UK markets closed
  • NIKKEI 225

    28,871.78
    +324.80 (+1.14%)
     
  • HANG SENG

    20,040.86
    -134.76 (-0.67%)
     
  • CRUDE OIL

    89.17
    -2.92 (-3.17%)
     
  • GOLD FUTURES

    1,795.30
    -20.20 (-1.11%)
     
  • DOW

    33,898.79
    +137.74 (+0.41%)
     
  • BTC-GBP

    19,956.22
    -289.80 (-1.43%)
     
  • CMC Crypto 200

    571.15
    -19.61 (-3.32%)
     
  • ^IXIC

    13,116.89
    +69.70 (+0.53%)
     
  • ^FTAS

    4,155.09
    +5.19 (+0.13%)
     

Gilead quarterly profit falls as COVID antiviral sales decrease

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
FILE PHOTO: Gilead Sciences Inc pharmaceutical company is seen during the outbreak of the coronavirus disease (COVID-19), in California
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

By Deena Beasley

(Reuters) -Gilead Sciences Inc on Tuesday said its second-quarter adjusted profit fell due to higher research and royalty costs as well as a downturn in sales of its COVID-19 antiviral drug Veklury.

Quarterly revenue, however, rose 1% to $6.3 billion, which was ahead of the average Wall Street estimate of $5.85 billion, according to Refinitiv data.

The biotech company said adjusted quarterly profit fell 13% to $1.58 per share, which also topped the average analyst estimate of $1.52. Net income fell to 91 cents per share from $1.21 per share.

Sales of COVID-19 treatment remdesivir, which is sold under the brand name Veklury, fell 46% to $445 million, but still came in ahead of analysts' estimates of $390 million.

"Sales declined as hospitalization rates declined in most geographies," Gilead Chief Commercial Officer Johanna Mercier said on a conference call, adding the company remains ready to supply Veklury if needed.

Cancer drug Trodelvy - shown in a recent trial to modestly delay tumor growth in women with the most common form of breast cancer - saw sales rise 79% to $159 million. Sales of Gilead's cancer cell therapies rose by a robust 68% to $368 million.

HIV drug sales, driven by demand for higher-priced products, rose 7% to $4.2 billion.

Gilead announced that the U.S. Food and Drug Administration will decide by Dec. 27 whether to approve its long-acting HIV medication lenacapavir.

"We’ve seen somewhat of a recovery in core products from last quarter’s weaker results," BMO Capital Markets analyst Evan Seigerman said in a research note. He pointed to particular strength in HIV and cell therapy products.

For full-year 2022, California-based Gilead sightly raised its forecast for adjusted earnings per share to between $6.35 to $6.75 from a previous view of $6.20 to $6.70. Gilead said it now expects product sales of $24.5 billion to $25 billion, up from a prior estimate of $23.8 billion to $24.3 billion.

Gilead were up 1% at $60.15 in after hours trading.

(Reporting By Deena BeasleyEditing by Bill Berkrot)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting