Despite Huge Hep C Drug Sales, Gilead Stock Falls On Forecasted Discounts
Gilead Sciences sold $10.3 billion-worth of its new hepatitis C drug Sovaldi in 2014, a figure that brought it close to being the best-selling drug in the world in its first year. But the drug's price has been controversial and the announcement on an investor call that it would be discounted this year by an average 46 percent lowered Gilead's share price in after-market trading.
The Wall Street Journal:
Hepatitis Drugs Lift Gilead Sciences’s Results
The two liver-disease drugs, called Sovaldi and Harvoni, notched $3.84 billion in sales in the fourth quarter, exceeding Wall Street estimates and making their launches the best ever for new drugs. For the full year, the two drugs reached $12.4 billion in sales, which combined would have been more than any drug’s revenue in 2013. The new drugs helped Gilead, once known for its HIV/AIDS treatments, to more than double its revenue to $7.31 billion in the quarter and $24.9 billion for the full year from the comparable periods in 2013. The two new drugs have also elevated Gilead into one of the world’s biggest pharmaceutical companies by sales. (Rockoff and Stynes. 2/3)
The New York Times:
Sales Of Sovaldi, New Gilead Hepatitis C Drug, Soar To $10.3 Billion
Gilead Sciences sold $10.3 billion of its new hepatitis C drug Sovaldi in 2014, a figure that brought it close to being the best-selling drug in the world in only its first year on the market. The sales figure, announced on Tuesday in Gilead’s earnings report for the fourth quarter, falls short of the $12.5 billion in sales recorded in 2014 by AbbVie’s autoimmune disease drug Humira, which is believed to be the world’s top-selling pharmaceutical. (Pollack, 2/3)
Bloomberg:
Gilead Falls As Hep C Drug Discounts Larger Than Expected
Shares of Gilead Sciences Inc. dropped after the world’s biggest biotechnology company forecast 2015 revenue that will be weighed down by discounts for its blockbuster hepatitis C drugs. Discounts in the U.S. for Harvoni and Sovaldi, which treat the liver virus, will climb to an average of 46 percent this year from 22 percent in 2014. (Chen, 2/3)
Investor calls for insurers Humana and Aetna and the hospital company HCA also got coverage -
The Wall Street Journal:
Humana Posts Higher Revenue And Expenses
Humana Inc. said its revenue jumped as the health insurer reported growth in membership, while medical expenses also increased. The results fell below analysts’ expectations. The company, which maintained its profit outlook for the year, said it is pleased with its direction even as it contends with Medicare rate reductions, costs associated with the launch of health care exchanges and higher income taxes. (Calia, 2/4)
The Wall Street Journal:
Aetna Raises Outlook As Revenue Beats Views
The company’s profit was in line with analysts’ expectations, while its revenue topped them. Aetna said it now expects at least $7 a share in earnings for 2015, up 10 cents from its previous projection. Aetna, like its rival health insurers, has benefited from higher enrollments driven by requirements under the federal Affordable Care Act. However, the industry has maintained concerns over rising care costs, particularly for expensive new drugs to treat hepatitis C. (Wilde Mathews and Calia, 2/3)
The Wall Street Journal:
HCA Holdings Gives Weak 2015 Earnings Outlook
HCA Holdings Inc. on Tuesday reported better-than-expected results in its fourth quarter but gave a soft earnings outlook for 2015. ... HCA also said its board authorized a $1 billion share-repurchase program. Last month, HCA previewed its results for the fourth quarter and full year 2014, saying its performance had been bolstered by an increase in admissions and emergency-room visits, along with a one-time adjustment from Medicaid payments in Texas. (Dulaney, 2/3)
