By Deena Beasley and Michael Erman
(Reuters) – Gilead Sciences Inc released worse-than-expected quarterly results on Thursday, but raised its 2020 sales forecast to include revenue from its antiviral drug remdesivir, one of the only treatments shown to help patients with COVID-19.
Gilead said it expects total 2020 sales of $ 23 billion to $ 25 billion, above its previous range of $ 21.8 billion to $ 22.2 billion.
“We believe this implies up to $ 1 trillion to $ 3 trillion of remdesivir, … a positive result that was not expected earlier this year,” said Jefferies analyst Michael Yee.
Gilead’s second-quarter sales fell nearly 10% from a year earlier to $ 5.1 billion, below the average analyst estimate of $ 5.3 billion, according to Refinitiv.
The results reflected weak sales of Gilead’s hepatitis C drugs and flagship HIV treatments during the coronavirus pandemic attacks. The company said it expects its HIV medications and hepatitis C sales to begin to pick up momentum in the current third quarter.
Adjusted second-quarter earnings of $ 1.11 per share fell short of analyst average estimates at 34 cents.
Gilead’s shares, which closed around 1% in regular trade, fell 3.5% to $ 69.80 in extended trade.
Second-quarter sales of Gilead’s HIV medications fell 1% from a year earlier to $ 4 billion, while sales of medications to cure hepatitis C fell 47% to $ 448 million due to fewer patients. new and rival drug competition.
Gilead began commercial sales of remdesivir this month, which is administered to hospitalized infusion patients. The drug received emergency use authorization from the US Food and Drug Administration in May after it demonstrated the ability to shorten hospital stays for patients with COVID-19, but is not yet approved Complete from the US It was approved in Japan.
The demand for remdesivir continues to outstrip supply in many parts of the world.
Gilead chief executive Daniel O’Day said in a conference call that the company expects by the end of September to produce enough remdesivir to meet global demand in real time.
Gilead said it still expects to manufacture 2 million or more remdesivir treatment courses cumulatively in 2020, and its revenue outlook reflects expected sales of up to 1.5 million courses this year.
The company said it launched a clinical trial of an inhaled formulation of remdesivir, with the goal of more effectively delivering the drug to lung tissue. Gilead also plans to study the drug in patients with early-stage COVID-19.
The U.S. National Institute of Allergy and Infectious Diseases is conducting a test of remdesivir in combination with Olumiant, an arthritis medication from Eli Lilly & Co, and those results are expected next month.
So far, only remdesivir and the generic steroid dexamethasone have been shown in rigorous clinical trials to help patients with COVID-19.
(Reports by Deena Beasley and Michael Erman; Edition by Bill Berkrot and Leslie Adler)
