Shares of Gilead Sciences (NASDAQ: GILD) gained 1.2% after the biotechnology firm reported first-quarter earnings of $1.76 per share, surpassing the street view of $1.64 per share. Revenues came in at $5.28 billion, up 3.8% year-over-year, narrowly topping analysts’ projection of $5.27 billion.
On a reported basis, net income was $2 billion or $1.54 per share compared to $1.5 billion or $1.17 per share in the previous year quarter.
HIV product sales jumped 12.5% to $3.6 billion, primarily driven by higher sales volume as a result of the continued uptake of Biktarvy. HCV product sales were $790 million vs. $1 billion for the same period in 2018. The decline was primarily due to lower patient starts and competitive dynamics, including a decline in price in US Medicare, in 2019.
Looking ahead into fiscal 2019, the company reiterated its product sales in the range of $21.3 billion to $21.8 billion and adjusted product gross margin in the range of 85% to 87%.
The first quarter earnings come a month after the California-based firm failed to meet the primary endpoint of its most advanced NASH (nonalcoholic steatohepatitis) candidate, selonsertib, in a Phase 3 trial.
Gilead stock has increased by just 2.5% in the year-to-date period, while its peer companies have achieved double-digit growths. The broader industry has, meanwhile, achieved a growth of about 17% during the same period.