Gilead's third-quarter earnings of $1.79 per share surpassed the
Zacks Consensus Estimate of $1.64. Moreover, reported earnings were
way above the year-ago figure of $0.49 per share. Total revenues of
$6.04 billion were no comparison to the year-ago figure of $2.78
billion. However, we are concerned about the slowdown in company s
blockbuster HCV drug, Sovaldi sales (down 19.7% sequentially), due
to physicians delaying the initiation of treatments in the U.S. in
anticipation of Harvoni's approval. We prefer to be on the
sidelines until we get more visibility on Harvoni uptake. The
Express Scripts-AbbVie deal is expected to a overhang on the stock.
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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