Gilead dazzles, profits double in Q1 on strong hep C sales
- For Q1 2015, Gilead's EPS rose to $2.94 per share from $1.48 per share in Q1 2014.
- Revenues increased 52% to $7.59 billion for the first quarter, and the company reported that its quarterly profits had nearly doubled .
- First-quarter sales were largely based on strong sales of Solvaldi and Harvoni, which brought in a combined $4.55 billion. Based on the strong results, Gilead raised its 2015 sales outlook from $26-$27 billion to $28-$29 billion.
For Gilead, this is the golden age of hepatitis C treatment breakthroughs—and the spoils that come with a winning therapy. During Q1 2015 alone, 90,000 patients in Europe and the U.S. were started on treatment with either Solvadi or Harvoni.
Based on positive Q1 results that greatly exceeded analysts' expectations, Gilead has raised its year-long outlook from a range of $26 billion to $27 billion, to a range of $28 billion to $29 billion—and as some analysts have already pointed out, that's pretty striking considering Gilead's tendency to be conservative about its outlooks. The stock rose about 4% on the positive news, and has gained a total of 28% in the last year.
While Gilead is pleased about the Q1 results, the company is most focused on developing new hepatitis therapies and continuing to have a strong presence as a leader in virology.