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Gilead Sciences 4Q Profit Falls on Buyout Costs

From Associated Press (January 26, 2011)


FOSTER CITY, Calif. -- HIV drug maker Gilead Sciences Inc. said Tuesday that its fourth-quarter profit fell 22 percent from a year earlier in part due to the cost of buying Arresto Biosciences.

Gilead said its profit decreased to $629.4 million, or 76 cents per share, from $802.2 million, or 87 cents per share. Excluding the $225 million acquisition of Arresto, restructuring expenses and other one-time items, the company reported a profit of 95 cents per share.

Its revenue fell 1.5 percent to $2 billion from $2.03 billion.

Analysts expected a profit of 94 cents per share and $1.99 billion in revenue, according to FactSet.

The company said revenue from its antiviral drugs rose 5 percent to $1.7 billion during the quarter. Sales of its three-in-one HIV drug Atripla grew 11 percent to $775.2 million, while sales of Truvada increased 2 percent to $681.7 million and sales of the HIV and hepatitis B drug Viread rose 7 percent to $191.1 million.

Revenue from Gilead’s pulmonary arterial hypertension drug Letairis increased 23 percent to $64 million, and sales of its chronic angina drug Ranexa climbed 47 percent to $67.8 million. Sales of its other products dipped 6 percent to $150.4 million. Royalty, contract, and other revenue plunged 70 percent to $68.5 million. That was mostly because of the sharp drop in sales of the flu treatment Tamiflu compared to last year. Swiss drug maker Roche pays royalties to Gilead on sales of the drug.

Tamiflu royalty payments fell 89 percent to $21.9 million.

Gilead also announced Tuesday that the Food and Drug Administration did not accept its application for approval of a new HIV therapy. The drug, which Gilead developed with Tibotec Pharmaceuticals, is a single tablet combining Truvada with Tibotec’s drug candidate rilpivirine.

Gilead said the FDA wants more information, which the company plans to provide by the end of this quarter.

For the year, Gilead’s profit increased 10 percent, to $2.9 billion, or $3.32 per share, from $2.64 billion, or $2.82 per share. Its revenue rose 14 percent, to $7.39 billion from $6.47 billion.

Analysts were expecting earnings of $3.66 per share and revenue of $7.92 billion, according to FactSet.

Shares of Gilead Sciences fell $1.09, or 2.9 percent, to $37.07 in aftermarket trading. The stock lost 15 cents during the day and closed at $38.16.


 

Posted: January 2011


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