Gilead Sciences Inc.’s full-year forecast was boosted by what the company sees as a still-growing market for remdesivir, the antiviral treatment for COVID-19 that it expects to generate as much as US$3 billion.

• The drugmaker expects 2021 earnings per share of US$6.75 to US$7.45, compared with the average analyst estimate of US$6.77. Sales may top US$23.70 billion to US$25.10 billion, the company said, compared with analysts’ US$24.25 billion estimate.

Key Insights

• Gilead reported US$1.94 million in fourth-quarter sales of its coronavirus therapy Veklury, known by its generic name remdesivir, well outpacing Wall Street’s average estimate of US$1.45 billion.
• Across the company’s entire portfolio of products, revenue jumped 26 per cent year-over-year to US$7.42 billion in the quarter.
• Remdesivir became the first COVID-19 medicine to get full U.S. approval late last year, based on a study showing hospitalized patients who got it recovered about five days faster. In January, Gilead raised its full-year 2020 profit guidance, citing stronger-than-expected sales of the antiviral treatment amid a new surge of cases worldwide.
• In the U.S., Gilead charges US$3,120 for the typical course of treatment. But investors are skeptical that it will remain a source of sustained revenue.
• The Foster City, California-based biotech reported that HIV drug Biktarvy grew 32 per cent compared with a year earlier to US$2.07 billion in sales in the fourth quarter. That gain beat estimates.

Market Reaction

Gilead shares rose as much as 2.5 per cent in trading after the market closed. The stock has risen more than 12 per cent this year through Wednesday’s close.

Know More

• Gilead was an active deal-maker in 2020, making a US$21 billion dollar play for Immunomedics Inc., the maker of a promising breast-cancer therapy, and reaching bolt-on deals for Forty Seven Inc. and Germany’s MYR GmbH. Still, investors are eager for more M&A.