Gilead Shares Drop as Profit Guidance Falls Below Forecast

(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.

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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.