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Gilead Sciences Inc, the American biopharmaceutical company behind the only approved drug for the treatment of COVID-19 known as Remdesivir (or Veklury) has released its third-quarter earnings in which the company posted better than expected earnings. Per the figures posted, GILD reported product sales of $6.5 billion, an 18% increment year-over-year.
Total revenues for the third quarter of 2020 were up 17% and came pegged at $6.6 billion as compared to $5.6 billion, for the same period in 2019. GAAP net income and diluted earnings per share for Q3 2020 were $360 million and $0.29, respectively, as compared to a net loss and diluted loss per share of $1.2 billion and $0.92, respectively, for the same period in 2019. The Non-GAAP net income came in at $2.7 billion.
As the company highlighted, the huge sales figures came as a result of the sales of Remdesivir majorly in the United States of America where about $5.1 billion were recorded. Europe also accounted for about $877 million of the total $6.5 billion sales while the sales figure for Veklury in other international markets came in at $540 million.
As reported by Investors.com, the performance of Gilead Sciences Inc (NASDAQ: GILD) as shown in this earnings release beats the earnings per share of $1.94 per share on a sale of $6.34 according to analysts polled by FactSet. Despite this impressive performance, GILD stock closed at $58.72 per share, a 2.15% drop on Wednesday. The stocks downward trend also failed to correct in the pre-market as more investors offload the stock as the company projected modest full-year guidance for the 2020 financial year.
GILD Earnings Amid Immunomedics Official Acquisition
GILD earnings for the third quarter came after the company officially announced its acquisition of Immunomedics Inc (NASDAQ: IMMU) in a deal worth $21 billion. The acquisition which was first confirmed about a month ago will reinforce Gilead Science’s (GILD) influence in the field of cancer treatments as the company now has access to Immunomedics novel drug Trodelvy. Trodelvy is significant in that it has the US Food and Drug Administration (FDA) approval as a treatment for adult patients with metastatic triple-negative breast cancer who have received at least two prior therapies.
The plunge in GILD’s stock price coincides with the acquisition of Immunomedics but the company hopes to leverage the impressive strides of the drug as a cancer treatment. The company’s Chairman and Chief Executive Officer (CEO) Daniel O’Day confirmed this when he noted that the purchase of Immunomedics has shown the strong business fundamentals of Gilead Sciences which have not only produced results in the past quarter but also gave room for growth. He added:
“Trodelvy, an approved medicine with extensive potential for patients with a range of tumor types, adds to our growing portfolio of transformational medicines. By following the strategy we laid out at the start of this year, we have significantly improved Gilead’s near and long-term growth potential.”