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Gilead Stock Perks Up After COVID-19 Med Brings In $2.8B In 2020 Sales; Boosts Dividend by 4.4%

· 02/05/2021 09:45
  • Gilead Sciences Inc (NASDAQ: GILD) reported revenue in the fourth quarter of $7.3 billion, reflecting a 26% increase from the prior-year period revenue total of $5.8 billion, in-line with the consensus estimate. Quarterly earnings of $2.19 came in above expectations of $2.15.
  • There was one primary key to Gilead's earnings beat when COVID-19 drug Veklury (remdesivir) sales topped $1.9 billion, while Gilead's total revenue increased by $1.5 billion Y/Y, thus reflecting that the rest of Gilead's product lineup didn't perform very well. Without Veklury, the company's total revenue slid 7%.
  • Sales from the HIV drug franchise fell 7% Y/Y to $4.3 billion. Loss of exclusivity for Truvada and Atripla especially hurt the revenues. Gilead said that the COVID-19 pandemic also weighed on its HIV sales. Biktarvy and Descovy were bright spots, though, with sales jumping 32% and 9%, respectively.
  • Gilead's hepatitis C virus franchise continued to struggle, in part because of the pandemic, and sales plunged nearly 33%.
  • Combined sales for the company's cell therapy drugs Yescarta and Tecartus totaled $163 million, +34%, and the company's breast cancer drug Trodelvy picked up with the acquisition of Immunomedics and generated $49 million in sales in Q4, boosting Gilead's oncology revenue.
  • For 2021, the company expects revenue to be between $23.7 billion and $25.1 billion and sees adjusted earnings per share between $6.75 and $7.45.
  • At the J.P. Morgan Healthcare Conference presentation, the company outlined its mid-long term growth assumptions that exclude Veklury. The company said that its oncology assets, Trodelvy, magrolimab, and Yescarta would drive the mid-term growth with contribution from HIV therapies based on lenacapavir and assets arising from the inflammation pact with Galapagos. Trodelvy forms the cornerstone for GILD's oncology programs, studied in 10 different tumor types.
  • Concurrently, the company increased quarterly cash dividend by 4.4% to $0.71 per share, payable on March 30, to stockholders of record date on March 15.
  • Price Action: GILD shares have gained 1.61% at $66.89 on the last check Friday.