A lab technician inspects filled vials of investigational coronavirus disease (COVID-19) treatment drug remdesivir at a Gilead Sciences facility in La Verne, California.
Gilead Sciences Inc | Reuters
Gilead Sciences reported stronger-than-expected third-quarter earnings on Wednesday with revenue rising 17% from a year earlier, driven by sales of coronavirus treatment remdesivir.
Gilead’s antiviral drug remdesivir, under the brand name Veklury, last week became the first and only treatment granted full approval by the U.S. Food and Drug Administration for treating Covid-19 patients. The coronavirus treatment generated $873 million in sales during the third quarter, mostly in the U.S., the company said.
Gilead’s total product sales were $6.5 billion in the third quarter, up from $5.5 billion a year ago and more than the $6.3 billion analysts expected. The company reported adjusted earnings of $2.11 per share, higher than the $1.90 per share projected by analysts surveyed by Refinitiv. Adjusted EPS was $1.64 in the same quarter a year earlier.
Excluding remdesivir, the company’s total product sales increased 2% to $5.6 billion compared with a year earlier. The California-based company said remdesivir’s revenue is “subject to significant volatility and uncertainly” depending on the global health environment.
The company said in August that it planned to produce more than 2 million treatment courses of remdesivir by the end of the year and anticipated being able to make “several million more” in 2021.
Gilead said sales in its HIV drug business increased 8% to $4.5 billion during the third quarter. Sales for its HCV franchise fell 31% to $464 million as people in the U.S. and Europe had fewer health screenings due to the pandemic.
This is a developing story. Please check back later for updates.