Gilead Sciences Inc. (NYSE: GILD) beat market estimates for revenue and earnings in the second quarter of 2019. Shares were down 0.21% in aftermarket hours on Tuesday.
Total revenues inched up by 1.7% to $5.7 billion from the year-ago quarter, beating estimates of $5.5 billion.
GAAP net income was $1.9 billion, or $1.47 per share, compared to $1.8 billion, or $1.39 per share, in the prior-year quarter. Adjusted net income totaled $2.3 billion, or $1.82 per share, topping forecasts of $1.72 per share.
Total product sales were $5.6 billion in the second quarter compared to $5.5 billion last year. HIV product sales increased 8% year-over-year to $4 billion, helped by higher sales volume and the continued uptake of Biktarvy.
HCV product sales dropped to $842 million from $1 billion last year, due to competitive dynamics such as US Medicare price declines and lower patient starts. Other product sales fell 25% to $604 million, mainly due to declines in Ranexa and Letairis sales.
R&D expenses decreased slightly to $1.16 billion from $1.19 billion last year, mainly due to the 2018 impacts from the company’s purchase of a US FDA Priority Review Voucher and stock-based compensation expense.
Based on favorable demand trends seen in the first half of 2019, Gilead raised its full year 2019 guidance. The company now expects net product sales of $21.6 billion to $22.1 billion versus the previous range of $21.3 billion to $21.8 billion.
Gilead declared a dividend of $0.63 per share of common stock for the third quarter of 2019, payable on September 27, 2019, to stockholders of record on September 13, 2019.
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