Top Stories
Top Stories
Wires

UPDATE 1-Gilead beats revenue estimates as HIV drugs offset weak hep C demand

(Adds details, background, forecast, estimates)

July 30 (Reuters) - Gilead Sciences Inc beat analysts' estimates for quarterly revenue on Tuesday, driven by higher sales of its HIV treatments, and the drugmaker raised its 2019 sales forecast.

The company is expanding into newer therapeutic areas under new Chief Executive Officer Daniel O'Day as the hepatitis C market it once dominated contracts.

O'Day, a Roche veteran who took charge in March, has made strengthening Gilead's drug development pipeline, both internally as well as through acquisitions or partnerships, his first priority.

The company earlier this month announced a $5.1 billion investment in Belgo-Dutch biotech Galapagos NV, deepening a partnership and pushing deeper into fibrosis and arthritis treatments.

The California-based company said on Tuesday it now expects sales of $21.6 billion to $22.1 billion in 2019, compared with its prior forecast of $21.3 billion to $21.8 billion.

Total revenue rose to $5.69 billion in the second quarter, beating the average analyst estimate of $5.53 billion, according to IBES data from Refinitiv.

Sales of Gilead's HIV drugs, which accounted for about 71% of the company's total sales, rose to $4.04 billion from $3.67 billion. The sales jump was driven by demand for its new HIV treatment Biktarvy, the company said.

Biktarvy sales surged to $1.12 billion from $185 million, a year earlier.

Sales of hepatitis C drugs dropped again, falling to $842 million from $1.0 billion, as many patients have been cured of the liver-damaging virus and rival products, particularly from AbbVie, have captured market share from a shrinking patient pool.

Net income attributable to Gilead rose to $1.88 billion, or $1.47 per share, in the second quarter ended June 30, from $1.82 billion, or $1.39 per share, a year earlier.

(Reporting by Manojna Maddipatla in Bengaluru; Editing by Sriraj Kalluvila)