Author: Deena Beasley and Michael Erman
(Reuters) – Gilead Sciences Inc. released worse-than-expected quarterly results on Thursday, but raised its sales forecast to 2020 to include revenues from antiviral remdesivirus, one of the few treatments to help COVID-19 patients.
Gilead said he expects revenue to be $ 23 billion to $ 25 billion by 2020, up from a previous range of $ 21.8 billion to $ 22.2 billion.
“We think that means up to $ 1 billion to $ 3 billion of remdesivir, … a positive result that was not expected at the beginning of the year,” said Jefferies analyst Michael Yee.
According to the Refinitive survey, Gilead’s second-quarter turnover fell nearly 10% year-on-year to $ 5.1 billion, an average of $ 5.3 billion.
The results reflected poor sales of Gilead hepatitis C drugs and major HIV treatment during coronavirus pandemic blockades. The company said it expects sales of HIV and hepatitis C drugs to resume in the current third quarter.
Adjusted second-quarter earnings of $ 1.11 per share did not average analysts by 34 cents.
Shares of Gilead, which closed about 1% in ordinary trading, fell 3.5% to $ 69.80 in expanded trading.
Sales of HIV drugs from Gilead fell 1% year-over-year to $ 4 billion in the second quarter, while sales of hepatitis C drugs fell 47% to $ 448 million due to fewer new patients and competition from competing drugs.
Gilead began commercial sales of remdesivir for infusion to hospitalized patients this month. The drug received emergency use by the US Food and Drug Administration in May after demonstrating its ability to shorten hospital stays for COVID-19 patients, but does not yet have full US approval. It was approved in Japan.
Demand for remdesivir continues to exceed supply in many parts of the world.
Gilead CEO Daniel O’Day said in a conference call that the company expects to produce enough remdesivirus to meet global demand in real time by the end of September.
Gilead said it still expects to produce 2 million or more remdesivir treatment cycles cumulatively in 2020 and that its revenue outlook reflects expected sales of up to $ 1.5 million.
The company said it had started a clinical trial of a remdesivir inhalation formulation to deliver the drug more effectively to lung tissue. Gilead also plans to study the medicine in patients with an earlier stage of COVID-19.
The US National Institute on Allergies and Infectious Diseases is currently conducting a trial of remdesivir in combination with the anti-arthritis drug Olumiant from Eli Lilly & Co., and these results are expected next month.
To date, only remdesivir and the generic steroid dexamethasone have been demonstrated in rigorous clinical trials to assist patients with COVID-19.
(Report by Deena Beasley and Michael Erman; Edited by Bill Berkrot and Leslie Adler)