Gilead's quarterly loss is narrower than expected

By Ciara Linnane

Drug company's stock dips in after-hour trading

Gilead Sciences Inc.'s stock dipped 0.2% in after-hours trading Thursday, after the drug company's adjusted first-quarter profit was narrower than expected.

Gilead (GILD) posted a net loss of 4.17 billion, or $3.34 a share, for the quarter, after reporting income of $1.01 billion, or 80 cents a share, in the year-earlier period.

Excluding one-time items, the company's per-share loss came to $1.32, narrower than the $1.49 loss expected by FactSet analysts. The loss was mostly due to the $4.1 billion of acquired IPR&D expenses associated with the $3.9 billion acquisition of CymbaBay, which closed on March 22.

Revenue rose to $6.686 billion from $6.352 billion a year ago, ahead of the $6.357 billion FactSet consensus.

Chief Executive Daniel O'Day said revenue was driven by HIV, oncology and liver-disease products.

"The acquisition of CymaBay brings us another potentially transformative therapy for people with liver disease, and a regulatory decision on seladelpar is expected in August" he said in prepared remarks.

"New HIV data demonstrates the continued progress in our long-acting HIV pipeline, and we look forward to providing updates on this and our broad Oncology portfolio throughout the rest of 2024," O'Day said.

The company is still expecting full-year revenue of $27.1 billion to $27.5 billion.

It lowered its full-year adjusted per-share earnings guidance to $3.45 to $3.85, from earlier guidance of $6.85 to $7.25.

The stock has fallen 19% in the year to date, while the S&P 500 SPX has gained 6%.

-Ciara Linnane

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04-25-24 2021ET

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