Gilead Projects 2009 Net Product Revenue $6.1 Billion-$6.2 Billion
July 21 2009 - 5:16PM
Dow Jones News
Gilead Sciences Inc. (GILD) raised its projection for 2009 net
product revenue to $6.1 billion to $6.2 billion in its first update
since April's $1.4 billion acquisition of CV Therapeutics.
The updated expectations, up from a previous range of $5.9
billion to $6 billion, disappointed investors as shares dropped
4.6% to $46.30 in after-hours trading.
Wall Street currently projects total revenue for the quarter of
$6.51 billion, which includes revenue from royalties, contracts and
other sources, according to Thomson Reuters.
The Foster City, Calif., company, primarily known for its
presence in selling HIV treatments, warned that its biggest
products, Atripla and Truvada, could face pressure in the second
half of the year as wholesalers decrease inventories.
Those levels rose during the quarter, despite consistent retail
demand, as wholesalers bought more product ahead of a July 1 price
increase on the drugs.
For the three months ended June 30, Gilead reported net income
of $571.4 million, or 61 cents a share, up from $434.8 million, or
45 cents a share, a year earlier.
Excluding items, earnings rose to 69 cents a share, beating a
Wall Street projection of 61 cents a share.
Revenue rose 29% to $1.65 billion, beating expectations of $1.6
billion.
-By Thomas Gryta, Dow Jones Newswires; 212-416-2169;
thomas.gryta@dowjones.com