This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gilead Raises Sales Guidance, Talks Up Strong HIV Drug Launch

FOSTER CITY, Calif. ( TheStreet) -- Gilead Sciences (GILD - Get Report) raised product sales guidance for the rest of the year and said demand was high for a new HIV medicine launched just two months ago. Earnings in the third quarter also topped Wall Street expectations.

Shares of Gilead rose 3%to $66.75 in Tuesday after-hours trading after closing the regular session down 2% to $64.91.

Net product sales guidance for the remainder of 2012 was raised to a range of $9.1 billion to $9.2 billion from the previous forecast of $8.8-$9 billion. The new guidance, however, brackets current Street consensus of $9.1 billion.

Gilead's product sales guidance encompasses all the drugs sold by the company but excludes other revenue. The company does not provide earnings guidance but current consensus is pegged at $3.79 per share.

Sales of Stribild, Gilead's new four medicine-in-one HIV pill, totaled $17.5 million in the third quarter, in-line with consensus. Launched in late August, Gilead executives said the bulk of early Stribild sales went to fill wholesaler inventory but that demand for the drug was being seen in patients new to HIV therapy as well as from some patients seeking to switch off of protease inhibitor-containing HIV regimens.

Wall Street is paying close attention to Stribild because the new medicine could help Gilead maintain its dominant market share in HIV and staunch slowing growth as the company's older drugs lose patent protection and face generic competition.

On the hepatitis C front, Gilead confirmed that sustained virologic response (SVR) or "cure rate" data from a phase II study of its GS-7977/GS-5885 plus ribavirin all-oral regimen in genotype 1 patients will be presented at the upcoming AASLD Liver Meeting in November.

Investors are keen to compare the results from this study to Abbott's (ABT - Get Report) competing Hep C all-oral regimen that has demonstrated cure rates of between 96% and 99%.

On Tuesday's conference call, Gilead, alluding to the Abbott data indirectly, acknowledged that the SVR rates from its all-oral combination "needs to be very high these days." But Gilead also stressed that other parameters besides high cure rates, including convenience and tolerability, will also play a role in which therapies become widely used.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ABT $48.83 0.47%
GILD $111.94 2.00%
TSLA $246.73 -0.29%
YHOO $43.26 0.97%
AAPL $131.99 1.80%

Markets

DOW 18,163.15 +121.61 0.67%
S&P 500 2,122.05 +17.85 0.85%
NASDAQ 5,100.1210 +67.37 1.34%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs