Gilead quarterly profit beats Street estimates, revenue up 5%

By Deena Beasley

(Reuters) -Gilead Sciences on Thursday reported second-quarter profit that handily beat Wall Street estimates, driven by lower operating expenses and higher product sales, and the drugmaker raised its outlook for full-year earnings.

The Foster City, California-based company posted a quarterly profit of $2.01 per share excluding items, on revenue of $7 billion, up from $1.34 a share and revenue of $6.6 billion in the year-ago quarter.

Wall Street analysts had expected an adjusted profit of $1.60 per share on revenue of $6.72 billion, according to LSEG data.

It was a "mixed albeit solid quarter unlikely to dramatically change perceptions," RBC Capital Markets analyst Brian Abrahams said in a research note.

He said Gilead's solid tumor oncology franchise continues to face commercial and developmental challenges, but HIV remains steady and the success of long-acting agents has lifted sentiment.

Gilead shares, which rose 2% in regular Nasdaq trading on Thursday, were little changed at $75.60 after hours.

“It was a very strong quarter of commercial execution," CEO Daniel O'Day told Reuters in an interview, citing recent data showing that the company's long-acting injectable drug lenacapavir was more effective in preventing HIV infection in women compared to a daily pill.

He said the company also looks forward to a potential U.S. launch of seladelpar, a liver drug acquired with Gilead's purchase earlier this year of CymaBay, for primary biliary cholangitis. The U.S. Food and Drug Administration is slated to decide on the drug's approval by next Wednesday.

Quarterly sales of HIV drug Biktarvy rose 8% to $3.2 billion, which was in line with analysts' estimates. Sales of its COVID-19 treatment Veklury fell 16% to $214 million, but still came in well above Wall Street expectations of $190 million.

Oncology sales rose 15% to $841 million, while sales of liver disease drugs rose 17% to $832 million.

For full-year 2024, Gilead said it still expects product sales of $27.1 billion to $27.5 billion, but raised its adjusted profit estimate to $3.60 to $3.90 a share from a previous $3.45 to $3.85 a share.

Analysts have projected 2024 earnings per share of $3.75 on revenue of $27.58 billion.

(Reporting By Deena BeasleyEditing by Bill Berkrot)