(Reuters) – Gilead Sciences Inc on Tuesday posted lower-than-expected fourth-quarter earnings, citing a $1.25 billion legal settlement involving HIV drug patents and a charge related to its collaboration with Arcus Biosciences Inc.
Gilead reported adjusted quarterly earnings of 69 cents per share, down from $2.19 a year earlier. Wall Street analysts had forecast $1.60 per share, as compiled by Refinitiv.
Net income for the quarter fell to 30 cents a share from $1.23 per share.
Gilead’s revenue fell slightly to $7.24 billion from $7.42 a year earlier, but came in ahead of the average analyst estimate of $6.67 billion.
Product sales for the quarter fell 2% to $7.2 billion.
Sales of COVID-19 drug Veklury, known chemically as remdesivir, decreased 30% to $1.4 billon, but still easily surpassed the $864 million expected by analysts.
Fourth-quarter sales of Gilead’s HIV medicines rose 7% to $4.5 billion. The company had said in October that sales of non-COVID treatments, particularly of its flagship HIV drugs, were hurt during the pandemic as many people avoided healthcare settings, but had started to recover.
Quarterly sales of breast cancer drug Trodelvy came in at $118 million, in line with analyst estimates of $116 million.
For full-year 2022, Gilead said it expects adjusted earnings of $6.20 to $6.70 per share on product sales of $23.8 billion to $24.3 billion.
(Reporting By Deena Beasley; Editing by Bill Berkrot)
