Gilead Sciences, Inc. (NASDAQ:GILD) is not trending up in the stock market even though they have reported impressive numbers, Meg Tirrell noted in a report on CNBC.
She explained why Gilead Sciences, Inc. (NASDAQ:GILD) is not soaring in the market though they posted a blowout quarter saying:
“The [earnings]call is going on now. It’s a blowout quarter for Gilead both on earnings and on sales really all on the shoulders of their Hepatitis C drug Sovaldi which came at $3.48 billion in second quarter sales. That is compared to $2.6 to $2.9 billion that analysts may have been looking for but they say that the whisper number was actually $3.5 billion which may explain why the stock isn’t soaring even on $3.5 billion in sales in the second quarter.”
The CNBC correspondent then went on to give viewers more information about Gilead Sciences, Inc. (NASDAQ:GILD) and their Sovaldi drug. She explained:
“A little more information on the call about [Sovaldi sales]: 80,000 patients in the U.S. and Europe have been treated with Sovaldi. More than 9,000 patients have been cured of Hepatitis C with this drug, they say. So a lot of questions going on about the reimbursement this has, that controversial $84,000 price tag: that’s a thousand dollars a day. [There are] a lot of questions about that and also what they will do with the all cash that is coming in. Will they buy something?
Tirrell was also asked what people should expect will be the next catalyst for Gilead Sciences, Inc. (NASDAQ:GILD). According to Tirrell, people may be wondering what can move the company if $3.5 billion in sales does not move it. She said that there is a combo pill for Hepatitis C coming out and that the company is also delving into HIV treatment. Watch the video below.