Gilead Sciences said on Thursday its HIV drug sales rose 4% to $5.3 billion in the third quarter including $39 million for its new prevention drug Yeztugo, helping to boost its profit.<\/p>\n
Overall product sales, however, fell 2% to $7.3 billion due to lower COVID-19 and cancer cell therapy sales.
\nGilead shares closed down a fraction and fell 1% to $117 in after-hours trading.<\/p>\n
Wall Street expected sales of Yeztugo, which has an annual U.S. list price of about $28,000, at $37.5 million, according to LSEG. The drug is a twice-yearly injection approved by U.S. regulators in June to prevent HIV in adults and adolescents at high risk of contracting the deadly infection.<\/p>\n
Sales of the new HIV prevention drug were in line with estimates, but fell short of “growing expectations,” RBC Capital Markets analyst Brian Abrahams said in a research note.<\/p>\n
“We are really pleased with the progress of the Yeztugo launch,” Gilead CEO Daniel O’Day said in an interview, noting that 75% of U.S. payers have agreed to cover the drug, and the company expects that to increase to 90% by mid-2026.
\nCVS Health, which runs the largest U.S. pharmacy benefit manager, has still not added Yeztugo to its commercial plans due to issues including the drug’s high cost.<\/p>\n
Gilead, based in Foster City, California, reported a quarterly profit of $2.43 per share, compared with $1.00 a year earlier, when it took a large impairment charge. Total revenue rose 3% to $7.77 billion, including $400 million from a one-time sale of intellectual property.<\/p>\n
The results beat average Wall Street estimates of $2.13 a share on revenue of $7.45 billion.
\nDespite lower-than-expected product sales, earnings per share were “salvaged” by higher-than-expected contract revenue and lower operating expenses, Abrahams said. “Still, we believe this would be viewed as a lower quality beat.”<\/p>\n
Gilead said sales in its liver disease portfolio rose 12% to $819 million, while sales of COVID treatment Veklury fell 60% to $277 million due to lower rates of COVID-related hospitalizations.<\/p>\n
Sales of cell therapy products decreased 11% to $432 million, reflecting more competition, while sales of cancer drug Trodelvy rose 7% to $357 million.
\nFor the full year, Gilead raised the lower end of its adjusted earnings estimate by 10 cents to $8.05 per share, but left the top end unchanged at $8.25.<\/p>\n
Gilead Sciences said on Thursday its HIV drug sales rose 4% to $5.3 billion in the third quarter including $39 million for its new prevention drug Yeztugo, helping to boost its profit.<\/p>\n
Overall product sales, however, fell 2% to $7.3 billion due to lower COVID-19 and cancer cell therapy sales.
\nGilead shares closed down a fraction and fell 1% to $117 in after-hours trading.<\/p>\n
Wall Street expected sales of Yeztugo, which has an annual U.S. list price of about $28,000, at $37.5 million, according to LSEG. The drug is a twice-yearly injection approved by U.S. regulators in June to prevent HIV in adults and adolescents at high risk of contracting the deadly infection.<\/p>\n
Sales of the new HIV prevention drug were in line with estimates, but fell short of “growing expectations,” RBC Capital Markets analyst Brian Abrahams said in a research note.<\/p>\n
“We are really pleased with the progress of the Yeztugo launch,” Gilead CEO Daniel O’Day said in an interview, noting that 75% of U.S. payers have agreed to cover the drug, and the company expects that to increase to 90% by mid-2026.<\/p>\n
CVS Health, which runs the largest U.S. pharmacy benefit manager, has still not added Yeztugo to its commercial plans due to issues including the drug’s high cost.<\/p>\n
Gilead, based in Foster City, California, reported a quarterly profit of $2.43 per share, compared with $1.00 a year earlier, when it took a large impairment charge. Total revenue rose 3% to $7.77 billion, including $400 million from a one-time sale of intellectual property.<\/p>\n
The results beat average Wall Street estimates of $2.13 a share on revenue of $7.45 billion.<\/p>\n
Despite lower-than-expected product sales, earnings per share were “salvaged” by higher-than-expected contract revenue and lower operating expenses, Abrahams said. “Still, we believe this would be viewed as a lower quality beat.”<\/p>\n
Gilead said sales in its liver disease portfolio rose 12% to $819 million, while sales of COVID treatment Veklury fell 60% to $277 million due to lower rates of COVID-related hospitalizations.<\/p>\n
Sales of cell therapy products decreased 11% to $432 million, reflecting more competition, while sales of cancer drug Trodelvy rose 7% to $357 million.<\/p>\n
For the full year, Gilead raised the lower end of its adjusted earnings estimate by 10 cents to $8.05 per share, but left the top end unchanged at $8.25.<\/p>\n","protected":false},"excerpt":{"rendered":"
Gilead Sciences said on Thursday its HIV drug sales rose 4% to $5.3 billion in the third quarter including $39 million for its new prevention drug Yeztugo, helping to boost its profit. Overall product sales, however, fell 2% to $7.3 billion due to lower COVID-19 and cancer cell therapy sales. Gilead shares closed down a […]<\/p>\n","protected":false},"author":2,"featured_media":2375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[743,742],"class_list":{"0":"post-2374","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-sitefansalaran-industry-news","8":"tag-but-overall-sales-dip","9":"tag-gilead-posts-higher-profit-on-demand-for-hiv-drugs"},"yoast_head":"\n