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Gilead Sciences, based in Foster City, California, focuses primarily on antiviral drugs for the treatment of HIV and hepatitis B. Gilead overtook GlaxoSmithKline plc (GSK | Quote | Chart | News | PowerRating) as the leader in the treatment for HIV in 2007. The company's HIV drugs include Truvada, Atripla, Viread and Emtriva. Besides HIV and hepatitis, the company also focuses on treatment for pulmonary arterial hypertension.
Net income for the fourth quarter of 2008 was $568.2 million or $0.60 per share, compared to $401.6 million or $0.41 per share in the year-ago quarter. Gilead's recent fourth quarter net income includes after-tax stock-based compensation expense of $30.3 million, while the year-ago quarterly net income includes after-tax stock-based compensation expense of $25.1 million.
Excluding the after-tax stock-based compensation expense, non-GAAP net income for the quarter climbed to $598.5 million or $0.63 per share from $426.8 million or $0.44 per share in the year-ago period. On average, 23 analysts polled by FirstCall/Thomson Financial expected the company to earn $0.55 per share.
The company's total revenues, which include product sales, royalty, contract and other revenues, increased to $1.43 billion from $1.09 billion in the year-earlier period. Wall Street analysts had a consensus revenue estimate of $1.44 billion.
Product sales for the quarter were $1.39 billion, up from $1.03 billion in the year-ago period.
During the quarter, antiviral product sales increased 35% to $1.27 billion, driven primarily by the sales volume growth of Atripla and Truvada, as well as a favorable foreign currency exchange impact.
Truvada sales for the quarter increased 25% to $562.1 million, while Atripla sales rose 79% to $465.5 million.
Other antiviral product sales, including Viread, Hepsera and Emtriva increased 5% to $245.3 million for the fourth quarter of 2008, compared to prior-year quarter.
Gilead said that quarterly sales of AmBisome liposome for injection for severe fungal infections increased 12% to $76.0 million, compared to year-ago period. Sales of Letairis, a pulmonary arterial hypertension treatment for the quarter increased two-fold to $36.2 million.
For the fourth quarter of 2008, royalty, contract and other revenues resulting primarily from collaborations with corporate partners declined 41% to $40.4 million, due to lower Tamiflu royalties from Roche.
The company said that during the quarter, it spent $201.9 million on research and development, up from $184.6 million for the comparable quarter in 2007.
In October 2008, Gilead entered into an agreement to repurchase $750.0 million of its common stock under an accelerated share repurchase program. Gilead repurchased the shares under the $3.0 billion share repurchase program announced in October 2007.
For the year ended December 31, 2008 the company's net income rose to $2.01 billion or $2.10 per share from $1.62 billion or $1.68 per share in 2007.
Excluding stock-based compensation expense, net income for the year was $2.13 billion or $2.22 per share, compared to $1.75 billion or $1.81 per share a year before. Wall Street analysts were looking for earnings of $2.05 per share.
Gilead's total revenues for the year increased to $5.34 billion from $4.23 billion in 2007, and matched analysts' consensus revenue estimate. Product sales in 2008 jumped to $5.08 billion from $3.73 billion in 2007.
None of Gilead's major revenue producing drugs is slated to go off patent in the near future. The company's HIV franchise, which includes Truvada, Atripla, Viread, Emtriva and accounted for 85% of the total product sales in 2008 and not one of them is expected to lose patent exclusivity before 2017. Gilead's blockbuster AIDS drug Truvada, which raked in annual sales of $2.10 billion, representing a year-over year growth of 33%, has patent protection till 2021. Gilead also earns royalties from anti-flu drug Tamiflu whose patent is valid till 2016 and Macugen, a treatment for wet macular degeneration, which has patent protection till 2017.
GILD has been trading in the range of $35.60 - $57.63 in the last twelve months. The stock closed Tuesday's trade at $48.23, down 0.33% on a volume of 7.59 million shares. In after-hours, the stock shed 2.03% and was at $47.25.
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