How Did Gilead Sciences’ HCV Franchise Perform in Q1?


May. 6 2019, Published 7:12 a.m. ET

HCV franchise revenue performance

In the first quarter, Gilead Sciences (GILD) reported worldwide HCV product sales of $790 million, a YoY decline of 24.47% but a sequential rise of 7.05%. According to the company’s first-quarter earnings investor presentation, increasing competition, lower new patient starts, and a decline in HCV product pricing by Medicare in the US had an unfavorable impact on the company’s HCV sales.

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Performance by geography

Gilead Sciences reported revenues of $393 million from the US market in the first quarter, a YoY decline of 32.71% and a sequential decline of 4.14%. According to the first-quarter earnings conference call, pricing alignment of Medicare and commercial segments, lower new patient starts, and increasing competition affected the company’s HCV product sales in the US market. However, the company benefitted by an earlier-than-anticipated Department of Corrections order related to the treatment of HCV in correctional facilities. The company has also reported a favorable impact associated with wholesaler inventory stocking of authorized generics marketed by subsidiary Asegua. Asegua is expected to accelerate the launch of authorized HCV generics in the US market in the second half of fiscal 2019.

Gilead Sciences reported HCV sales of $203 million from the European market in the first quarter, a YoY decline of 25.09% but a sequential rise of 7.98%. According to the first-quarter earnings conference call, while Gilead Sciences suffered due to lower patient starts, unfavorable accounting adjustments led to a sequential rise in sales in the first quarter. The company has been capturing market share with Epclusa in countries such as Spain, France, and the United Kingdom. The company launched Epclusa in February 2019 and reported higher new patient starts in Asia in the first quarter.



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