Updated from 4:59 p.m. EDT
joined the ranks of profitable biotech firms Wednesday, reporting its first-ever quarterly earnings, bolstered by higher sales of its new anti-HIV drug Viread.
The Foster City, Calif.-based biotech firm said second-quarter earnings totaled $19.7 million, or 10 cents a share, compared with a loss of $32.4 million, or 34 cents a share, in the year-ago quarter. Earnings beat the consensus Wall Street estimate by 6 cents, according to Thomson Financial/First Call.
Before its earnings report, Gilead shares closed Wednesday up $1.35, or 4.6%, to $30.40. The stock jumped another $1.59, or 5%, to $31.99 in after-hours trading.
Viread sales in the quarter totaled $44.7 million, within the published Wall Street estimates but less than the more bullish whisper expectations of at least $50 million. This compares with first-quarter Viread sales of $27.2 million. The drug was launched in the U.S. last October, and European sales began in the second quarter.
Total revenue in the quarter rose 118% to $109.4 million, including net product sales of $93.8 million. Second-quarter sales of the antifungal Ambisome rose 23% to $47.7 million, compared with the year-ago quarter.
Gilead didn't offer any specific earnings guidance, but on its conference call, the company lowered 2002 estimates for costs related to research and development and sales and marketing, which should prompt analysts to raise their estimates. Analysts have been expecting the company to earn 7 cents per share in 2002, compared with a 2001 loss of 54 cents per share.
On the drug pipeline front, Gilead will bring its hepatitis B drug candidate, Adefovir, in front of a Food and Drug Administration advisory panel on Aug. 6. The drug already has been granted priority review, so an FDA decision could come by year's end.