Gilead’s revenue declines on waning sales of Covid-19 drug
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2 min read . Updated: 02 Feb 2022, 06:37 PM IST Decrease in revenue for remdesivir comes amid falling pandemic hospitalizations
Gilead Sciences Inc.’s revenue fell in the fourth quarter, as sales of its Covid-19 treatment remdesivir waned amid greater vaccine availability and declining hospitalization numbers.
The biopharmaceutical company posted $7.24 billion in revenue for the quarter, above analysts’ expectations of $6.62 billion. Gilead reported $7.42 billion in revenue for the same period last year.
The decline in revenue was led by a drop in sales of remdesivir, which sells under the brand name Veklury. The company said sales are generally affected by Covid-19-related rates of infections and hospitalizations. The surge in hospitalizations caused by the Delta variant in the fall slowed down as the less-virulent Omicron variant took hold. The Omicron variant has caused greater numbers of infections but lower rates of hospitalization where remdesivir is used the most.
Gilead said the decrease in revenue for the fourth quarter was partially offset by favorable pricing dynamics in its HIV product segment. Sales of Biktarvy increased 22% to $2.53 billion for the quarter from $2.07 billion for the same period last year.
“Veklury is playing a critical role in the pandemic and Biktarvy remains the most prescribed HIV treatment in the U.S. We have all the elements in place for a strong year and a strong decade," Chief Executive Daniel O’Day said in prepared remarks.
The Foster City, Calif.-based company posted net income attributable to the company of $382 million, down from $1.55 billion in the year-ago period. On a per-share basis, the company posted a gain of 30 cents, compared with a gain of $1.23 a share a year earlier.
On an adjusted basis, Gilead logged a gain of 69 cents a share. Analysts polled by FactSet expected $1.59 a share.
Gilead’s earnings included a $1.25 billion charge related to a patent settlement with GlaxoSmithKline PLC’s ViiV Healthcare related to Gilead’s HIV drug Biktarvy, as well as a charge of $625 million related to a Arcus Biosciences Inc. collaboration opt-in.
The settlement with GSK also requires Gilead to pay a 3% royalty on U.S. Biktarvy sales until Oct. 5, 2027.
Selling, general and administrative expenses were $1.65 billion. Analysts polled by FactSet expected $1.44 billion.
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Gilead shares fell 3.6% in after-hours trading.
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