, primarily in the U.S., as customers
stocked up on prescription medicines during the pandemic.
Sales of HIV drug Biktarvy, which more than doubled in the March
quarter, rose 44% to $1.6 billion in the second quarter.
"Gilead's first half performance demonstrates the strength and
durability of our core HIV business, even as we navigated the
expected impact of the COVID-19 pandemic," Chief Executive Daniel
O'Day said in a statement, adding that Gilead was seeing early
signs of recovery.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
July 30, 2020 16:31 ET (20:31 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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