Shares of biotech company Gilead Sciences have experienced a decline of 4.4% this year, and a total slide of 11.3% since the disappointing results of a closely watched lung cancer drug trial were announced on January 22nd. The drug, called Trodelvy, was projected to generate $2.3 billion in revenue by 2026 according to FactSet.
In the recently released earnings report for the fourth quarter of 2023, Gilead reported non-GAAP diluted earnings of $1.72 per share, slightly below the estimated $1.76 per share consensus by FactSet. The company also announced that sales for the quarter reached $7.1 billion, meeting expectations.
Similar to other companies in the industry, Gilead has faced a decline in revenue since 2021, largely due to the decrease in sales of Covid-19 therapeutics. In 2023, the company’s total product sales amounted to $26.9 billion, down from $27.3 billion in 2022. Sales of their Covid-19 antiviral drug, Veklury, which was the first treatment approved for Covid-19 in the U.S., dropped by 44% to $2.2 billion in 2023 compared to the previous year.
Gilead Reports Decline in Sales for Fourth Quarter
Gilead, a leading pharmaceutical company, announced that its sales for the fourth quarter of 2022 were down by 4% compared to the previous year. The decline can be attributed to a decrease in sales of their HIV products, as well as a drop in Veklury sales. Additionally, the company reported a 2% decrease in sales compared to the same quarter last year, which they attribute to a decline in prices.
Notable HIV Product Sales
Despite the overall decline, Gilead saw positive growth in certain areas. Sales of their HIV treatment drug, Biktarvy, reached $3.1 billion, slightly below the FactSet consensus estimate of $3.2 billion. However, this still represented a 7% increase from the same period in 2021. Sales of Descovy, another HIV product that can be used for treatment and prevention, totaled $509 million for the quarter, aligning closely with the $537 million consensus estimate.
Promising Cancer Drug Sales
Gilead’s cancer drugs, including Trodelvy, performed well with sales reaching $765 million in the third quarter. This marked growth from $614 million during the same period last year.
Outlook for 2024
Looking ahead, Gilead provided its sales forecast for 2024. The company expects sales to range between $27.1 billion and $27.5 billion, slightly higher than the FactSet consensus estimate of $27.1 billion. Gilead is also anticipating non-GAAP diluted earnings per share of $6.85 to $7.25, surpassing the current consensus estimate of $6.75 per share.
In summary, Gilead faced a decline in sales for the fourth quarter primarily due to decreases in Veklury and HIV product sales. However, the company experienced growth in specific areas, such as Biktarvy and their cancer drug portfolio. Gilead maintains a positive outlook for 2024, expecting higher sales and earnings compared to current estimates.
