Gilead Projects 2009 Net Product Revenue $6.1 Billion-$6.2 Billion

Gilead Sciences Inc. (GILD) raised its projection for 2009 net product revenue to $6.1 billion to $6.2 billion in its first update since April's $1.4 billion acquisition of CV Therapeutics.

The updated expectations, up from a previous range of $5.9 billion to $6 billion, disappointed investors as shares dropped 4.6% to $46.30 in after-hours trading.

Wall Street currently projects total revenue for the quarter of $6.51 billion, which includes revenue from royalties, contracts and other sources, according to Thomson Reuters.

The Foster City, Calif., company, primarily known for its presence in selling HIV treatments, warned that its biggest products, Atripla and Truvada, could face pressure in the second half of the year as wholesalers decrease inventories.

Those levels rose during the quarter, despite consistent retail demand, as wholesalers bought more product ahead of a July 1 price increase on the drugs.

For the three months ended June 30, Gilead reported net income of $571.4 million, or 61 cents a share, up from $434.8 million, or 45 cents a share, a year earlier.

Excluding items, earnings rose to 69 cents a share, beating a Wall Street projection of 61 cents a share.

Revenue rose 29% to $1.65 billion, beating expectations of $1.6 billion.

-By Thomas Gryta, Dow Jones Newswires; 212-416-2169; [e-mail]