Gilead Sciences, Inc. (NASDAQ:GILD) stock fell 3.63% (As on February 7, 11:40:17 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings that missed analyst estimates as sales of its HIV treatment rose less than expected. Sales of Gilead’s HIV treatment Biktarvy, which drives a significant portion of product sales, rose 6.5% to $3.11B, slightly missing estimates of $3.21. Total product sales, excluding Veklury, of $6.3 billion were flat compared to the same period in 2022, with higher Oncology sales partially offset by lower HIV sales. Descovy® (FTC 200mg/TAF 25mg) sales decreased 5% to $509 million in the fourth quarter 2023 compared to the same period in 2022, primarily driven by unfavorable pricing dynamics in the United States, partially offset by higher demand and channel inventory dynamics.

The Liver Disease portfolio sales were $691 million in the fourth quarter 2023 and remained flat compared to the same period in 2022. Sales were impacted by unfavorable pricing dynamics, offset by higher demand across chronic hepatitis C virus (“HCV”) and chronic hepatitis delta virus (“HDV”) products. Cell Therapy product sales increased 11% to $466 million in the fourth quarter 2023 compared to the same period in 2022.

GILD in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.72, missing the analysts’ estimates for the adjusted earnings per share of $1.76. The company had reported 4 percent decline in the adjusted revenue growth to $7.1 billion in the fourth quarter of FY 23, which matches the analysts’ estimates for revenue of $7.1 billion. This is primarily due to lower Veklury (remdesivir) and HIV sales, partially offset by higher Oncology sales. Non-GAAP product gross margin was 86.1% in the fourth quarter 2023 compared to 86.8% in the same period in 2022, primarily driven by product mix. Product gross margin was 70.4% in the fourth quarter 2023 compared to 81.0% in the same period in 2022, primarily driven by restructuring expenses related to changes in our manufacturing strategy, intangible asset amortization expenses related to Trodelvy following approval for pretreated HR+/HER2- metastatic breast cancer in February 2023, and product mix.

Looking ahead to 2024, the company expects adjusted diluted earnings to be of between $6.85 and $7.25 per share on revenue of $27.1B and $27.5B, compared with forecasts of $7.19 a share on revenue of $27.63B. For fiscal 2024, Total product sales between $27.1 billion and $27.5 billion and Total Veklury sales of approximately $1.3 billion.