Gilead Sciences Posts Higher 1Q Sales, Swings to Loss on Charges

By Paul Ziobro

Gilead Sciences posted higher first-quarter sales, but swung to a steep loss due to charges related to recent acquisitions, prompting the company to cut its per-share profit outlook.

The Foster City, Calif.-based biopharmaceutical company reported a loss of $4.17 billion, or $3.34 a share, compared with a profit of $1.01 billion, or 81 cents a share, in the same quarter a year ago.

The latest quarter's results were impacted by a $3.9 billion in-process research and development charge related to its recent $4.3 billion acquisition of CymaBay Therapeutics, as well as a pretax impairment of $2.4 billion related to assets acquired from Immunomedics in 2020.

Adjusted for certain items, Gilead said its per-share loss came to $1.32 a share. Analysts were looking a loss of $1.49 a share, according to FactSet.

Total revenue rose about 5% to $6.67 billion, ahead of analyst expectations for $6.36 billion, primarily due to higher sales of HIV, oncology and liver disease products.

For the full-year, Gilead now expects per-share earnings of between 10 cents and 50 cents, down from its prior view of $5.15 to $5.55. On an adjusted basis, the company expects per-share earnings of $3.45 to $3.85, down from a prior range of $6.85 to $7.25.

It backed its top-line outlook.

Write to Paul Ziobro at paul.ziobro@wsj.com

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Gileadisprovidingfull-year2024guidancebelow:

• Totalproductsalesbetween$27.1billionand$27.5billion.

• Totalproductsales,excludingVeklury,between$25.8billionand$26.2billion.

• TotalVeklurysalesofapproximately$1.3billion.

• DilutedEPSbetween$5.15and$5.55.

• Non-GAAPdilutedEPSbetween$6.85and$7.25.

(END) Dow Jones Newswires

April 25, 2024 16:39 ET (20:39 GMT)

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