Gilead stock sprinted to a profit-taking zone Thursday after Gilead Sciences rode its Covid treatment to another beat and raise.
"Though driven mostly by fluctuating HIV pricing and Veklury, a beat is still a beat, and with continued good operating expenses control, Gilead's strong operational execution continues," RBC Capital Markets analyst Brian Abrahams said in a report.
Veklury, Gilead's treatment for hospitalized Covid patients, brought in $692 million in third-quarter sales. That was more than double the $272 million forecast of analysts polled by FactSet. Veklury sales climbed 9% year over year.
Analysts are closely watching Gilead's pipeline. Last year, the company acquired CymaBay Therapeutics for its liver disease drug seladelpar. Now, that drug is approved under the brand name Liveldzi. Gilead is also working on a multiple myeloma treatment called anito-cel. Further, it's pushing deeper into HIV prevention drugs.
These efforts could "meaningfully grow the business medium-term off a high base — given oncology and hepatitis C pressures and likely fewer HIV pricing tailwinds going forward — and for HIV durability beyond Biktarvy's loss of exclusivity," Abrahams said in a report. Biktarvy is Gilead's biggest drug.
Gilead stock popped 6.8% to close at 97.90. That put shares in a profit-taking zone after breaking out of a cup-with-handle base and 78.45 buy point on Aug. 28, MarketSurge chart analysis shows. The profit-taking zone runs up to 98.06. Savvy investors are encouraged to take some profits when a stock rises 20% to 25% above its entry.
Gilead Stock: Veklury Drives Beat
Across all products, Gilead's sales increased 7% to $7.55 billion, beating analysts' call for $7.01 billion. The company earned an adjusted $2.02 per share, topping the $1.51 forecast. Excluding the impact of Veklury, Gilead's Covid treatment, total sales jumped 7%.
The company called out strong growth from its blockbuster HIV treatment, Biktarvy. Biktarvy sales climbed 13% to $3.47 billion. That beat expectations for $3.33 billion. But sales in Gilead's oncology division missed expectations at $816 million, up 6%. Analysts called for $860 million in sales.
Beyond Biktarvy, fellow HIV treatment Descovy beat expectations with $586 million in sales, and advanced 15% year over year.
But revenue from cancer treatments lagged across the board.
Sales of cell therapies Tecartus and Yescarta came in below expectations. Tecartus sales edged 2% higher to $96 million, while revenue from Yescarta fell 1% to $387 million. Analysts projected a stronger $113 million and $428 million, respectively.
Trodelvy sales jumped more than 17% to $332 million, but lagged views for $340 million. Trodelvy treats breast and bladder cancers.
Gilead Beefs Up Its Outlook
But Gilead raised its outlook for the year. The company guided to $27.8 billion to $28.1 billion in sales, up from its previous call for $27.1 billion to $27.5 billion.
Gilead also expects to earn $4.25 to $4.45 per share, minus some items. Three months ago, the company guided to profit of $3.60 to $3.90 per share.
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