Gilead stock falls on Sovaldi sales miss

CNBC with Reuters
Gilead sinks on earnings

Gilead Sciences reported Tuesday that sales of its Hepatitis C drug, Sovaldi, fell nearly 20 percent from the prior quarter. The stock dropped nearly 3 percent in after-hours trading.

Gilead also announced its third quarter earnings, posting comparable earnings per share of $2.05, excluding certain items, and revenue of $6.04 billion.

Analysts had expected the company to report earnings of $1.92 a share on $5.99 billion in revenue, according to a consensus estimate from Thomson Reuters.

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The company, which received U.S. regulatory approval earlier this month for new Hepatitis C drug Harvoni, said total product sales for the quarter more than doubled to $5.97 billion from $2.71 billion a year earlier.

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Third-quarter Sovaldi sales totaled $2.8 billion, while the prior quarter boasted sales of $3.48 billion. Analysts had anticipated a slowdown as some demand may be waiting for the new treatment, but Tuesday's announcement came in below those tempered expectations. Wall Street analysts, on average, had called for $2.97 billion, according to Deutsche Bank.

"To date approximately 117,000 patients have been treated with Sovaldi and with the introduction of Harvoni—a single tablet regimen for the treatment of HCV-infected individuals which does not require either interferon or ribavirin—many more patients will have the potential to be cured of HCV infection," said John C. Martin, Gilead's Chairman and CEO in the press release accompanying the announcement.

—Reuters contributed to this report.