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Home / Business / The rapid launch of coronavirus drugs boosted Gilead’s earnings, but inventories fell as expected

The rapid launch of coronavirus drugs boosted Gilead’s earnings, but inventories fell as expected



Gilead Sciences Inc. released its first earnings report on Wednesday, which included the contribution of its COVID-19 antiviral drugs.

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In its first-quarter sales of COVID-19 antiviral drugs, Gilead Sciences Inc.’s profit and sales were better than expected, but its troubled stock was hit by a drop in expected annual sales on Wednesday.

Gilead GILD,
-2.15%
The company reported a third-quarter earnings of 360 million US dollars, or 29 cents per share, on revenue of 6.58 billion US dollars, higher than the 5.6 billion US dollars in the same period last year. After deducting acquisition-related expenses, the company announced earnings per share of 2.11 US dollars, higher than the 1.75 US dollars in the same period last year. According to FactSet’s data, analysts’ average expectations are: adjusted earnings per share of $1.90 and sales of $6.3 billion.

Gilead reported sales of its Veklury of US$873 million. Veklury’s COVID-19 treatment was previously called remdesivir, which was better than expected. The drug received emergency use regulations from the Food and Drug Administration in May.​​​ President Donald Trump received this drug treatment after he was diagnosed with the coronavirus. Veklury received full FDA approval earlier this month. This is the first COVID-19 drug to be fully approved by the FDA during the pandemic.

Veklury’s initial returns became a hot topic in the earnings report because Gilead’s returns depend on who received most of the early shipments: the government or the private sector, the latter will bring in greater revenue from drugs. According to data from FactSet, analysts’ average expected sales are $772 million, although Mizuho Securities analyst Salim Syed said that the Wall Street consensus is more like $1 billion, and Citigroup’s Analyst Mohit Bansal (Mohit Bansal) wrote that if drug wholesalers snapped up, total sales could be as high as $1.5 billion. Everything Gilead can do.

More information: What is remdesivir and who is allowed to receive it?

Gilead said that Viklury’s sales are “mainly” in the United States.

The company disclosed in its press release: “Veklury’s revenue is generated in a highly dynamic and complex global health environment, and this environment is still evolving.” Certainty.”

Most of Gilead’s sales come from HIV and AIDS drugs. According to data from Gilead, sales of these products in the quarter were US$4.55 billion, up from US$4.2 billion a year ago.

The company changed its annual forecast to lower the maximum level of its guidance, which shows a more pessimistic view of the rest of the year and appears to have hurt its stock in later trading. According to data from FactSet, Gilead now expects full-year revenue to be between 23 billion and 23.5 billion U.S. dollars. The company previously said 23 to 25 billion U.S. dollars, and analysts expect its average annual sales to be 24 billion U.S. dollars. . Gilead has indeed raised its adjusted earnings forecast and now expects its full-year profit to be US$6.25 to US$6.60 per share, compared to the range previously indicated by the company as US$6.05 to US$6.45 per share.

After the results were announced, Gilead’s stock price rose by more than 2.5% in after-hours trading, but soon fell by more than 1%. In the past three months, due to actual returns to Veklury and expensive acquisitions (such as the S&P 500 Index SPX,
-3.52%
During that period it increased by 5.4%.


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