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Summary
- Nasdaq-listed biopharmaceutical company Gilead has been in the limelight with strong sales of remdesivir in 2020.
- Total revenues of Gilead for the fourth quarter and full-year 2020 rose by 26% and 10%, respectively.
- Immunomedics acquisition to contribute immediately to the revenue growth of Gilead.
American biopharmaceutical player Gilead Sciences Inc (Nasdaq:GILD) continues to play a central role in the COVID-19 pandemic, with its drug remdesivir (Veklury®).
On 4 February 2021, the biopharmaceutical player announced its Q4 and FY 2020 results, reporting strong sales led by Veklury®. The Company also updated the market with its guidance for full-year 2021.
Post the announcement of results, on 4 February 2021, GILD shares closed the day’s trade at US$65.83, up by 2.03% on Nasdaq.
Gilead witnesses better-than-expected revenue growth with Veklury® sales
Total revenues for the fourth quarter and full-year 2020 rose 26% and 10%, respectively, compared to 2019. The Company stated that the launch of Veklury® in 2020 supported growth in revenue. The quick highlights from the quarterly and full-year results are:
Fourth Quarter 2020 on YoY:
- Total product sales increased by 26% to US$7.3 billion, mainly due to Veklury® (remdesivir).
- Veklury® sales contributed almost US$1.9 billion in sales of 4Q.
- Cell therapy product sales, including Yescarta® and TecartusTM, rose by 34% to US$163 million for the quarter.
Gilead’s strong performance driven by Veklury® sales (Source: Copyright © 2021 Kalkine Media Pty Ltd.)
Full-year 2020 YoY Performance
- Product sales rose by 10% to US$24.4 billion, primarily due to Veklury® sales.
- Veklury® had contributed approximately US$2.8 billion in sales for 2020.
- Cell therapy product sales increased by 33% to ~US$607 million for the full-year 2020.
Notably, Gilead highlighted that Trodelvy generated US$49 million sales in the US, after the acquisition of Immunomedics on 23 October 2020.
Gilead’s Product Sales, Source: Gilead Update, 4 February 2021
Daniel O’Day Chairman and CEO, Gilead Sciences commented:
MUST READ: How Does Gilead’s Antiviral Drug Remdesivir Help to Combat COVID-19?
Outlook and Full-year 2021 Guidance
COVID-19 pandemic continues its impact on Gilead’s business and broader market dynamics, including market volume for HCV and HIV.
Gilead’s outlook for 2021:
In a nutshell, the Company is well-placed to drive its future development potential through the new oncology pipeline.
The Company further notified that Veklury® (remdesivir) sales are subject to significant market volatility and uncertainty amid a highly complex global health environment.
Gilead’s full-year 2021 guidance-
- Product sales, including Veklury®, expected in the range of US$23.7 billion-US$25.1 billion.
- The Company anticipates operating expenses to be flat or report a low single-digit percentage decline.
- Non-GAAP Diluted earnings per share (EPS) anticipated in the range US$6.75-US$7.45.
Increase in First Quarter 2021 Dividend
Gilead also announced that the Board of Directors had declared an increase of 4.4% in the quarterly cash dividend, starting in the first quarter of 2021. The increase will result in a quarterly dividend of US$0.71 per share of common stock.
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