Gilead Sciences, Inc. (NASDAQ:GILD) 4Q2016 Product Sales At $7.2 Billion

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Gilead Sciences, Inc. (NASDAQ:GILD) issued its financial report for 4Q2016, wherein the total revenues came at $7.3 billion against the revenue of $8.5 billion for the comparable period in FY2015. Net income for 4Q2016 was $3.1 billion compared to $4.7 billion for the same period in FY2015. Non-GAAP net income for 4Q2016 was $3.6 billion compared to $4.9 billion for the same period in 2015.

Some analysts were concerned that the warehousing impact on Epclusa in 4Q2016 would drive lower than anticipated sales this quarter, but the market has witnessed a pleasant surprise.

The details

Total product sales for 4Q2016 came at $7.2 billion against the total product sales of $8.4 billion for the comparable period in FY2015. Product sales for 4Q2016 amounted to $4.9 billion in the U.S., $314 million in Japan, $1.4 billion in Europe, and $556 million in rest of the locations. These figures compares to product sales for 4Q2015 that came at $4.8 billion in the U.S., $1.4 billion in Japan, $1.7 billion in Europe and $565 million in rest of the other locations.

Non-HCV revenue was below expectations, which is unfortunate as shareholders have been hoping more from the HIV segment and they aren’t seeing it. Gilead does mention about upside in US HIV, however it appears rather slight as against to what analysts anticipated. As such, the disappointment isn’t large, it is lower than anticipated growth in a division that shareholders are highly dependent on considering the decline of HCV sales.

The company still has considerable downside, with valuation beginning to cross over into supposing negative growth forever zone. This comes as no wonder given how crushed Gilead has been in the last few months as the firm offered a miracle business to shareholders in HCV and then torn it away nearly as quickly.

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