Gilead Sciences, Inc.(NASDAQ: GILD) stock lost over 10% this morning impacted by the weaker than expected results. For the fourth quarter of 2016 ended 31st December, the group has reported the adjusted earnings per share of $2.64, beating the analysts’ estimates for the adjusted earnings per share of $2.31. The profits fall in the fourth quarter due to the increase in the research and development costs, which is up almost 60% year over year, to $1.2 billion. The company had reported the adjusted revenue of $7.3 billion in the fourth quarter 2016, beating the analysts’ estimates for revenue of $7.173 billion. The antiviral product sales that include the sales of its HIV and other antiviral products and chronic hepatitis C (HCV) products were $6.6 billion, compared to $7.9 billion in the prior year period.
Gilead Sciences has announced the submission of a New Drug Application (NDA) to the FDA for an investigational, once-daily single-tablet regimen containing sofosbuvir 400 mg, velpatasvir 100 mg, and voxilaprevir 100 mg for the treatment of direct-acting antiviral (DAA)-experienced HCV-infected patients. Moreover, GILD has 28 clinical studies in progress. Ten of those are late-stage trials, which are larger in scope, and therefore tend to be more expensive than earlier-stage clinical studies.
For 2016, Gilead Sciences has reported the revenue of $30.4 billion, which is a fall of 6.9% from the prior year. The 2016 full-year earnings came in at $13.5 billion, a decrease of 25.4% year-over-year. GILD has posted the adjusted earnings per share for 2016 of $11.57, which is a fall of 8.2% from 2015.
Gilead Sciences has generated $16.7 billion in operating cash flow in 2016. The company has used $11 billion of that cash flow to buy back stock and used $2.5 billion to pay dividends.
For 2017, Gilead Sciences expects the net product sales to be in the range of $22.5 billion to $24.5 billion, which is less than the analysts’ forecasted sales of the range of $26 billion to $27 billion. The HCV product sales is expected to be in the range of $7.5 billion to $9 billion and the product gross margin is expected in the range of 86% to 88%
GILD stock has already fallen 14.11% in the last one year (as of February 7th, 2017; Source: Google Finance).