DOW JONES NEWSWIRES
Gilead Sciences Inc.'s (GILD) second-quarter profit rose 4.8% as
higher revenue driven by the company's antiviral products more than
offset a decline in Tamiflu royalties.
The biopharmaceutical company has dominated the market for HIV
treatment and receives royalties from Roche Holding AG (RHHBY,
ROG.VX) for Tamiflu, which Gilead created. In June, the company
received a subpoena from the Department of Justice requesting
documents related to the manufacturing and distribution practices
on treatments including hepatitis B drug Hepsera, hypertension drug
Letairis, and HIV treatments Atripla and Truvada.
Gilead posted a profit of $746.2 million, or 93 cents a share,
up from $712.1 million, or 79 cents a share, a year earlier.
Excluding charges related to acquisitions, stock-based compensation
expenses and other items, earnings rose to $1 from 85 cents.
Revenue rose 11% to $2.14 billion.
Analysts surveyed by Thomson Reuters had most recently predicted
earnings of 99 cents a share on revenue of $2.07 billion.
Operating margin narrowed to 49.8% from 51.5% as expenses rose
20%.
Product sales, from which the company gets the majority of its
revenue, rose 13%. Sales of antiviral products increased 11%. Sales
of Atripla climbed 15% as sales of Truvada rose 11%. Royalties from
Tamiflu fell 40% to $50.6 million.
Shares fell 0.1% to $42.11 in after-hours trading. Through
Tuesday's close, the stock is up 26% over the past 12 months.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com