By Michael Erman and Sriparna Roy
(Reuters) -Gilead Sciences Inc on Thursday reported a higher-than-expected fourth-quarter profit driven by strong demand for its HIV and cancer drugs, while COVID-19 antiviral Veklury had sales that were double Wall Street estimates.
The U.S. biotech company also forecast 2023 sales of $26 billion to $26.5 billion, ahead of analyst expectations of $25.8 billion, and adjusted earnings of $6.60 to $7 per share. The midpoint of the earnings forecast is also above analysts’ estimates for $6.73 per share.
Gilead shares rose 3.8% to $84.48 in extended trading.
Sales of COVID-19 treatment remdesivir, sold under the brand name Veklury, were $1 billion, far beyond the $511 million analysts had expected even as they slowed 26% from the previous year.
While Veklury sales declined by about half in the United States and Europe as COVID hospitalization rates fell, they tripled in other international markets.
Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.
Gilead Chief Commercial Officer Johanna Mercier said the company believes the model for the COVID-19 treatment is “quite sustainable moving forward.”
“It’s still the only antiviral indicated at the hospital level at this point,” Mercier said on a conference call with investors. “In many countries around the world, it is the treatment of choice when they decide to treat hospitalized patients.”
The company said adjusted profit rose to $1.67 per share, ahead of analyst expectations of $1.50, according to Refinitiv data, and up from 69 cents per share a year earlier, when it took $1.85 billion in charges mostly for a legal settlement.
Quarterly revenue rose 2% to $7.4 billion, topping analysts’ estimates of $6.64 billion.
Gilead’s HIV sales increased 5% to $4.8 billion in the quarter, with Biktarvy rising 15% to $2.9 billion versus the $2.8 billion analysts expected.
Descovy sales rose 13% to $537 million, outstripping the analysts’ forecast of $495 million.
Gilead’s cancer franchise also saw sales increase by 71% to $419 million. Yescarta, a CAR-T lymphoma treatment, booked $337 million, while leukemia and lymphoma treatment Tecartus came in at $82 million.
(Reporting by Sriparna Roy in Bengaluru, Caroline Humer and Michael Erman in New York; Editing by Bill Berkrot)
