By Anna Prior
Gilead Sciences Inc. said sales of its new treatment for
hepatitis C soared in the first quarter, helping the
biopharmaceutical company's bottom-line to triple.
The treatment, called Sovaldi, is closely watched by analysts
who have estimated annual sales could surpass $17 billion in
several years, making it one of the biggest selling drugs in the
world. The treatment costs $1,000 a day and has been used as an
example of how hard it is for insurers to curb the use of pricey
lifesaving medicines.
Gilead said Tuesday that Sovaldi had $2.27 billion in
first-quarter sales. The treatment, which received approval by the
U.S. Food and Drug Administration approval in early December,
recorded sales of $139.4 million in the final weeks of 2013.
Sovaldi has won praise for its cure rate and being the first
pill approved to treat some types of hepatitis C without
interferon, an injected drug that can cause flulike symptoms.
Sovaldi promises to cure 90% of its targeted patients, who would
likely develop liver cancer or require liver transplants if
untreated.
Overall, Gilead posted a first-quarter profit of $2.23 billion,
or $1.33 a share, up from $722.2 million, or 43 cents a share, a
year earlier. Excluding stock-based compensation and other items,
adjusted per-share profit grew to $1.48 from 48 cents.
Revenue nearly doubled to $5 billion from $2.53 billion.
Analysts polled by Thomson Reuters had expected a profit of 89
cents a share on $3.92 billion in revenue.
Gilead shares, which were halted before releasing its
first-quarter results, rose about 2% in after-hours trading.
Higher sales of Gilead's newer HIV drugs also boosted results.
Stribild--introduced in the U.S. in August 2012--posted sales of
$215.3 million, up from $92.1 million a year earlier. Sales of
Complera, which received U.S. approval in August 2011, rose to
$250.7 million from $148.2 million a year ago.
Gilead reiterated its full-year outlook, which excludes the
impact of Sovaldi sales, of adjusted per-share earnings between 63
cents and 66 cents and net product sales of $11.3 billion to $11.5
billion.
Write to Anna Prior at anna.prior@wsj.com
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