Gilead is scheduled to report its Q1 results after the close and host a conference call at 4:30 PM ET.

Current analyst estimates call for Q1 adj. EPS of $1.56 on revenues of $5.44 bln (+3% y/y).

TECHS:

After breaking out above the 66 level following its Q4 report, GILD shares have risen lately as it has become a COVID-19 trade. Currently, GILD looks like the front-runner in finding an effective treatment against COVID-19 after the FDA authorized emergency use of its Remdesivir against COVID-19. 

GILD has a market cap of 104 bln and trades at a P/E of 12x & P/S of 4.4.

RESULTS

Gilead Sciences beats by $0.12, beats on revs

Reports Q1 (Mar) earnings of $1.68 per share, excluding non-recurring items, $0.12 better than the S&P Capital IQ Consensus of $1.56; revenues rose 5.1% year/year to $5.55 bln vs the $5.44 bln S&P Capital IQ Consensus.

  • Product sales for the first quarter 2020 were $4.0 billion in the United States, $927 million in Europe and $551 million in other locations.

  • HIV product sales were $4.1 billion for the first quarter 2020 compared to $3.6 billion for the same period in 2019. The increase was primarily driven by higher sales volume as a result of the continued uptake of Biktarvy (bictegravir 50 mg/emtricitabine 200 mg/tenofovir alafenamide 25 mg) and increased customer buying patterns and patient prescription trends due to the pandemic.

  • Gilead also took significant steps to expand remdesivir manufacturing production, announcing the expectation that more than 140,000 treatment courses of remdesivir will be manufactured by the end of May 2020. As Gilead continues to work with international partners to expand production, Gilead announced it anticipates more than one million treatment courses will be manufactured by December 2020, with plans to be able to produce several million treatment courses in 2021. However, these projections assume a 10-day dosing duration, and the number of treatment courses expected to be available may actually be higher based on the recent topline results from the first Gilead SIMPLE study, which suggests the potential for certain patients to be treated with a shorter dosing duration.

  • Gilead will continue to monitor the impact of the COVID-19 pandemic and expects to provide additional insights and outlook on its second quarter 2020 earnings call when Gilead expects there will be additional clarity on the duration and magnitude of the impact of the COVID-19 pandemic and the development of remdesivir.

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