Gilead Sciences Inc.'s earnings for the third quarter of 2019 fell versus the same period last year despite a year-over-year bump in product sales.
Non-GAAP net income for the quarter decreased to $2.22 billion, or $1.75 per share, from $2.40 billion, or $1.84 per share, in the year-ago period. The S&P Global Market Intelligence consensus normalized EPS estimate for the quarter was $1.73.
On a GAAP basis, net loss attributable to Gilead was $1.17 billion, or 92 cents per share, compared to net income of $2.10 billion, or $1.60 per share, a year ago.
The net loss includes $3.92 billion, or $2.40 per share, in up-front collaboration and licensing expenses related to Gilead’s global research and development collaboration agreement with Galapagos NV.
Foster City, Calif.-based Gilead reported total revenue of $5.60 billion for the third quarter, almost flat compared to the year-ago period. Gilead's non-GAAP research and development expenses during the quarter increased year over year to $954 from $844 million.
The biotechnology company said its quarterly product sales increased to $5.52 billion from $5.46 billion in the same period a year ago.
HIV product sales were $4.20 billion for the third quarter of 2019, compared to $3.72 billion for the third quarter of 2018. The increase in sales is mainly attributed to a rise in uptake of Biktarvy, which saw total sales of $1.26 billion for the quarter.
The sales of chronic hepatitis C products — which comprise Epclusa, Harvoni, Vosevi and Sovaldi — this quarter were down 25.3% to $674 million from $902 million in the third quarter of 2018. The decline was primarily due to competitive dynamics, Gilead noted in its Oct. 24 earnings release.
Gilead increased its forecast for product sales during the full year to be in the range of $21.80 billion to $22.10 billion, compared to earlier expectations of $21.60 billion to $22.10 billion. The company also increased its expectations for research and development expenses to be in the range of $3.70 billion to $3.80 billion.
Gilead expects the EPS impact of acquisitions, up-front collaboration, stock-based compensation and other expenses for 2019 to be in the range of $3.90 to $4.00.