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(Reuters) – Gilead Sciences Inc (NASDAQ:GILD) on Thursday said third-quarter profit fell due to lower sales of its COVID-19 antiviral drug and acquisition expenses, but demand for HIV and cancer drugs remained strong and the company increased its outlook for full-year revenue and earnings.
Quarterly revenue fell 5% to $7 billion, but was still ahead of the average Wall Street estimate of $6.12 billion, according to Refinitiv data.
Sales of COVID treatment remdesivir, sold under the brand name Veklury, fell 52% from a year earlier to $925 million. But that was still well ahead of analysts’ estimates of $328 million.
The U.S. biotech company said adjusted quarterly profit fell 28% to $1.90 per share, which also beat Wall Street expectations of $1.43 per share. Net income fell to $1.42 per share from $2.05 per share.
“What you’ve seen is an over performance … both on Veklury, but also, I think, very importantly on our base business,” Gilead Chief Executive Daniel O’Day told Reuters.
The CEO said Gilead expects demand for Veklury to continue to slow, but “like the rest of the world, we’ve had to struggle to look into the crystal ball and know exactly where the pandemic can go.”
Gilead’s HIV product sales increased 7% to $4.5 billion in the quarter, driven by higher prices and demand.
Sales of cancer drug Trodelvy rose 78% to $180 million, while sales of Gilead’s cancer cell therapies increased 79% to $398 million.
For the full year, Gilead said it now expects product sales of $25.9 billion to $26.2 billion, up from a previous forecast of $24.5 billion to $25 billion.
The company also raised its outlook for 2022 adjusted earnings to between $3.35 and $3.55 per share from a previous range of $2.90 to $3.30.
