By Deena Beasley
(Reuters) -Gilead Sciences stated on Thursday its HIV drug gross sales rose 4% to $5.3 billion within the third quarter together with $39 million for its new prevention drug Yeztugo, serving to to spice up its revenue.
Total product gross sales, nevertheless, fell 2% to $7.3 billion attributable to decrease COVID-19 and most cancers cell remedy gross sales.
Gilead shares closed down a fraction and fell 1% to $117 in after-hours buying and selling.
Wall Road anticipated gross sales of Yeztugo, which has an annual U.S. record worth of about $28,000, at $37.5 million, in keeping with LSEG. The drug is a twice-yearly injection authorized by U.S. regulators in June to forestall HIV in adults and adolescents at excessive danger of contracting the lethal an infection.
Gross sales of the brand new HIV prevention drug have been in step with estimates, however fell wanting “rising expectations,” RBC Capital Markets analyst Brian Abrahams stated in a analysis be aware.
“We’re actually happy with the progress of the Yeztugo launch,” Gilead CEO Daniel O’Day stated in an interview, noting that 75% of U.S. payers have agreed to cowl the drug, and the corporate expects that to extend to 90% by mid-2026.
CVS Well being, which runs the most important U.S. pharmacy profit supervisor, has nonetheless not added Yeztugo to its industrial plans attributable to points together with the drug’s excessive price.
Gilead, based mostly in Foster Metropolis, California, reported a quarterly revenue of $2.43 per share, in contrast with $1.00 a 12 months earlier, when it took a big impairment cost. Complete income rose 3% to $7.77 billion, together with $400 million from a one-time sale of mental property.
The outcomes beat common Wall Road estimates of $2.13 a share on income of $7.45 billion.
Regardless of lower-than-expected product gross sales, earnings per share have been “salvaged” by higher-than-expected contract income and decrease working bills, Abrahams stated. “Nonetheless, we imagine this is able to be seen as a decrease high quality beat.”
Gilead stated gross sales in its liver illness portfolio rose 12% to $819 million, whereas gross sales of COVID therapy Veklury fell 60% to $277 million attributable to decrease charges of COVID-related hospitalizations.
Gross sales of cell remedy merchandise decreased 11% to $432 million, reflecting extra competitors, whereas gross sales of most cancers drug Trodelvy rose 7% to $357 million.
For the complete 12 months, Gilead raised the decrease finish of its adjusted earnings estimate by 10 cents to $8.05 per share, however left the highest finish unchanged at $8.25.
The corporate additionally bumped up the low finish of its expectations for 2025 product gross sales to $28.4 billion from $28.3 billion, whereas the higher finish of the vary was unchanged at $28.7 billion.
(Reporting By Deena Beasley; Modifying by Invoice Berkrot and Richard Chang)
