New Product Sales Drive Gilead Sciences Sales Higher By 21%
The good times continued for biopharma giant Gilead Sciences after the closing bell on Tuesday, as the company reported double-digit sales and EPS growth for the fourth quarter.
For the quarter, Gilead delivered a total revenue increase of 21% to $3.04 billion as adjusted profits improved 10% to $0.55 from $0.50 in the year-ago period.
The majority of Gilead's growth came from its antiviral product line which saw sales rise 22% to $2.64 billion, yet growth was dominated by its newer drugs. Sovaldi, the company's oral hepatitis-C pill approved in December, had revenue of $139.4 million during the quarter, driven by clinical trial sales, as well as patient demand and inventory stocking. Similarly, Stribild, the company's four-in-one HIV medication, saw sales more than quintuple to $203.8 million from $40 million in the year-ago period. Finally, HIV drug Complera/Eviplera saw sales increase 122% to $261.8 million.
Gilead's leading drugs, based on sales, were Atripla and Truvada, which brought in $933.6 million and $814.1 million, respectively. Revenue for these two drugs gained 2% and fell 2%, respectively, but their weakness shouldn't come as a surprise to shareholders since Stribild is built to become the next-generation HIV therapy.
Gilead's cardiovascular segment, while small, also delivered strong sales gains of 25% to $268.5 million with Letairis sales up 19% and Ranexa revenue up 31%.
Looking ahead, Gilead anticipates full-year 2014 revenue of $11.3 billion to $11.5 billion, with gross product margin of 75%-77% and EPS ranging from $0.63-$0.66. One factor to consider, though, is that these figures exclude the impact of Sovaldi on revenue and EPS projections.
The article New Product Sales Drive Gilead Sciences Sales Higher By 21% originally appeared on Fool.com.Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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