Gilead Sciences 3rd-qtr beats expectations, despite sales and earnings declines

Gilead Sciences (Nasdaq: GILD) announced its financial results for the third quarter of 2022 after markets closed yesterday, but the US biotech major’s shares were up 4.8% at $73.58 pre-market today.

Total revenue for the quarter fell 5% to $7.0 billion compared to the same period in 2021, primarily due to lower Veklury (remdesivir) sales, partially offset by increased sales in HIV and oncology products. The figure well beat consensus estimates of $6.1 billion

Diluted earnings per share (EPS) decreased to $1.42 compared to $2.05 for the same period in 2021, mainly driven by higher acquired in-process research and development (IPR&D) expenses of $389 million primarily due to the acquisition of MiroBio and lower product gross margin and revenues, partially offset by lower income tax expense. Non-GAAP diluted EPS decreased to $1.90 compared to $2.65 a year earlier but 31% better than consensus forecast of $1.45. The fall was primarily driven by the MiroBio acquisition, as well as lower product gross margin and revenues.