Gilead reports quarterly profit, revenue flat as cancer sales slow
Summary
Companies
Adjusted profit $1.81 per share vs analyst estimates of $1.79
Revenue flat vs year earlier at $6.7 billion
Biktarvy sales rise 7%, cell therapy sales fall 3%
April 24 (Reuters) - Gilead Sciences (GILD.O), opens new tab on Thursday reported slightly higher-than-expected quarterly earnings on flat revenue, as higher sales of drugs for HIV and liver disease along with expense tightening offset lower cancer drug sales.
Adjusted earnings per share came in at $1.81, just ahead of the average analysts' estimate of $1.79 a share, as compiled by LSEG. In the year-earlier quarter, Gilead posted a loss due to acquisition and impairment charges.
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Revenue of $6.7 billion was flat compared to a year ago and shy of the $6.8 billion expected by analysts.
Sales of HIV drug Biktarvy rose 7% to $3.15 billion, roughly in line with Wall Street estimates, while sales of liver disease drugs rose 3% to $758 million.
The California-based biotech has previously said its HIV revenue would be largely flat in 2025 because of changes to the federal government's Medicare health plan for people age 65 and over aimed at reducing out-of-pocket costs for beneficiaries.
Sales of cancer drug Trodelvy fell 5% to $293 million, below analysts' estimates of $362 million, due to pricing and inventory issues. Cell therapy product sales fell 3% to $464 million, which Gilead attributed to lower U.S. demand.
Sales of COVID-19 antiviral Veklury fell 45% to $302 million, while analysts had forecast $392 million.
For the full year, Gilead said it still expects adjusted earnings of $7.70 to $8.10 per share on product sales of $28.2 billion to $28.6 billion, which includes the known impact of tariffs so far imposed by the Trump administration.
The U.S. Food and Drug Administration is expected to decide by June 19 whether to approve Gilead's HIV drug lenacapavir as a twice-yearly injection for HIV prevention.
"We haven't seen or heard anything to date that would alter our expectations for launch," Gilead CEO Daniel O'Day said in an interview.
He also said Gilead continues to discuss with government officials the importance of support for programs to diagnose HIV infection and link people to care.
"The information we are getting is that they understand that," O'Day said.
Gilead's research and development expenses for the quarter were $1.4 billion, compared with $1.5 billion a year earlier, while sales and administrative costs dropped to $1.3 billion from $1.4 billion.
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