Boston, MA 10/31/2013 (wallstreetpr) – Hundred Billion Dollar Biopharmaceutical Company Gilead Sciences, Inc. (NASDAQ:GILD) has come out with stellar results which look to have received a booster shot from sale of its HIV drugs.
Company has been able to increase its revenues by 15% to $2.78 billion. This is almost 60 million dollars more than what analysts were expecting. On the earnings front too, company was able to beat market expectations and did 47 cents per share in the third quarter. This is almost 10% more than 43 cents per share or $675.5 million which company managed in Q3 last year. It should also be noted that there were some extraordinary one-time costs related to employee payments, which if not accounted for would have raised the earnings to 52 cents per share. The revenues have risen significantly because of better than expected sales of company’s drug Stripid, which was launched same time in last year.
The company management is also upbeat about sustenance of this trend of good results and has revised its guidance upwards. Company now envisages revenues to be in range of $10.3 to $1.4 billion for full year. This is almost $300 million more than what it had earlier predicted. The company is also upbeat about its new Hepatitis C drug Sofosbuvir. The US FDA has unanimously voted for giving approval for launch of the drug. Company expects to receive the formal approval by first week of December 2013. The drug is remarkable and much-awaited because present medications take anywhere above an year and have a success rate of 75%. With Sofosbuvir, the results are produced in less than 12 weeks with 90% success rate. Company has paid $11.1 billion for acquisition of this wonder drug when it acquired Pharmasset in 2012.
With so much optimism surrounding the stock, analysts are of view that stock may see some correction in near term and if long term investors are able to accumulate the stock near $66, then it can turn out to be a multi bagger in years to come. The stock currently trades at $72.13.
