Gilead 4Q Profit Rises 43 Percent on Atripla Sales

From Associated Press (January 26, 2010)

FOSTER CITY, Calif.--Gilead Sciences Inc. said Tuesday its profit climbed 43 percent in the fourth quarter due to rising sales of its three-in-one HIV drug Atripla.

The company said sales of Atripla, which was approved in the U.S. in July 2006, jumped 50 percent compared to the fourth quarter of 2008. It said Atripla became its best-selling drug during the quarter, as revenue surpassed that of an older drug, Truvada.

Gilead said its profit rose to $802.2 million, or 87 cents per share, from $560 million, or 59 cents per share. Excluding restructuring costs the company earned 93 cents per share. Its revenue grew 42 percent to $2.03 billion from $1.43 billion.

According to a Thomson Reuters estimate, analysts expected a profit of 85 cents per share and $1.93 billion in revenue.

Total HIV drug sales advanced 27 percent to $1.62 billion, the company said. Sales of Atripla rose to $697.8 million, and Truvada revenue increased 19 percent to $670.7 million. It also reported $178.3 million in sales of Viread, which was first approved as an HIV drug but was recently cleared as a treatment for hepatitis B. Viread sales picked up 10 percent.

Truvada is a combination of Viread and another Gilead drug, Emtriva. Atripla contains those two drugs and adds a third, Bristol-Myers Squibb Co.'s Sustiva.

Gilead said revenue from its high blood pressure drug Letairis rose 44 percent to $52.2 million, and sales of the angina drug Ranexa totaled $46 million. Revenue from other products, including the fungal infection treatment AmBisome, hepatitis B drug Hepsera, and Emtriva, an older HIV drug, slipped to $159.5 million.

For the year, Gilead said its profit grew 33 percent to $2.64 billion, or $2.82 per share, from $1.98 billion, or $2.06 per share. Revenue increased 31 percent, to $7.01 billion from $5.34 billion.

In aftermarket trading, Gilead stock rose $3.02, or 6.7 percent, to $47.89 from a closing price of $44.87.

Posted: January 2010


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