Gilead Sciences, Inc. 's ( GILD ) first quarter
2013 earnings (excluding special items but including stock option
expense) of 45 cents per share missed the Zacks Consensus Estimate
of 47 cents per share. Lower-than-expected revenues were
responsible for the earnings miss during the first quarter of 2013.
The company's first quarter 2013 adjusted earnings beat the
year-ago earnings of 30 cents.ATHERSYS INC (ATHX): Free Stock Analysis ReportCLEVELAND BIOLB (CBLI): Free Stock Analysis
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Revenues climbed 11% to $2.53 billion but missed the Zacks
Consensus Estimate of $2.56 billion. The year-over-year increase in
total revenue was attributable to higher product sales. Foreign
exchange (Fx) fluctuations adversely impacted product sales by $7.3
The First Quarter in Details
Product sales climbed 8.1% to $2.39 billion, driven by anti-viral
products, such as Viread (up 10% to $210.3 million) and
Complera/Eviplera launched in 2011 (up 184% to $148.2 million).
Stribild - an HIV combination pill - launched in the US in Aug
2012, contributed $92.1 million to total revenue in the first
quarter of 2013, up 130.3% sequentially. However, HIV drugs, such
as Truvada (down 8%) and Atripla (down 1%), performed
disappointingly in the first quarter of 2013.
Antiviral product sales for the quarter grew 7% to $2.06 billion.
The US market contributed $1.16 billion (up 7%) to antiviral
product sales, while Europe contributed $750.4 million (up 8%).
Other products including Letairis, Ranexa and AmBisome recorded
sales of $118.1 million (up 35.3%), $96.3 million (up 15.7%) and
$85.3 million (up 0.6%) respectively. Gilead's royalty, contract
and other revenues climbed 86.4% to $138.1 million.
On the operational front (excluding special items but including
stock option expense), operating margin climbed to 42.1% from 36.7%
a year ago. Research & development (R&D) expenses climbed
8.2% to $486.9 million in the first quarter of 2013 while selling,
general and administrative (SG&A) expenses declined 14.8% to
$363.5 million. The rise in R&D expenses was primarily driven
by Gilead's efforts to develop its pipeline. Interest expenses
declined during the first quarter of 2013 due to the repayment of
bank debt pertaining to Gilead's acquisition of Pharmasset Inc. in
2013 Projection Backed
Gilead maintained its guidance for 2013, which was originally
issued in Feb 2013 while releasing its fourth quarter 2012 results.
The company still expects product revenue in the range of $10-$10.2
billion, reflecting an increase of 6%-9% over 2012 levels.
Adjusted product gross margin for 2013 is still projected in the
range of 74%-76%. Adjusted R&D expenses continue to be
projected in the range of $1.8-$1.9 billion. SG&A expenses are
still forecast in the range of $1.55-$1.65 billion.
Gilead carries a Zacks Rank #3 (Hold). The companies that look
better-positioned include Osiris Therapeutics (
OSIR ), Athersys, Inc. ( ATHX ) and
Cleveland BioLabs, Inc. ( CBLI) . All three are
Zacks Rank #1 (Strong Buy) stocks.