Gilead 1st-qtr hit by slumping hepatitis franchise sales

US biotech major Gilead Sciences (Nasdaq: GILD) late yesterday announced first-quarter 2018 financial results, posting total revenues of $5.09 billion, down 22% compared to $6.5 billion in 2017 and missed Wall Street forecasts. Seven analysts surveyed by Zacks expected sales of $5.42 billion. Gilead shares fell 5.61% to $68.49 in after-hours trading.

Net income was $1.5 billion or $1.17 per diluted share, down 43% compared to $2.7 billion or $2.05 per diluted share in 2017. Non-GAAP (generally accepted accounting principles) net income, which excludes amounts related to acquisition-related, stock-based compensation and other expenses, and unrealized gains from marketable equity securities, was $1.96 billion or $1.48 per diluted share, 33.6% lower than the $2.95 billion or $2.23 per diluted share in 2017. Analysts had expected the company to earn $1.67 per share, according tofigures compiled by Thomson Reuters

On a call with analysts reported by Bloomberg, company executives highlighted the growth of its HIV drugs and the promise of research in cell therapies, while downplaying the decline of its hepatitis C franchise, which it attributed to lower prices and shrinking market share.