Gilead Sciences (GILD) added to the list of large-cap biotech misses Thursday, leading Gilead stock to crumble as HIV treatment sales came in light.
Product sales — which exclude other sources of revenue — lagged forecasts by $250 million, Mizuho Securities analyst Salim Syed said in a report to clients. That was driven by Biktarvy sales, which were also short by that much.
RBC Capital Markets analyst Brian Abrahams classified the quarter as “soft.” Total revenue also lagged projections, while good operating expenses helped keep earnings in line. But Abrahams retained his outperform rating on Gilead stock ahead of a catalyst-rich 2021.
“While we believe investors would have liked to have seen a stronger performance from their core HIV franchise into key 2021 oncology readouts, at a 10 times multiple, we believe there remains considerable room for upside,” he said in a report to clients.
Gilead Stock Falls On Light Sales
In after-hours trading on the stock market today, Gilead stock slipped 2.3% near 62.40.
Total revenue increased 16% to $6.42 billion. But that missed forecasts for $6.74 billion. The company earned $2.08 per share, minus some items, matching expectations. On a year-over-year basis, earnings popped 24%.
Sales of HIV treatments declined 12% to $3.7 billion as hepatitis C drug revenue fell 30% to $510 million. Cancer drugs Yescarta and Tecartus generated $160 million and $31 million, respectively. Trodelvy, which Gilead recently acquired, brought in $72 million.
Revenue from Covid treatment Veklury was $1.5 billion.
For the year, Gilead expects adjusted income of $6.75-$7.45 per share and $23.7 billion to $25.1 billion in full-year product sales, which exclude other sources of revenue. Gilead stock analysts called for earnings of $7.16 per share on $24.9 billion in sales.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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