Industry Trend Analysis - Gilead's Short-Term Outlook Is Very Bleak - JUNE 2017

BMI View: Gilead Sciences Q117 financial results have continued as the year 2016 finished; rapidly declining revenues due to challenges to its HCV portfolio. While the growth of HIV medicine sales in both the U S and Europe are positive signs, and the expansion of Sovaldi and Harvoni ' s labels in the US may bolster sales somewhat, Gilead is likely to experience a continuation of this performance over the short term at least.

Gilead Sciences continued its weak financial performance into Q117, driven by the decline of the key hepatitis C virus (HCV) portfolio. Total revenues fell for the fourth consecutive quarter, by -16.5% y-o-y to USD6.51bn; significantly shy of estimates of USD6.63bn. Earnings per share (EPS) missed estimates by USD0.05 (USD2.23) while net income fell by more than 20% y-o-y for the fourth quarter running. Gilead's full-year 2017 sales guidance has been maintained at USD22.5-24.5, reflecting a 22.7% reduction from FY2016.

HCV Portfolio Decline Continues

Continued Decline In Revenues
Gilead - Financial Snapshot (USDmn)
Source: Gilead Sciences, BMI

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