Galapagos deal drives Gilead's 3rd-qtr into the red

US biotech Gilead Sciences (Nasdaq: GILD) saw its shares fall 2.5% in after-hours trading, when it posted financial results, showing flat sales and a loss for the third quarter of 2019.

Total revenues rose a marginal 0.1% to $5.604 billion from $5.596 billion in the year-ago period, with US product sales at $4.2 billion, versus $4.1 billion in the year-ago period and European product sales down 8% a $804 million.

Net loss for the third quarter of 2019 was $1.2 billion, or $0.92 per diluted share, compared to net income of $2.1 billion or $1.60 per diluted share for the same period in 2018. The net loss for the third quarter of 2019 includes up-front collaboration and licensing expenses of $3.92 billion, or $2.40 per share, related to Gilead’s global R&D collaboration agreement with Galapagos (Euronext: GLPG). Non-Generally Accepted Accounting Principles (GAAP) net income was $2.2 billion or $1.75 per diluted share for third-quarter 2019, down 4.9%.