Gilead unexpectedly cashes in with nearly $900 million in sales of COVID-19 drug
Gilead Sciences Inc.’s prominent COVID-19 drug unexpectedly brought in $100 more million in sales than analysts had expected in the third quarter, but that doesn’t mean Wall Street’s questions about Veklury have faded away.
Shares of Gilead GILD, -0.64% were down 2.0% in trading on Thursday, the day after the company shared that Veklury, the antiviral drug also referred to as remdesivir, brought in $873 million in sales for the third quarter of 2020 — a figure that is significantly higher than what analysts had expected. The FactSet consensus was $771.7 million.
“It was essentially a ‘so-so’ quarter for Gilead as the future for remdesivir as a long-term growth driver is not clear,” Maxim Group’s Jason McCarthy told investors on Thursday.
Analysts and physicians have been largely ambivalent about Veklury’s potential, with some taking aim at the fact the recent Food and Drug Administration approval failed to take into account three negative clinical trials and concerns about the longer-term financial potential of the therapy.
“We’ve been vocal in our view that Veklury might not work at all in most hospitalized COVID-19 patients,” Raymond James analyst Steven Seedhouse told investors.
https://www.marketwatch.com/story/gilead-unexpectedly-cashes-in-with-nearly-900-million-in-sales-of-covid-19-drug-2020-10-29?mod=home-page
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