Gilead Sciences posts falling sales and profits, as CEO announces departure

As was widely expected, US biotech Gilead Sciences (Nasdaq: GILD) late yesterday posted another quarter of falling sales and profits, but surprised with the announcement that both its chief executive and chairman were departing from the company, sending the firm’s shares down 1.4% to $77.80 in after-hours trading.

Gilead said that John Milligan will step down as president and CEO after a 28-year career with the company. Dr Milligan will remain in his current position through the end of the year, while the Board of Directors conducts a search to identify a successor. Chairman John Martin will also step down from the board when the new CEO is appointed, the company said.

Total revenues were $5.65 billion in the second quarter of 2018, down 21% compared to $7.1 billion in 2017. Net income was $1.8 billion or $1.39 per diluted share in 2018 compared to $3.1 billion or $2.33 per diluted share in 2017. Non-generally-accepted accounting principles (GAAP) net income was $2.5 billion or $1.91 per diluted share, down 42% compared to $3.4 billion or $2.56 per diluted share in 2017. Non-GAAP diluted earnings per share (EPS) in the second quarter benefited $0.15 from a favorable settlement of a tax examination. Analysts polled by FactSet were expecting earnings of $1.56 a share, and adjusted earnings of $1.51 a share.