Boston, MA 04/25/2014 (wallstreetpr) – Gilead Sciences, Inc. (NASDAQ:GILD)’s Sovaldi reported sales of $2.27 billion in the first quarter ended in March 31, 2014. The Company’s $1,000 pill has made a significant increase in sales and beat the average estimates of ~$1 billion. The shares of Gilead rose by 39% in last 12 months, and last traded at $74.08.
The outstanding sales of Sovaldi have increased Gilead’s revenue to $5 billion from $2.53 billion in 1Q2013 that improved the adjusted profit to $2.49 billion or $1.48 per share.
Worrying effect
Gilead Sciences, Inc. (NASDAQ:GILD)’s Sovaldi sells for $84,000 for a 12-week course of treatment. High costs of treatment become a focal point of discussion among healthcare professional, insurers and lawmakers. Furthermore, generic players like Natco challenges Gilead on Sovaldi’s patent as well as price per treatment.
But, high efficacy and safety profile creates high demand in hepatitis C market compared to other alternatives that have potential side effects. Price war continues until an alternative available in the market. Companies like AbbVie’s and Merck’s medicines are far away from Sovaldi as they are still in different stages of development.
Going ahead
As of now, about 30,000 patients have used Sovaldi, and the number continues to increase with growing demand. Gilead also focuses on regulatory approval for the combined therapy of Sovaldi with other agents to improve patients’ immune system. The increasing options will accelerate growth and anticipate in generating sales of $11.9 billion by 2017.
Gilead has a leading position in antiviral medications with a series of products including Atripla, Complera and Stribild. The addition of Sovaldi has improved the antiviral product sales by 119% to $4.5 billion in 1Q2014 and continues to report higher sales in coming years. As a result, Gilead Sciences, Inc. (NASDAQ:GILD) expects net product sales of $11.3-$11.5 billion and adjusted profit of $0.63-$0.66 per share in FY2014.
