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Gilead earnings beat Street estimates, writedown taken on cancer drug

(Reuters) – Gilead Sciences Inc on Thursday mentioned its first-quarter income rose 3%, helped by gross sales of HIV drug Biktarvy and COVID antiviral Veklury, however the firm reported a web loss because it wrote down the worth of its 2020 acquisition of Immunomedics following current trial outcomes for most cancers drug Trodelvy.

The biotech firm mentioned adjusted earnings rose 4% from a yr in the past to $2.12 per share, topping the typical analyst estimate of $1.81, as compiled by Refinitiv.

Income for the quarter rose to $6.6 billion from $6.4 billion, forward of Wall Road estimates of $6.27 billion.

Internet revenue, nevertheless, fell to $12 million from $1.72 billion as Gilead took a $2.7 billion analysis and improvement impairment cost associated to the Immunomedics deal.

Gilead Chief Monetary Officer Andrew Dickinson mentioned on a convention name that the corporate had reassessed the worth of these belongings at $12 billion – down from its earlier view of $14.7 billion.

The corporate in March mentioned a big Trodelvy trial achieved its aim of delaying tumor progress in ladies with the most typical type of breast most cancers, but it surely has not disclosed particular knowledge from the examine.

Dickinson mentioned the accounting change displays the probability of a delayed launch for the drug for that use, in addition to the opportunity of diminished market share in different indications.

“We proceed to see Gilead at a crossroads,” BMO Capital Markets analyst Evan Seigerman mentioned in a analysis be aware, including that he was ready for extra knowledge on the corporate’s most cancers medicine in improvement.

First-quarter gross sales of Trodelvy, which is accredited for treating a uncommon kind of breast most cancers and bladder most cancers, doubled from a yr earlier to $146 million.

Gilead’s HIV drug gross sales rose 2% to $3.7 billion, barely forward of Wall Road estimates.

Gross sales of the COVID-19 remedy remdesivir, which is offered underneath the model identify Veklury, rose 5% to $1.5 billion, exceeding analysts’ estimates of $1.15 billion.

For full-year 2022, the California-based firm mentioned it nonetheless expects adjusted earnings per share of $6.20 to $6.70 on product gross sales of $23.8 billion to $24.3 billion.

Gilead shares had been down about half a proportion level at $61.71 in after hours buying and selling.

Reporting By Deena Beasley; Enhancing by Invoice Berkrot

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