Gilead lifts annual sales guidance, despite drop in third-quarter revenue

Headline results for the third quarter:

Product sales

$5.5 billion

Versus $6.4 billion

Revenue

$5.6 billion (forecasts of $5.4 billion)

-14%

Profit

$2.1 billion

-22%

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

Gilead announced in July that CEO John Milligan will step down at the end of the year, while executive chairman John Martin is also set to step down when a new chief executive is named. Milligan, who has spent nearly 30 years at Gilead, on Thursday thanked colleagues "and everyone who supported us in our mission," adding that the company has no specific criteria for choosing his successor, but hopes to have a new CEO named before the end of the year.

 Other results:

  • US product sales: $4.1 billion, down from $4.5 billion
  • European product sales: $873 million, down from $1.2 billion
  • Total HIV sales: $3.7 billion, up from $3.3 billion
    • Genvoya: $1.2 billion, up from $988 million
    • Truvada: $757 million, down from $811 million
    • Odefsey: $423 million, up from $296 million
    • Descovy: $406 million, up from $316 million
    • Biktarvy: $386 million, topping forecasts of around $325 million
  • Total hepatitis C product sales: $902 million, down from $2.2 billion
    • Epclusa: $477 million, down from $882 million
    • Harvoni: $311 million, down from $973 million
  • Yescarta: $75 million, missing estimates of about $88 million.

What analysts said:

The results "are consistent with a trajectory towards growing again and first quarter 2018 was probably the trough," remarked Jefferies analyst Michael Yee.

Looking ahead:

Gilead now expects annual sales of between $20.8 billion and $21.3 billion, lifted from an earlier estimated range of $20 billion to $21 billion, while analysts predicted full-year revenue of $21.7 billion. The company reiterated that earnings per share for 2018 are predicted to be in the range of $1.50 to $1.60.

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