Gilead Sciences crushed third-quarter expectations as sales of its cancer drugs nearly doubled, helping GILD stock to break out Friday.
The bullish report follows recent approvals for personalized cancer drugs Yescarta and Tecartus in Europe. Both belong to the CAR-T class of drugs in which a patient's own immune cells are taught to find and destroy cancer. On a year-over-year basis, sales of Gilead's cancer drugs surged 79%.
"In oncology, there is increasing demand for cell therapies and Trodelvy," Chief Executive Daniel O'Day said in a written statement. Trodelvy treats breast and uterine cancer. "Overall, we are seeing terrific progress from a commercial and clinical perspective and look forward to building on this momentum."
On today's stock market, GILD stock soared 12.9% to 79.27. Shares easily surmounted a buy point at 74.22 out a saucer base, according to MarketSmith.com.
GILD Stock: HIV Drug Biktarvy Grows Bullishly
Across all products, Gilead's sales declined 5% to $7 billion. But that was far better than estimates for $6.13 billion, according to GILD stock analysts polled by FactSet.
Adjusted earnings skidded 28% to $1.90 per share but topped forecasts for $1.43. Gilead noted earnings took a hit following the acquisition of MiroBio, a privately held, U.K.-based biotech engaged in testing drugs that selectively block portions of the immune system.
The company also noted lower product gross margins and revenues.
Among cancer treatments, the best growth came from Yescarta. Sales surged 81% to $317 million. But sales of smaller contributors Tecartus and Trodelvy still advanced a respective 72% and 78%.
In addition to strong cancer treatment sales, Gilead reported 22% growth for its leading HIV drug, Biktarvy. Biktarvy generated $2.77 billion in third-quarter sales, accounting for almost 62% of total HIV drug sales. Gilead also noted it won approval for a new HIV drug, lenacapavir, in Europe. This drug requires less frequent dosing at one shot every six months.
Bearishly for GILD stock, Covid treatment Yescarta generated $925 million. Those sales plunged 52% amid lower Covid hospitalizations and less severe infections.
Guidance Easily Tops Forecasts
For the year, Gilead guided to $25.9 billion to $26.2 billion in product sales. That's $1.3 billion higher, at the midpoint, than the biotech company's guidance three months ago.
Excluding Veklury, Gilead expects $22.5 billion to $22.8 billion in full-year sales, up slightly from its prior outlook for $22 billion to $22.5 billion.
The company also expects adjusted earnings of $6.95-$7.15 per share, up 50 cents at the midpoint.
All metrics topped the average estimate of GILD stock analysts for adjusted profit of $6.51 per share and $25.28 billion in sales.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
