By Deena Beasley
Oct 29 (Reuters) - Gilead Sciences hiked its full-year sales outlook on Thursday and reported third-quarter product sales rose 13%, driven by a double-digit percentage jump for its flagship HIV drug franchise.
The company reported quarterly adjusted earnings of $2.55 per share on revenue of $8.3 billion, beating the average analysts' estimates of $2.19 a share and $7.8 billion in revenue, according to LSEG data.
Gilead's shares, which rose 4% in regular trading, were up another 2.2% at $169.25 after hours.
The Foster City, California-based company said sales of HIV drug Biktarvy rose 10% to $4.1 billion, beating analyst expectations of $3.86 billion.
Gilead said the US Centers for Medicare & Medicaid Services will reduce by 38% the price it pays for Biktarvy starting January 1, 2028, under the Medicare health program for people age 65 and over. The HIV drug was one of 15 medications selected for the third round of annual price negotiations under the Inflation Reduction Act of 2022.
The new "maximum fair price" of $2,600 for a 30-day supply will reduce Gilead's 2028 Biktarvy sales by about $1.5 billion, although the drugmaker still expects overall HIV revenue to increase compared to 2027, Chief Financial Officer Andrew Dickinson said during a conference call.
Gilead's quarterly results met "increasing expectations," RBC Capital Markets analyst Brian Abrahams said in a research note. But he added, after the stock's performance, "some may begin to wonder how much their HIV franchise revenue growth can persist longer-term given potential branded/generic competition and IRA (pricing) effects."
Year to date, Gilead's shares have gained 36%.
For 2026, Gilead said it now expects product sales of $31 billion to $31.3 billion, up from a previous estimate of $30.1 billion to $30.4 billion.
The drugmaker, however, also increased its estimated full-year adjusted loss per share to between $1.20 and $0.85, from a previous range of $0.65 to $0.30, citing the impact of $12.4 billion in deal-related charges.
Overall HIV sales for the quarter rose 18% to $6.2 billion, mainly driven by higher prices, higher demand for HIV prevention drugs and favorable inventory dynamics.
Third-quarter sales for the company's liver disease portfolio rose 13% to $927 million.
Gilead said cell therapy sales decreased 18% to $355 million, reflecting ongoing competition, while sales of cancer drug Trodelvy rose 42% to $506 million, primarily driven by higher demand.
(Reporting By Deena Beasley in Los Angeles; Editing by Bill Berkrot)