Gilead misses Street, partners with MicroDose
Gilead Sciences Inc. (NASDAQ:GILD) reported 1Q11 financial results below the Street's estimates on Wednesday and announced a partnership with MicroDose Therapeutx Inc. (Monmouth Junction, N.J.) for MicroDose's respiratory syncytial virus (RSV) candidate MDT-637. MicroDose will be responsible for development of the dry powder inhalation product through Phase IIa testing, after which Gilead will be responsible for further development and commercialization. MicroDose will receive an undisclosed upfront payment and research funding, and is eligible for milestones and royalties. MicroDose plans to start Phase I testing of the small molecule antiviral fusion inhibitor this year.
After the market closed, Gilead reported 1Q11 non-GAAP diluted EPS of $0.87, missing by $0.10 the Street's estimate of $0.97 and down 12% from $0.99 in 1Q10. First quarter revenues decreased 8% to $1.9 billion from $2.1 billion in 1Q10. The Street was expecting $2 billion in revenue. Gilead attributed the decline to a 95% decrease in royalties from influenza drug Tamiflu oseltamivir from Roche (SIX:ROG; OTCQX:RHHBY) resulting from a worldwide decline in pandemic planning initiatives. Combined sales of Gilead's antiviral products rose 2% to $1.6 billion in 1Q11. Gilead reiterated 2011 net product sales guidance of $7.9-$8.1 billion. ...