Gilead Sciences Inc. (GILD) Thursday reported a surge in first-quarter profit, on sales of newer HIV treatment drugs such as Complera/Eviplera and Stribild, while the prior-year period was hurt by stock-based compensation expenses.
However, earnings and sales missed Wall Street estimates, as demand sagged for traditional key drugs Atripla and Truvada.
The world's largest maker of HIV drugs reported quarterly net income of $722 million or $0.43 per share, compared to $442 million or $0.28 per share last year.
Results for the recent quarter included stock-based compensation expense of $45 million, compared to $229.6 million in the prior year.
Excluding items, adjusted earnings for the quarter were $802 million or $0.48 per share, compared to $704 million or $0.45 per share a year ago.
On average, 24 analysts polled by Thomson Reuters estimated earnings of $0.50 per share for the quarter. Analysts' estimates typically exclude special items.
The Foster City, California-based company posted quarterly revenues of $2.53 billion, up 11 percent from $2.28 billion a year ago. Twenty-three analysts had a consensus revenue estimate of $2.58 billion for the quarter.
Sales of key HIV drugs Atripla fell 1 percent to $877 million and Truvada sank 8 percent to $700 million, year-over-year, on lower U.S and International demand, while Europe fared well.
HIV drug Stribild chipped in with sales of $92 million for the quarter. Stribild (elvitegravir 150 mg/cobicistat 150 mg/emtricitabine 200 mg/tenofovir disoproxil fumarate 300 mg) was approved by the FDA last August.
Sales of Complera/Eviplera nearly tripled to $148 million, and HIV and chronic hepatitis B drug Viread rose 10 percent to $210 million.
Cardovascular products, including Letairis and Ranexa, contributed sales of $214 million, up 26 percent from a year ago.
Gilead spent $497.6 million for research and development in the quarter, compared to $458 million in the prior year.
For fiscal year 2013, the company continues to expect net product sales of $10 billion to $10.2 billion.
Gilead has been striving to get newer drugs into the market even as the sector has been impacted by patent expirations.
Last month, the U.S. Food and Drug Administration rejected Gilead's New Drug Applications for HIV drugs, elvitegravir and cobicistat, citing deficiencies in documentation and validation of certain quality testing procedures. The drugs are components of Gilead's HIV drug Stribild, whose marketing authorization is not affected by the decision.
In February, Gilead closed its about $510 million acquisition of Canada-based YM BioSciences Inc., in a move to gain access to YM's research for a chronic bone-marrow disorder known as myelofibrosis.
Gilead closed Thursday at $52.18, up $2.04 or 4.07%, on a volume of 16.6 million shares on the Nasdaq. In the past year, the stock has traded in a range of $24.12 - $55.16.
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