Gilead Sciences Inc (GILD.O) on Thursday raised its 2020 sales forecast to include revenue from its antiviral drug remdesivir, one of the only treatments shown to help hospitalized COVID-19 patients.
Gilead said it now expects total 2020 sales of $23 billion to $25 billion, up from a previous range of $21.8 billion to $22.2 billion.
“We think this implies up to $1 billion to $3 billion of remdesivir … a positive that was not expected at the start of the year,” said Jefferies analyst Michael Yee.
Mizuho analyst Salim Sayed said the forecast translates into $1 billion in remdesivir sales in third quarter “and perhaps another $1 billion in the fourth quarter.”
The drugmaker reported worse-than-expected second-quarter results due to weak sales of its hepatitis C drugs and flagship HIV treatments during pandemic lockdowns. The company said it expects a gradual recovery for its HIV drugs and hepatitis C sales to begin regaining momentum in the third quarter.
Adjusted earnings for the quarter of $1.11 per share topped analysts’ average estimate by 34 cents.
Second-quarter sales of Gilead’s HIV drugs fell 1% from a year earlier to $4 billion, while sales of its drugs to cure hepatitis C fell 47% to $448 million due to fewer new patients and competition from rival drugs.
Gilead this month began commercial sales of remdesivir, which is given to hospitalized patients by infusion. The drug was granted emergency use authorization by the U.S. Food and Drug Administration in May after it demonstrated an ability to shorten hospital stays for COVID-19 patients, but does not yet have full U.S. approval. It was approved in Japan.
But demand continues to outstrip supply in many parts of the world.
Gilead Chief Executive Daniel O’Day, on a conference call, said the company expects by the end of September to be producing enough remdesivir to meet real time global demand.
Gilead said it still expects to manufacturer 2 million or more remdesivir treatment courses cumulatively in 2020, and its revenue outlook reflects expected sales of up to 1.5 million courses this year.
So far, only remdesivir and the generic steroid dexamethasone have been shown in rigorous clinical trials to help patients with COVID-19.
Shares of Gilead, which closed up about 1% in regular trading, were down 2% at $70.88 in extended trading.
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