Gilead Sciences Shares Rise On Higher Q2 Profit, Vertex Drug Setback

(RTTNews) - Biotechnology company Gilead Sciences Inc. (GILD) on Thursday reported a 9 percent increase in profit for the second quarter from last year, helped by higher demand for its newer HIV drugs. Revenue for the quarter beat analysts' expectations.

Gilead's shares rose almost 5 percent in extended trades after rival Vertex Pharmaceuticals Inc. (VRTX) said that the U.S. Food and Drug Administration has placed a partial clinical hold on the ongoing mid-stage U.S. study of its experimental hepatitis C drug, known as VX-135.

The setback to Vertex bolsters Gilead's own prospects. In early June, the FDA granted priority review to Gilead's New Drug Application or NDA for sofosbuvir, a once-daily oral nucleotide analogue inhibitor for the treatment of chronic hepatitis C virus infection.

The FDA grants priority review status to drug candidates that may offer major advances in treatment over existing options. Gilead filed the NDA for sofosbuvir on April 8, and FDA has set a target review date of December 8.

Gilead, the world's largest maker of HIV drugs, reported second-quarter net income of $772.61 million or $0.46 per share, compared with $711.56 million or $0.46 per share in the year-ago period.

Excluding items, adjusted earnings for the quarter were $839.73 million or $0.50 per share, compared with $767.28 million or $0.49 per share in the same period last year. On average, twenty five analysts polled by Thomson Reuters expected the company to report earnings of $0.50 per share. Analysts' estimates typically exclude special items.

Total revenues for the quarter increased 15 percent to $2.77 billion from $2.41 billion in the prior-year period. Analysts had a consensus revenue estimate of $2.66 billion.

Of the total revenues, product sales grew 14 percent to $2.66 billion. Product sales, driven primarily by growth in Gilead's antiviral franchise, increased 20 percent in the U.S. and 4 percent in Europe compared to the year-ago period.

Antiviral product sales increased 15 percent to $2.31 billion, reflecting demand for the company's new single tablet regimen products, specifically Complera/Eviplera and Stribild.

Sales of key HIV drugs Atripla rose 4 percent to $938.11 million and Truvada grew 3 percent to $807.78 million. HIV drug Stribild generated sales of $99.39 million for the quarter. Stribild was launched by the company in the third quarter of 2012.

Sales of Complera/Eviplera more than doubled to $188.68 million, and HIV and chronic hepatitis B drug Viread sales rose 16 percent to $250.19 million. Cardovascular products, including Letairis and Ranexa, recorded a 19 percent increase in sales to $234.9 million.

GILD closed Thursday's regular trading session at $60.86, up $0.98 or 1.64 percent on a volume of 11.18 million shares. In after-hours, the stock further gained $2.89 or 4.75 percent to $63.75.