ilead down 3% premarket after Q4 results, $820M impairment charge to R&D
Feb. 5, 2019 8:27 AM ET|About: Gilead Sciences, Inc. (GILD)|By: Douglas W. House, SA News Editor
Gilead Sciences (NASDAQ:GILD) is down 3% premarket on light volume after it posted Q4 results yesterday after the close. Sales were down almost 3% while non-GAAP earnings were down 20%.
On a product sales basis for 2019, HIV should grow $1.6B - 1.8B and cell therapy about $200M, offset by expected declines in HCV (-$0.8B - 1.0B) and U.S. Letairis and Ranexa patent expirations (-$1.1B - 1.2B).
Another negative development was an $820M write-down to R&D in Q4, largely related to its anti-BCMA CAR-T being developed by its Kite Pharma unit (KITE-585). Last month, Chief Scientific Officer John McHutchison said the company would not be advancing the candidate due to lackluster preliminary results. Some analysts predict more write-offs are coming.
And lastly, new chief Daniel O'Day has yet to join the company. He won't be on the job until next month.