- Gilead's Q3 earnings were $5.97 billion, compared with $2.71 billion for Q3 2013.
- Sovaldi (sofosbuvir) sales dropped from $3.5 billion in the third quarter to $2.8 billion in the second quarter.
- Gilead's stock dropped on the news, but look for a rebound. Many experts feel that the lower-than-expected Sovaldi earnings are related to the introduction of Gilead's newly-approved fixed-dose combo drug Harvoni (sofosbuvir/ledipasvir), which can be used without additional treatment agents.
Call it cannibalism, but the introduction of Harvoni is a smart long-term strategy for Gilead, especially as cost-effectiveness analyses from respected experts show that paying up front for hep C treatment can save money later.
Gilead had a Q3 EPS of $2.05, which actually beat many analysts' expectations. Gilead is also starting to focus on its oncology franchise and still has a very strong HIV/AIDS portfolio. All told, the company is well-positioned for a good year, and the slump in stock price is likely to fade.