DOW JONES NEWSWIRES
Gilead Sciences Inc.'s (GILD) first-quarter profit surged 45% on
strong sales of its HIV drugs as well as a jump in royalties from
flu-treatment Tamiflu because of worldwide initiatives to plan for
a possible influenza pandemic.
Shares fell 1.2% after-hours to $44.50 even as results edged
analysts' expectations.
The drug maker, known more for its HIV treatments, discovered
Tamiflu but licensed it to Roche Holding AG (RHHBY) for royalty
payments that it receives with a one-quarter lag.
For the latest quarter, the biopharmaceutical company posted a
profit of $854.9 million, or 92 cents a share, up from $589.1
million, or 63 cents a share, a year earlier. Excluding
acquisition- and restructuring-related charges, among others,
earnings rose to 99 cents from 66 cents as revenue jumped 36% to
$2.09 billion.
Analysts surveyed by Thomson Reuters expected a profit of 96
cents on revenue of $2.07 billion.
Product sales, which make up the bulk of total revenue, rose
24%. Royalties from Tamiflu soared to $246.3 million from $33.2
million.
Sales of Gilead's top-selling Atripla and Truvada jumped 36% and
11%, respectively. The increases were attributed to higher volumes
in the U.S. and Europe.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com