Gilead swings to loss in Q3 on charges from Galapagos collaboration

Headline results for the third quarter:

Product sales

$5.5 billion

Versus $5.5 billion

Revenue

$5.6 billion (in line with forecast)

Versus $5.6 billion

Loss

$1.2 billion

Versus profit of $2.1 billion

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

 

What the company said:

Gilead Sciences explained that its net loss for the third quarter includes up-front collaboration and licensing expenses of $3.9 billion related to the company's 10-year, global R&D partnership with Galapagos announced in July.

The drugmaker also highlighted several executive personnel changes recently, including the appointment of Andrew Dickinson as chief financial officer, as well as the appointment of Merdad Parsey as chief medical officer, both of whom will assume their new roles on November 1.

 

Other results:

  • US product sales: $4.2 billion, versus $4.1 billion in the year-ago period
  • European product sales: $804 million, compared with $873 million in the same period last year
  • Total HIV sales: 4.2 billion, up from $3.7 billion, primarily driven by higher sales volume as a result of continued Biktarvy uptake
    • Biktarvy: $1.3 billion, up from $386 million
    • Genvoya: $978 million, down from $1.2 billion
    • Truvada: $721 million, down from $757 million
    • Odefsey: $436 million, up from $423 million
    • Descovy: $363 million, down from $406 million
  • Total hepatitis C sales: $674 million, down from $902 million, mainly due to "competitive dynamics"
    • Epclusa and authorised generic version: $516 million, up from $477 million
    • Harvoni and authorised generic version: $124 million, down from $311 million
  • Yescarta: $118 million, up from $75 million, driven by a higher number of therapies provided to patients and continued expansion in Europe

 

Looking ahead:

Gilead bumped up the lower end of its product sales forecast from $21.6 billion previously to $21.8 billion, with the higher end of the range staying at $22.1 billion. 

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