Gilead Sciences Inc. (NASDAQ: GILD)
On Thursday April 28th 2016, Gilead Sciences released their first quarter earnings results. Unfortunately for the biotech behemoth, earnings tumbled over 17 percent to only $3 billion dollars.
The company attributed this shortfall to sales of their blockbuster Hepatitis C drug which was substantially affected greatly by having to offer huge discounts to private insurers and much higher rebates for patients that are in a health plan which is similar to Medicaid but run by the government.
The shares which traded in heavy volume during the regular session closed down $3.72 at $97 which was down 3.69%. In the after hour trading session, shares went further lower The $91.69 which was down $5.31 for an additional 5.47%.
Total earnings came in at $2.53 per share compared with $2.76 per share in the prior-year period. Revenues came in at 7.79 billion, which missed analysts forecasts of 8.13 billion.
When we look at the daily price chart going back to September of 2015 we will see the red resistance line and the green support line which forms some would have a triangle. The Red Arrows indicate the resistance points and the Green Arrow’s the support points. the red circled area shows where the stock will likely open in the morning in that $91 price range. Many Traders will be watching to see how the stock reacts to a level that is well below support now and in the proverbial no “man’s land”.
Company & Analyst Comments
“This was a weak quarter for Gilead, in our view, as sales for hepatitis C treatments surprisingly missed expectations,” said Edward Jones analyst Ashtyn Evans, in a note.-AssociatedPress
Gilead Chief Financial Officer Robin Washington said on a conference call that U.S. Harvoni sales declined due to an “increase in discounts required to open up access to patients with lower (liver) fibrosis scores,” as well as a modest shift in sales to deeply-discounted government payers, including the Department of Veterans Affairs.-Reuters
Gilead Sciences, Inc., a research-based biopharmaceutical company, discovers, develops, and commercializes medicines in areas of unmet medical needs in North America, South America, Europe, and the Asia-Pacific. The companys products include Genvoya, Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, Tybost, and Vitekta for the treatment of human immunodeficiency virus (HIV) infection in adults; and Harvoni, Sovaldi, Viread, and Hepsera products for the treatment of liver diseases. It also offers Zydelig, a PI3K delta inhibitor, in combination with rituximab, for the treatment of certain blood cancers; Letairis, an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa, a tablet used for the treatment of chronic angina; Lexiscan/Rapiscan injection for use as a pharmacologic stress agent in radionuclide myocardial perfusion imaging; Cayston, an inhaled antibiotic for the treatment of respiratory systems in cystic fibrosis patients; and Tamiflu, an oral antiviral capsule for the treatment and prevention of influenza A and B. In addition, the company provides other products, such as AmBisome, an antifungal agent to treat serious invasive fungal infections; and Macugen, an anti-angiogenic oligonucleotide to treat neovascular age-related macular degeneration. Further, it has product candidates in various stages of development for the treatment of HIV/AIDS and liver diseases, such as hepatitis B virus and hepatitis C virus; inflammation/oncology; serious cardiovascular; and respiratory conditions, as well as diabetic nephropathy and ebola. The company markets its products through its commercial teams and/or in conjunction with third-party distributors and corporate partners. Gilead Sciences, Inc. has collaboration agreements with Bristol-Myers Squibb Company, Janssen R&D Ireland, Japan Tobacco Inc., and Galapagos NV. The company was founded in 1987 and is headquartered in Foster City, California.-YahooFinance