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Gilead Sciences Stock Falls as Slumping COVID-19, Cancer Drug Sales Hit Revenue

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Nikos Pekiaridis / NurPhoto via Getty Images

Nikos Pekiaridis / NurPhoto via Getty Images


Key Takeaways

  • Gilead Sciences missed first-quarter revenue estimates as sales of its COVID-19 and cancer drugs declined.

  • The biopharma's profit got a lift from higher prices and demand for its HIV treatments.

  • Gilead Sciences reduced its full-year profit outlook.



Gilead Sciences (GILD) shares fell Friday, a day after the biopharmaceutical firm reported weak sales of its COVID-19 and cancer treatments, and cut its full-year profit guidance.

The company's first-quarter revenue slipped 0.3% year-over-year to $6.67 billion, while analysts surveyed by Visible Alpha were looking for $6.81 billion. Earnings per share (EPS) of $1.81 was better than expected.

Sales of its Veklury COVID-19 drug sank 45% to $302 million on "lower rates of COVID-19 related hospitalizations across regions." Sales of its breast cancer medicine, Trodelvy, declined 5% to $293 million on what the company called "inventory dynamics" and lower average price realization.

On the plus side, HIV product sales increased 6% to $4.6 billion, boosted by higher prices and demand. Its liver disease portfolio posted a 3% sales gain to $758 million.

The company reduced its 2025 EPS outlook to a range of $5.65 to $6.05, versus the previous $5.95 to $6.35.

Even with today's 4% slide, shares of Gilead Sciences remain up about 11% so far this year.

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