Another disappointing quarter from Gilead, shares down almost 6%

Gilead has posted another disappointing quarter and its shares have reacted by dropping 5.8% in after-hours trading.  The cause for the decline has been the same for two years now–sales of hepatitis C drugs keep dropping, since the disease is less and less widespread and competitors–especially AbbVie–are growing stronger and stronger. In the first 3 months of the year, Gilead’s hepatitis C products yielded sales of $1.05bn, that is a plunge over 50% vs Q1 2017.  Interestingly, the direct competitor AbbVie reported record $919m sales, almost double the figure expected by analysts ($573m). HIV drugs, instead, kept growing and reached $3.39bn in Q1 2018 vs $3.26bn in Q1 2017. Total revenues were $5.1bn (vs $6.5bn) and net income was $1.5bn (vs $2.7bn). The Californian group anyway maintains a highly strong financial position, with its liquidity exceeding $32bn.

(Source: Gilead)