Gilead Science (GILD) crushed third-quarter expectations on Thursday as sales of its cancer drug nearly doubled. The results drove GILD stock higher.
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The upbeat report follows recent approvals for personalized cancer drugs Yescarta and Tecartus in Europe. Both belong to the CAR-T class of drugs, in which the patient’s own immune cells are taught to find and destroy cancer. On a year-over-year basis, sales of Gilead’s cancer drugs grew by 79%.
“In the field of oncology, there is growing demand for cellular and Trodelvy therapies,” CEO Daniel O’Day said in a written statement. Trodelvy treats breast and uterine cancer. “Overall, we are seeing incredible progress from a commercial and clinical perspective and look forward to building on this momentum.”
Out of hours trading on stock market today, GILD stock rose 1.7% to 71.40. In normal trading, the stock fell 0.9% to 70.20. Stocks are forming now disc base with one buy points at 74.22, according to MarketSmith.com.
GILD Stock: HIV drug Biktarvy goes strong
Across all products, Gilead’s revenue fell 5% to $7 billion. But that’s much better than the $6.13 billion estimate, according to GILD stock analysts polled by FactSet.
Adjusted earnings fell 28% to $1.90 per share but topped forecasts at $1.43. Gilead notes that earnings have plummeted following the acquisition of MiroBio, a privately held, UK-based biotech company engaged in testing drugs that selectively block portions of Immune System.
The company also recorded lower gross margin and product sales.
Among cancer treatments, the best developments come from Yescarta. Revenue increased 81% to $317 million. But sales for smaller contributors Tecartus and Trodelvy still grew by 72% and 78%, respectively.
In addition to strong cancer drug sales, Gilead reported 22% growth for its top HIV drug, Biktarvy. Biktarvy generated $2.77 billion in revenue in the third quarter, accounting for nearly 62% of total HIV drug sales. Gilead also noted that it has won approval for a new HIV drug, lenacapavir, in Europe. This medication requires a less frequent dose of one injection every six months.
GILD stock drops, Covid treatment Yescarta generates $925 million. That sales fell 52% amid fewer Covid hospitalizations and less severe infections.
Easy Guide Tops Forecast
During the year, Gilead led product sales from $25.9 billion to $26.2 billion. That’s $1.3 billion more, at the midpoint, than the biotech company’s guidance three months ago.
Excluding Veklury, Gilead expects full-year revenue of $22.5 billion to $22.8 billion, up slightly from its previous projection of $22 billion to $22.5 billion.
The company also expects adjusted earnings of $6.95-$7.15 per share, up 50 cents at the midpoint.
All indexes topped GILD stock analysts’ average estimates for adjusted profit of $6.51 per share and $25.28 billion in revenue.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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