Gilead's 3Q profit slips on acquisition costs
FOSTER CITY, Calif. (AP) — HIV drug maker Gilead Sciences Inc. said Tuesday that its third-quarter profit slipped on costs related to its purchase of hepatitis C drug developer Pharmasset Inc. But results still topped expectations and the company raised its sales forecast for the full year.
The company said revenue increased more than 14 percent to $2.43 billion, led by sales of drugs like Atripla, Truvada and Viread. In July Gilead received approval to market its daily pill Truvada to reduce the risk of acquiring HIV in adults with a high risk of acquiring the virus through sexual contact. The drug is the first approved by the FDA to reduce infection with HIV.
In August the FDA approved the company's pill Stribild, which combines four anti-HIV drugs in one tablet.
The company's net income fell to $675 million, or 85 cents per share, from $741 million, or 95 cents per share, in the third quarter of 2011. Earnings were weighed down by $89.3 million in interest expenses, mainly due to debt connected with the company's acquisition of Pharmasset Inc. Excluding acquisition-related charges and other items, income in the latest quarter would have totaled $1, compared with $1.02 per share in the prior-year period.
Analysts polled by FactSet had expected earnings per share of 94 cents per share on revenue of $2.34 billion.
On a conference call with analysts Tuesday afternoon, Gilead raised its forecast for full-year product sales to between $9.1 billion and $9.2 billion, representing a $200 million jump from the top end of its prior forecast.
Shares rose $2.08, or more than 3 percent, to $66.99 in after-hours trading on the news. Shares of the Foster City, Calif.-based company had closed the regular session down 2 percent at $64.91 before the report.