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Monday, February 4, 2019

Gilead, Struggling to Revamp Sales, Projects Another Annual Sales Decline

Gilead Sciences Inc. (GILD) expects another sales decline this year, which would mark the fourth consecutive year of falling sales.
The Foster City, Calif., company forecast sales in 2019 of $21.3 billion to $21.8 billion, compared with analysts’ projected $21.83 billion, according to FactSet data.
In 2018, Gilead reported $22.13 billion in sales.
Gilead has been trying to offset lower sales of hepatitis C drugs that drove an earlier sales surge. The company, which has a strong HIV/AIDS franchise, paid about $11 billion in 2017 to buy one of one of the pioneering companies in a type of cancer treatment known as CAR-T that uses patients’ immune cells to fight cancer.
But sales of its CAR-T therapy Yescarta have been meager, reaching $264 million in 2018, below analysts’ projected $271 million.
Daniel O’Day, who most recently ran Roche Holding AG’s pharmaceuticals group, is slated to take over as Gilead’s CEO next month.
Overall, Gilead swung to a fourth-quarter profit of $3 million from a year-earlier loss of $3.87 billion, or $2.96 a share, driven by charges tied to the U.S. tax overhaul. On an adjusted basis, profit fell to $1.44 a share from $1.78 a share a year earlier.
Revenue fell to $5.8 billion in the quarter from $5.95 billion a year earlier.
Analysts surveyed by FactSet had projected earnings of $1.70 a share on $5.52 billion in sales.
Chronic hepatitis C products brought in $738 million in the fourth-quarter, down from $1.5 billion a year earlier.

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