Investing.com -- Shares in Gilead Sciences Inc (NASDAQ:GILD) fell sharply in after-hours trading after sales in its popular Hepatitis C drug Harvoni tumbled 29% last quarter, dragging down company revenues overall.
Over the company's second quarter of 2016, which ended in late-June, Harvoni sales plunged by nearly one-third on a year-over-year basis to $2.56 billion, offset partially by a 5.2% gain in Solvadi revenues to $1.36 billion. At the same time Gilead said Epclusa, another Hepatitis C drug that was approved by the U.S. Food and Drug Administration (FDA) last month, generated $64 million in revenues. Epclusa, which combines Solvadi with another drug called Velpatsvir, is the first drug to gain FDA clearance for all six forms of Hepatitis C. When the FDA approved Epclusa last month, Gilead priced the 12-week treatment at just under $75,000 per patient. By comparison, Solvadi and Harvoni are priced at $84,000 and $94,000 respectively.
Meanwhile, analysts expected to see Harvoni sales of $2.87 billion and sales of Solvadi of $1.19 billion for the quarter. In total, Gilead reported net profit of $3.5 billion or earnings per share of 2.58. On an adjusted per share basis, excluding acquisition and other related expenses, Gilead's earnings fell from 3.15 to 3.08. As revenues fell precipitously among Gilead's Hepatitis C drugs, overall product sales declined 5.8% to $7.65 billion.
Analysts expected to see product sales of $7.77 billion on adjusted per-share earnings of 3.02.
Moving forward, Gilead reduced its annual product sales outlook from $30-$31 billion to a range between $29.5 and $30.5 billion following the subdued quarter.
Shares in Gilead plunged 3.45 or 3.90% to 85.10 in after-hours trading.