Gilead Sciences 1Q Net Up 20% On Strong Growth In Drug Sales

By Val Brickates Kennedy

Gilead Sciences Inc. (GILD) said Tuesday that its earnings climbed 20% in the first quarter, as the company marked strong growth in sales of its drug products.

The developer of HIV drugs posted net income of $586.6 million, or 63 cents a share, compared with $486.4 million, or 51 cents a share, for the same quarter in 2008. Excluding various items, Gilead would have reported adjusted earnings of 66 cents a share.

Revenue rose 21% to $1.53 billion, up from $1.26 billion. The company said that a stronger U.S. dollar pushed worldwide sales down by about $22.3 million.

According to a survey of analysts by FactSet, Gilead was seen as posting earnings of 59 cents a share, on revenue of $1.5 billion.

The company said sales of Truvada, which contains the Gilead drug Viread, jumped 23% to $590.4 million. Atripla, which also contains Viread, saw sales leap 57% to $509.9 million.

Analysts at J.P. Morgan said in a recent note that they expected combined sales of Gilead's HIV drugs to rocket 30% to $1.25 billion.

In March, Gilead agreed to buy CV Therapeutics for $1.4 billion in cash, trumping a previous offer by Japanese drug maker Astellas Pharma. Gilead said the merger will allow it to expand further into cardiology market.

Best known for its HIV drugs, which are also used to treat hepatitis, Gilead also markets two cardiovascular drugs, Flolan and Letairis. The products are used to treat pulmonary arterial hypertension.

CV Therapeutics, meanwhile, has two cardiac products on the market: Ranexa, for chronic angina, and Lexiscan, an agent used in certain types of cardiac stress testing. The firm also has drug candidates targeted at treating pulmonary illnesses and diabetes.

The deal closed on April 17.

Shares of Gilead were up 3.4% to $45.22 in after-hours trading.

-Val Brickates Kennedy; 415-439-6400; [e-mail]