Gilead's fourth-quarter earnings of $2.38 per share surpassed the
Zacks Consensus Estimate of $2.27. Moreover, reported earnings were
way above the year-ago figure of $0.52 per share. Total revenues of
$7.3 billion were no comparison to the year-ago figure of $3.1
billion. We are pleased with the company's dividend and repurchase
program, which should increase shareholder return. We are
nevertheless concerned about additional pricing measures to reduce
HCV spending in the form of rebates and discounts which could lead
to a slowdown in Harvoni sales in 2015. The company's 2015 revenue
guidance came in below our expectations. Thus we maintain a Neutral
recommendation on the stock.
Gilead Sciences, Inc., a biopharmaceutical company, focuses on
the discovery, development and commercialization of drugs for
treating HIV/AIDS, liver diseases such as hepatitis B virus (HBV)
and hepatitis C virus (HCV), respiratory, oncology /inflammation
and cardiovascular related diseases. Lead products at Gilead
include HCV therapy, Sovaldi and Harvoni, apart from Truvada,
Viread, Atripla, Complera, Stribild and Emtriva for the treatment
of HIV in adults. Besides the HIV franchise, Gilead's other
products include AmBisome (treatment of fungal infection) and
Letairis (treatment of pulmonary arterial hypertension). Gilead's
portfolio also includes Cayston (improvement of respiratory
symptoms in patients suffering from cystic fibrosis with
pseudomonas aeruginosa) and Ranexa (chronic angina). The FDA
approval of Zydelig (idelalisib 150 mg) for treating three cancer
forms has further boosted Gilead's product portfolio.
Gilead operates in North America, South America, Europe and
Asia-Pacific. Total revenues at Gilead came in at $11.20 billion in
2013, up 15%. Strong sales of the company's antiviral products
contributed to the increase. In 2013, total antiviral products
accounted for 86.5% of product sales. Total product sales climbed
15% to $10.80 billion in 2013. The company, founded in 1987, is
headquartered in Foster City, CA.
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