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HIV Drug's Result Is a Balm to Gilead

HIV Drug's Result Is a Balm to Gilead

Viread did better than expected and accounted for more than half of Gilead's sales.

Viread did better than expected and accounted for more than half of Gilead's sales.

Gilead Sciences

(GILD) - Get Free Report

continued its streak of profitable quarters, helped along by strong sales of its anti-HIV drug Viread.

The Foster City, Calif.-based biotech firm, which recently acquired Triangle Pharmaceuticals, said fourth-quarter earnings totaled $35.5 million, or 17 cents a share, compared with a profit of $131.6 million, or 62 cents a share, in the year-ago quarter. Last year's fourth-quarter profit was bolstered by a one-time gain of $158 million related to the sale of its oncology business.

Fourth-quarter earnings beat the consensus Wall Street estimate by 2 cents a share, according to Thomson Financial/First Call.

Before its earnings report, Gilead shares closed Thursday up 37 cents, or 1%, at $36.64.

Viread sales in the quarter totaled $85 million, up 23% sequentially and above Wall Street estimates of about $80 million.

Total revenue in the quarter rose 95% to $145 million, including net product sales of $139.2 million. Fourth-quarter sales of the antifungal Ambisome rose 16% from the year-ago quarter, to $49.6 million, although favorable foreign currency exchange accounted for just over half the percentage gain. Gilead did not break out sales of its new hepatitis B drug, Hepsera, which it launched at the end of September.

For the year, Gilead earned $72.1 million, or 35 cents per share. That compares with net income of $52.3 million, or 26 cents per share, in 2001, although again, 2001 was profitable only because of the one-time gain from the sale of Gilead's oncology business.

Gilead didn't offer any specific earnings guidance, and is not expected to do so until its first-quarter conference call, due to the just-closed Triangle deal. Analysts are currently expecting Gilead to earn 69 cents a share in 2003.

Gilead completed the acquisition of Triangle for $464 million in cash on Jan. 23, combining the two firms that focus on drugs to treat HIV and other infectious diseases.