Gilead Posted Smallest Year-Over-Year Decline of Drugs Sales Since 2015

Gilead Posted Smallest Year-Over-Year Decline of Drugs Sales Since 2015

May 5, 2019 280

Gilead Sciences' (GILD) hepatitis C treatments appeared stable Thursday as the biotech titan posted its smallest year-over-year decline for the drugs in three years.

Meanwhile, Gilead earnings beat first-quarter expectations as sales narrowly lagged estimates.

In after-hours trading on the stock market today, Gilead stock advanced 0.8%, after lifting 0.7% at the closing bell, to 65.30. (Is it a good time to buy Gilead stock? Click on the link.)

Gilead Earnings Top; HIV Treatments Rise

For the first quarter ended March 31, Gilead earnings of $1.76 a share, on an adjusted basis, popped 18.9% year over year. That beat the average of analysts polled by Zacks Investment Research for Gilead earnings of $1.62 per share.

Total revenue crept up 3.8% to $5.28 billion, but just missed forecasts for $5.31 billion. It's important to note that this quarter was the first time in three years that Gilead earnings and sales have posted year-over-year growth. Gilead reported declines in the last 11 quarters.

"Overall, the quarter looks fine," Mizuho analyst Salim Syed said in a report to clients. He noted the Street seemingly underestimated the strength of Gilead's HIV treatments. Sales were $3.6 billion, rising 12.5%. The increase was due to Biktarvy, a relatively new HIV treatment.

Biktarvy is key for Gilead's suite of HIV treatments. The drug is patent protected until 2033 — the longest protection period of any of Gilead's products. This "plays into the Gilead thesis in the marketplace that HIV may be a longer-term franchise than some think," Syed said.

Biktarvy sales of $793 million easily beat estimates for $682 million, RBC Capital Markets analyst Brian Abrahams said in his note to clients. This helped to offset some weakness across the rest of Gilead's HIV treatments, including Truvada, Stribild and Odefsey.

"We believe this remains a favorable dynamic, as the market moves to a regimen with a longer exclusivity period and the most competitive advantages," he said.

Hepatitis C Treatments Appear Stable

Further, Gilead's hepatitis C treatments seemed to stabilize in the quarter. Sales slid 21% to $790 million, but that was the smallest year-over-year decline in at least three years.

"Hepatitis C products come in better than expected, indicating the franchise remains a solid, albeit less meaningful, cash flow generator," RBC's Abrahams said.

Epclusa sales of $491 million were well above projections for $426 million, he said. Harvoni also slightly beat estimates.

Further, cancer treatment Yescarta generated $96 million, rising from $40 million in the year-ago period. That was in line with predictions, Abrahams said. Gilead noted the increase in Yescarta sales stemmed from a growing number of therapies provided to patients.

Gilead reiterated its outlook for $21.3 billion to $21.8 billion in product sales. That doesn't include the impact of royalty, contract and other revenue. In total, analysts expected full-year revenue of $22.03 billion and Gilead earnings of $6.67 per share.

 

 

 

Information source: https://www.investors.com/news/technology/gilead-stock-gilead-earnings-q1-2019/

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