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.
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