Gilead Raises Fiscal Year Guidance; Remdesivir Added $1.9 Billion in 3Q Sales -- Earnings Review
October 28 2021 - 4:48PM
Dow Jones News
By Maria Armental
Gilead Sciences Inc.'s third-quarter results beat Wall Street
targets, helped by $1.9 billion in sales of its antiviral drug
remdesivir that is used to treat hospitalized Covid-19 patients.
Here's what you need to know:
PROFIT: Third-quarter profit rose to $2.59 billion from $360
million a year earlier. On a per-share basis, profit was $2.05, or
$2.62 as adjusted. Analysts surveyed by FactSet expected $1.24 a
share, or $1.76 a share as adjusted.
REVENUE: Revenue rose to $7.42 billion from $6.58 billion a year
earlier. Analysts expected about $6.29 billion.
PRODUCT SALES: Product sales, which account for the bulk of
Gilead's topline, rose 13% to $7.4 billion. Excluding remdesivir,
which sells under the brand name Veklury and has been widely used
to treat hospitalized Covid-19 patients, sales rose 3%. Remdesivir
brought in $1.9 billion in sales in the latest quarter, well ahead
of analysts' projected $647 million.
The World Health Organization issued a conditional
recommendation against using remdesivir after concluding that there
wasn't enough evidence to support its use.
HIV product sales fell 8%, reflecting the loss of exclusivity of
Truvada and Atripla in the U.S. Truvada sales fell 87% and Atripla
76%, but sales of Gilead's flagship HIV therapy, Biktarvy, rose 20%
in the third quarter.
GUIDANCE: Gilead now expects remdesivir sales to reach $4.5
billion to $4.8 billion this year, and $26 billion to $26.3 billion
in annual total product sales. It earlier projected $2.7 billion to
$3.1 billion in remdesivir sales and $24.4 billion to $25 billion
in total product sales. It now expects $5.50 to $5.70 a share in
profit, or $7.90 to $8.10 on an adjusted basis, compared with its
earlier view of $4.70 to $5.05 a share, or $6.90 to $7.25 a share
as adjusted.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
October 28, 2021 16:33 ET (20:33 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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