gilead-sciences

Gilead lowers full-year guidance as sales and profits down in Q2

pharmafile | July 26, 2016 | News story | Manufacturing and Production, Research and Development, Sales and Marketing 2016, Gilead, Q2, results 

Gilead Sciences has announced its financial results from the second quarter of this year, with sales and profits taking a hit and the company lowering its full year forecast for net product sales as a result.

Declining sales of blockbuster hepatitis C drugs, such as Harvoni, contributed to the decline in sales, with figures of $4 billion compared to $4.9 in the same period in 2015. Overall, total revenues were $7.8 billion compared to $8.2 billion last year. Similarly, net income fell from $4.5 billion to $3.5 billion.

Things were not all bad for Gilead, however, as Q2 sales of their HIV drugs beat expectations. TAF-based products such as  Genvoya, Descovy and Odefsey helped to boost sales from $2.7 billion last year to $3.1 billion.

In terms of product pipeline, the FDA granted approval for Gilead’s next-generation hepatitis C drug, Epclusa, during this quarter. It is hoped that this drug will reinvigorate their declining sales in the hepatitis C arena. EU approval of Odefsey also signifies further promise in the HIV field going forward.

Full sales guidance for the year has now been lowered to between $29.5 billion and $30.5 billion, rather than the previously indicated $30 billion to $31 billion.

Markets reacted poorly to the results, with stock falling 4% in after-hours trading at the time of writing.

Sean Murray

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