Gilead Sciences, Inc.(NASDAQ:GILD) stock rose 2.08% in the pre-market session of Feb 5th, 2021 (Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 20. Veklury sales were $1.9 billion and $2.8 billion, for the fourth quarter and full year 2020, respectively, due to higher hospitalization and treatment rates due to the most recent COVID-19 surge. Product sales excluding Veklury sales for the fourth quarter and full year 2020 declined by 7% and 3%, respectively, compared to the same periods in 2019, due to the continued effects of COVID-19 on Gilead’s HIV and hepatitis C virus (HCV) franchises, as well as the expected decline in sales of Truvada (emtricitabine (“FTC”) and tenofovir disoproxil fumarate (“TDF”))-based products due to the loss of exclusivity of Truvada and Atripla (efavirenz 600 mg/emtricitabine 200 mg/tenofovir disoproxil fumarate 300 mg) in the United States in October 2020. Cell therapy revenues were up 34% for the fourth quarter and 33% for the year, mainly due to the continued uptake of Yescarta in Europe and the US launch of Tecartus in July. Non-GAAP R&D expense for the quarter was $1.5 billion, which is up 31% sequentially and up 37% year-over-year, mainly due to the $190 million charge associated with the Galapagos amendment and approximately $70 million in milestones paid to Pioneer as well as pipeline investments in Trodelvy and magrolimab. During the quarter, the company had generated $1.9 billion of cash flow from operations, paid $858 million in dividends, and drew down a $1 billion term loan in connection with the closing of the $21 billion acquisition of Immunomedics. The company has repaid $1 billion of debt on January 1 of this year.
GILD in the fourth quarter of FY 20 has reported the adjusted earnings per share of $2.19, beating the analysts’ estimates for the adjusted earnings per share of $2.15, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 26 percent to $7.42 billion in the fourth quarter of FY 20, beating the analysts’ estimates for revenue by 4.36%. This is mainly driven by the launch of Veklury in 2020.
The company expects product sales excluding Veklury for 2021 to be in the range of $21.7 billion to $22.1 billion. Due to the uncertainty related to pandemic, the company expects Veklury revenue to be in the range of $2 billion to $3 billion, which results in total product sales range of $23.7 billion to $25.1 billion.