Gilead Quarterly Revenue Rises on Remdesivir Sales
October 28 2020 - 5:40PM
Dow Jones News
By Maria Armental
Gilead Sciences Inc.'s revenue rose 17% in the third quarter,
helped by sales of its antiviral drug remdesivir that has become a
standard treatment for hospitalized Covid-19 patients.
Remdesivir, which sells under the brand name Veklury, brought in
$873 million in sales in the latest quarter. The drug has been
approved in the U.S. to treat patients 12 years and older who
require hospitalization for the disease caused by the new
coronavirus.
A study paid for by the National Institute of Allergy and
Infectious Diseases found the drug helped speed recovery times in
hospitalized Covid-19 patients. Remdesivir was administered to
President Trump as part of his Covid-19 treatment regimen.
California-based Gilead on Wednesday said it now projects $23
billion to $23.5 billion in product sales for the year, down from
its earlier view of $23 billion to $25 billion, which the company
said reflected the progression of the pandemic. Gilead said that
AmerisourceBergen Corp. would remain the sole U.S. distributor of
remdesivir through the end of 2020 and that it will sell the drug
directly to hospitals.
The company said it expects its core business to gradually
recover in the fourth quarter and into the first half of 2021 and
that acquisition of Immunomedics should immediately add to revenue
growth. Immunomedics' Trodelvy is among the brightest cancer-drug
prospects, showing signs of success in treating lung and other
cancers.
"The recent acquisition of Immunomedics has effectively
transformed Gilead's growth story," Chief Executive Daniel O'Day
said in a statement. "Trodelvy, an approved medicine with extensive
potential for patients with a range of tumor types, adds to our
growing portfolio of transformational medicines."
The biopharmaceutical company said it now expects $10.7 billion
to $11.2 billion in operating profit for the year, compared with
its earlier view of $10.7 billion to $13 billion.
Gilead swung to a third-quarter profit of $360 million, or 29
cents a share, from a $1.17 billion loss a year earlier. Last
year's quarterly result included upfront collaboration and
licensing expenses of $3.92 billion, or $2.40 a share, related to
Gilead's global research and development collaboration agreement
with Galapagos NV. On an adjusted basis, profit for the September
quarter was $2.11 a share.
Revenue rose to $6.58 billion from $5.6 billion a year
earlier.
Analysts surveyed by FactSet expected a profit of $1.33 a share,
or $1.90 a share as adjusted, on $6.3 billion in revenue.
Company officials had said that pandemic-related disruptions to
routine health care had lowered sales and the number of new
patients starting taking some of its drugs, including its antiviral
drug Biktarvy and its prophylactic treatment Descovy, which can
prevent new HIV infections.
Sales of Biktarvy rose 50% to $1.89 billion in the third
quarter, while Descovy sales climbed 40% to $508 million.
(END) Dow Jones Newswires
October 28, 2020 17:25 ET (21:25 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Gilead Sciences (NASDAQ:GILD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gilead Sciences (NASDAQ:GILD)
Historical Stock Chart
From Apr 2023 to Apr 2024