Gilead Q3 Product Sales Up 60% Due to HIV Drugs; Company Stops Development of Two Experimental HIV Drugs
October 22, 2004
The Foster City, Calif.-based drug maker Gilead Sciences on Thursday said its product sales increased 60% to $310.7 million in the third quarter of 2004, primarily because of higher prescription sales of its antiretroviral drugs Viread, Emtriva and Truvada, Reuters reports. The company also said it has stopped development of two experimental HIV treatments, known as GS 7340 and GS 9005. HIV drug sales for the company rose 88% to $228.1 million, contributing to a 55% increase in overall profit over the third quarter of 2003. However, some analysts questioned Gilead's growth prospects because it dropped development of GS 7340 and GS 9005, and the company's shares fell more than 7% in after-hours trading on INET. "There will be increasing pressure to bring in drugs through licensing or an acquisition," Ian Somaiya, an analyst at Thomas Weisel Partners, said, adding, "Bringing in a late-stage drug could be costly. ... [T]here is always the question of how dilutive an acquisition would be." Gilead raised its outlook for HIV sales to between $870 million and $890 million for the full year (Beasley, Reuters, 10/21). FDA approved Truvada, which combines Viread and Emtriva, in August (Kaiser Daily HIV/AIDS Report, 8/3).
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This article was provided by Henry J. Kaiser Family Foundation. It is a part of the publication Kaiser Daily HIV/AIDS Report. Visit the Kaiser Family Foundation's website to find out more about their activities, publications and services.