Gilead (GILD) Q4 Earnings Miss on Legal Settlement Charges
Zacks Investment Research | Feb 01, 2022 09:17PM ET
Gilead Sciences (NASDAQ:GILD), Inc. industry 's decline of 36.7%.
The company reported earnings of 69 cents per share in the quarter, which missed the Zacks Consensus Estimate of $1.53 and declined from $2.19 in the year-ago quarter. The year-over year decline was primarily due to the impact of $1.25 billion charge related to a legal settlement and a charge of $625 million related to the Arcus collaboration opt-in.
Total revenues of $7.2 billion surpassed the Zacks Consensus Estimate of $6.6 billion but decreased 2% from the year-ago quarter due to reduced demand for Veklury (remdesivir 100 mg for injection) for the treatment of COVID-19.
h3 Quarter in Detail/h3Total product sales decreased 2% to $7.2 billion in the quarter under review. However, excluding Veklury, product sales increased 8% year over year to $5.8 billion due to higher demand for flagship HIV therapy Biktarvy (bictegravir 50 mg/FTC 200 mg/tenofovir alafenamide 25 mg (TAF) and favorable pricing dynamics in HIV as well as contributions from breast cancer drug Trodelvy (sacituzumab govitecan-hziy) and Cell Therapy.
HIV product sales increased 7% to $4.5 billion as higher Biktarvy sales and favorable pricing offset the decline in sales due to the loss of exclusivity of Truvada and Atripla in the United States. Biktarvy sales increased 22% year over year in the quarter, reflecting higher demand and favorable pricing dynamics. Truvada and Atripla sales decreased 58% and 29% year over year, respectively, due to the loss of exclusivity in the United States in late 2020.
HCV product sales decreased 7% to $393 million due to fewer patient starts.
Hepatitis B virus (HBV) and hepatitis delta virus (HDV) product sales were up 9% to $265 million. Vemlidy sales grew 17%, driven primarily by uptake in all regions. Hepcludex (bulevirtide) contributed $12 million to sales as launch activities continued across Europe.
Cell Therapy product sales increased 47% to $239 million. Yescarta sales increased to $182 million, driven by continued demand in relapsed or refractory large B-cell lymphoma (LBCL) and strong uptake in relapsed or refractory indolent follicular lymphoma in the United States. Tecartus sales totaled $57 million, driven by increased adoption in mantle cell lymphoma in the United States and Europe and launch in adult patients with relapsed or refractory B-cell precursor acute lymphoblastic leukemia.
Breast cancer drug, Trodelvy, generated $118 million of sales fueled by increased use of the second-line treatment of metastatic triple-negative breast cancer (TNBC) in the United States and Europe as well as second-line metastatic urothelial cancer (UC) in the United States.
Veklury sales decreased 30% to $1.4 billion due to lower demand.
Adjusted product gross margin was 63.3% compared with 80.9% in the year-ago period. Research & development expenses were $2 billion, up from $1.5 billion, as higher R&D expenses primarily reflect a charge related to the Arcus collaboration opt-in and increased Trodelvy and magrolimab clinical activities.
h3 2021 Results/h3Revenues came in at $27.3 billion, up 11% from 2020 due to increased demand for Veklury. Earnings per share increased to $7.28 for 2021 compared with $7.09 in 2020.
h3 2022 Guidance/h3Product sales are projected to be $23.8–$24.3 billion. Total product sales, excluding Veklury, are expected to be $21.8–$22.3 billion. Total Veklury sales are estimated at around $2 billion, reflecting the recent surge in COVID-19 hospitalizations. Earnings per share are expected in the range of $6.20-$6.70. The Zacks Consensus Estimate for sales and earnings per share is pegged at $24.2 billion and $6.89, respectively.
h3 Other Updates/h3The company recently announced that dosing in the phase II study evaluating an investigational once-weekly oral combination treatment regimen of lenacapavir plus islatravir for the treatment of HIV was paused following clinical hold by FDA due to recent safety findings associated with Merck’s the complete list of today’s Zacks #1 Rank stocks here .
The consensus estimate for 2022 earnings for Vertex has increased 33 cents over the past 60 days to $13.65. Shares of VRTX gained 13% in the past year.
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