Gilead Sciences revenue sees a 17% increase for the third quarter

Gilead Sciences revenue sees a 17% increase for the third quarter
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Gilead Sciences revenue saw a 17% increase for the third quarter of the year due to the sales of its COVID-19 treatment remdesivir.

Figures of Gilead Sciences revenue have surpassed expectations. Thanks to the sales of Gilead’s remdesivir which was touted by President Donald Trump.

Gilead’s coronavirus drug, sold under the brand name Veklury, last week became the first and only treatment that the US Food and Drug Administration approved for treating Covid-19 patients.

Remdesivir will be given to Covid-19 patients who are at least 12 years old and will stay in the hospital, according to Gilead Sciences. The coronavirus pandemic has led to more than 41.3 million infections worldwide and more than 1 million deaths, based on the data compiled by Johns Hopkins University.

Shares of Gilead rose by more than 5% in after-hours trading.

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“Since the beginning of the COVID-19 pandemic, Gilead has worked relentlessly to help find solutions to this global health crisis,” Gilead CEO Daniel O’Day said in a statement. “It is incredible to be in the position today, less than one year since the earliest case reports of the disease now known as COVID-19, of having an FDA-approved treatment in the U.S. that is available for all appropriate patients in need.”

The company said that remdesivir is approved or authorized for temporary use as treatment for coronavirus in 50 countries.

The medication will only be administered in a hospital or in a health-care setting that can provide acute care comparable with inpatient hospital care.

Gilead Sciences sales

The coronavirus vaccine posted $873 million in sales during the third quarter, mostly in the US, according to the company.

Gilead Science’s total sales reached $6.5 billion in the third quarter, an increase from $5.5 billion a year ago and over the $6.3 billion analysts predicted. The drugmaker posted adjusted earnings of $2.11 per share, bigger than the $1.90 per share predicted by analysts surveyed by Refinitiv.

The Foster City, California-based biopharmaceutical company also slashed the top end of its full-year outlook, now anticipating revenue between $23 billion and $23.5 billion. It had previously announced it predicted revenue between $23 billion and $25 billion.

Without remdesivir, Gilead’s total sales rose by 2% to $5.6 billion compared with a year earlier. The company pointed out that remdesivir’s revenue is “subject to significant volatility and uncertainly” depending on the demand in global health.

Gilead mentioned that earnings from its HIV drug business rose by 8% to $4.5 billion during the third quarter.

However, sales for its HCV franchise dropped 31% to $464 million as people in the US and Europe sought fewer health screenings due to the coronavirus pandemic.

The company announced in August that it would manufacture more than 2 million treatment courses of remdesivir by the end of 2020 and expected being able to make “several million more” in 2021.

“We’re… now in position to meet global demand because of the work we’ve done since January to ramp up our supply,” O’Day said during an investor call on Wednesday.

Remdesivir is priced at $2,340 for a five-day treatment course for people supported by government health programs and other countries’ health-care systems, and $3,120 for U.S. patients with private health coverage.

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