Gilead Sciences Inc. (GILD.O) beat Wall Street forecasts for its profit and revenue for the second quarter last Tuesday, due to the rising demand for HIV treatments. Now, the U.S. biopharmaceutical company increased its sales estimates for the full year.
The California-based drugmaker said it now anticipates sales in 2019 to be around $22.6 billion up to $22.1 billion, higher from its previous estimation ranging from $21.3 billion up to $21.8 billion.
Gilead stated that the adjusted earnings for the second quarter ended at $1.82 each share, surpassing the average estimate by analysts by 10 cents, based on the IBES data procured by Refinitiv.
Michael Yee, an analyst from Jefferies, said that results from Gilead were very formidable as they raised their guidance by around $300 million.
Yee added that Biktarvy, Gilead’s newest HIV drug, was strong. A striking surprise is that the Hepatitis C business plunged again by $100 million bucks, which was up typically, said by the Jefferies analyst.
HIV drugs sales account for 71% of the total sales, which ticked from $3.67 billion in the previous year to $4.04 billion this 2019, $1.12 billion in sales is attributed to Biktarvy.
Sales of Hepatitis C drug plunged from $1.0 billion to $842 billion, but higher by $714 million than the analysts’ forecast.
Majority of the patients has already been cured of the liver-attacking virus. Competing products, such as AbbVie, also have gained a market portion of the dwindling patient pool.
The quarter’s total revenue raise lightly from $5.65 billion to $5.69 billion, beating estimates from analysts at only $5.53 billion.
The biotechnology company is now extending to new therapeutic fields. This venture follows the arrival of a Roche veteran, CEO Daniel O’Day, who took charge last March. O’Day strengthened the drug advancement pipeline of the company internally and complimented it through partnerships and acquisitions, his main priority.
Gilead previously announced a $5.1 billion worth of investment in Galapagos NV, a European biotech company, heightening a partnership that will provide the former access to arthritis and fibrosis treatments.
Gilead Sciences shares plunged by 13 cents, ending at $66.96 in the after-hours trading.