FOSTER CITY, Calif. (TheStreet) -- Gilead Sciences (GILD) excluded sales of its hepatitis C pill Sovaldi from its 2014 product sales guidance, thereby squashing a good bit of the fun from Tuesday's highly anticipated fourth-quarter and 2013 earnings call. Despite the conservative outlook, there was still a lot to like from Gilead's call.
Sovaldi sales in the fourth quarter totaled $139.4 million, well above consensus (which was ridiculously low) and basically in line with the buyside "whisper" number. Gilead only started selling Sovaldi in early December, so yeah, the drug is flying off the shelf. Sales attributed to patient demand in the quarter totaled about $50 million (in line with IMS prescription data), another $70 million was inventory stocking while Gilead filled a $15 million order for an undisclosed clinical trial (probably Bristol-Myers Squibb (BMY) combining Solvaldi with daclatasvir.)
Gilead said about 70% of Sovaldi sales in the fourth quarter were used to treat genotype 1 patients, which was a bit of a surprise given the company's comment at the J.P. Morgan conference that more genotype 2 patients were using the drug initially.
A small market research survey of Sovaldi was conducted by Gilead in January, indicating use in 70% genotype 1, 17% genotype 2 and 12% genotype 3.
Sovaldi pricing in Europe looks good: Germany $66,000 at the high end and $57,000 in the United Kingdom, which will be closer to the pricing in the rest of Europe.
The Sovaldi/ledipasvir pill hasn't been filed with FDA or Europe yet but will before the end of the current quarter, if not sooner.