Gilead Sciences Exceeds Expectations As Remdesivir Success Cushions Slump In HIV Franchise - Gilead Sciences (NASDAQ:GILD)

Gilead Sciences Inc GILD reported Q2 sales of $6.2 billion +21% Y/Y, beating the consensus estimate of $6.07 billion, helped by solid demand for COVID-19 treatment remdesivir and hepatitis C virus products.
Its net profit was $1.52 billion for the quarter, compared with a loss of $3.34 billion a year earlier.
Adjusted EPS reached $1.87, ahead of the consensus of $1.73.
Sales of Veklury (remdesivir) totaled $829 million for the quarter. However, sales of its flagship HIV drugs of $3.9 billion fell 2% Y/Y lagged as the pandemic continued to limit visits to doctors.
On the conference call, Gilead Chief Commercial Officer Johanna Mercier said HIV sales in Europe have begun to recover, but U.S. demand has been slower. "It will take several quarters for treatment to return to pre-pandemic levels," she said.
Sales of Gilead's hepatitis C drugs bounced back in the quarter, rising 23% to $549 million.
Gilead said Veklury sales would continue to be subject to uncertainty since they are tightly linked to COVID-19 hospitalization rates. The Company also said it was no longer pursuing an inhaled version of the drug for COVID-19.
FY2021 Guidance: Gilead narrowed its forecast for adjusted EPS to $6.90 - $7.25. Its prior projection was $6.75 to $7.45 (consensus $7.07).
It expects product sales of $24.4 billion - $25 billion, compared with a previous estimate of $23.7 billion -$25.1 billion.
Excluding Veklury, product sales are expected to be approximately $21.7 billion - $21.9 billion, compared to $21.7 billion - $22.1 billion previously.
Price Action: GILD shares are down 1.48% at $68.80 during the market session on the last check Friday.
Photo by Tony Webster via Flickr

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