Gilead posts weaker-than-expected quarterly results as sales lag during pandemic

Analysts had forecast a profit of $1.45 per share. Second-quarter sales of Gilead's HIV drugs fell 1% from a year earlier to $4 billion, while sales of its drugs to cure hepatitis C fell 47% to $448 million due to fewer new patients and competition from rival drugs.

Gilead Sciences Inc, maker of the widely-used coronavirus treatment remdesivir, on Thursday posted worse-than-expected second-quarter results due to weak sales of its hepatitis C drugs and flagship HIV treatments during pandemic lockdowns.

The company said it expects a gradual recovery for its HIV drugs and hepatitis C sales to begin regaining momentum in the third quarter. Adjusted earnings for the quarter were $1.11 a share. Analysts had forecast a profit of $1.45 per share.

Second-quarter sales of Gilead's HIV drugs fell 1% from a year earlier to $4 billion, while sales of its drugs to cure hepatitis C fell 47% to $448 million due to fewer new patients and competition from rival drugs. Gilead reported a net loss of $3.34 billion, or $2.66 per share, due mostly to a nearly $5 billion charge from its acquisition of cancer drugmaker Forty Seven. That compares with a profit of $1.88 billion, or $1.47 per share, a year earlier.

The company began commercial sales in July of remdesivir, which is given to hospitalized patients by intravenous infusion. The antiviral drug was granted emergency use authorization by the U.S. Food and Drug Administration in May after it demonstrated an ability to shorten hospital stays for COVID-19 patients. Gilead had previously been donating the drug to hospitals, but demand continues to outstrip supply in many parts of the world.

So far, only two drugs - remdesivir and the generic steroid dexamethasone - have been shown in rigorous clinical trials to help patients with COVID-19. 

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