Introduction
Gilead Sciences, a biopharmaceutical company based in Foster City, California, has reported a drop in second-quarter profit. This decline can be attributed to a settlement in HIV antitrust litigation and higher operating costs. Despite these challenges, the company’s revenue saw a modest increase driven by sales of HIV and oncology therapies.
Financial Overview
For the quarter ended June 30, Gilead Sciences recorded a profit of $1.05 billion, or 83 cents per share. This represents a decrease from the $1.14 billion profit, or 91 cents per share, reported in the same quarter last year. However, when considering adjusted earnings, the company’s earnings per share stood at $1.34.
Revenue Growth
Gilead Sciences’ revenue for the second quarter rose by 5.5% to reach $6.6 billion, surpassing analyst estimates of $6.54 billion. This growth was primarily driven by increased sales of HIV and oncology therapies. However, lower sales of Veklury partially offset this positive trend.
Factors Influencing Profit Decline
The decline in profit can be attributed to several factors. Gilead Sciences incurred a litigation accrual of $525 million for settlements with specific plaintiffs, which impacted per-share earnings by 32 cents. Additionally, higher operating costs and tax expenses further contributed to the decline.
