(Bloomberg) -- Gilead Sciences Inc. gave 2022 sales and earnings guidance that fell below analysts' expectations. The company also reported a $1.25 billion legal charge in the fourth quarter.
- The drugmaker said it expects 2022 annual adjusted earnings per share of between $6.20 to $6.70 a share, compared with analysts' estimates for $6.89 a share.
Key Insights
- In the fourth quarter, Gilead reported adjusted earnings per share of $0.69 compared with expectations for $1.57, due in part to the legal charge. But revenue beat estimates on stronger-than-forecast sales of its Covid-19 and HIV drugs.
- Fourth-quarter sales of the Covid treatment remdesivir, or Veklury, declined 30% to $1.4 billion, during a period that fell between the worst of the delta and omicron waves in the U.S. But that still easily beat analysts' expectations for just under $800 million.
- Gilead is trying to expand in cancer drugs to provide a new growth arena outside its mature franchise of HIV drugs. Sales of the breast cancer drug Trodelvy were $118 million in the fourth quarter, roughly in line with expectations. On a conference call, the company confirmed that it expects to get results this quarter from a major trial that could expand use of this drug if it is successful.
- The company said it expected 2022 Veklury sales to decline to $2 billion from over $5.6 billion in 2021, as hospitalizations trend downward for the remainder of this year. Veklury is a standard drug for hospitalized Covid patients, and its sales tend to follow Covid hospitalization rates.
Market Performance
- Gilead shares have fallen 5.7% since the beginning of the year through the close of the market Tuesday. In late trading, they were down 3.6%
Get More
- See more details
- Read the statement
©2022 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
