By Deena Beasley
(Reuters) -Gilead Sciences Inc on Thursday reported first-quarter revenue that fell short of Wall Street estimates as the coronavirus pandemic hurt sales of its flagship HIV and hepatitis C drugs, partially offset by sales of COVID-19 antiviral treatment remdesivir.
Shares of the biotech company, which closed at $63.84 in regular trading, were down 2.6% after hours at $62.20.
Gilead reported adjusted earnings of $2.08 per share, edging out the average analyst estimate of $2.07 as compiled by Refinitiv.
Revenue for the quarter rose 16% to $6.4 billion, helped by $1.46 billion in remdesivir sales. But total revenue still fell short of Wall Street estimates of $6.73 billion.
For full-year 2021, Gilead said it continues to expect adjusted earnings per share of $6.75 to $7.45 on product sales of $23.7 billion to $25.1 billion.
“Reiteration of guidance may help provide some comfort most of this represents seasonality exaggerated by pandemic pressures,” RBC Capital Markets analyst Brian Abrahams said in a research note.
Gilead said the COVID-19 pandemic continued to hurt sales of HIV and hepatitis C drugs, due to fewer people going to doctors during the pandemic. It now expects a more gradual recovery in the market starting in the current quarter.
“Our core business was impacted by COVID-19 more than we had expected,” Chief Executive Daniel O’Day said during a conference call with investors.
Excluding remdesivir, Gilead’s product sales fell 11% to $4.9 billion.
Sales of remdesivir, which is sold under the brand name Veklury, were also below analysts’ estimates of $1.56 billion. The company said Veklury sales would continue to be subject of significant volatility and uncertainty.
Gilead earlier this week said it would provide support to local manufacturing facilities in India, where the COVID-19 pandemic is raging out of control, and donate active pharmaceutical ingredient to scale up remdesivir production.
(Reporting By Deena BeasleyEditing by Bill Berkrot)