Gilead Posts Net Loss; Chiron Reports Profit

Gilead Sciences Inc. reported a first-quarter loss Wednesday as charges related to an acquisition swamped better-than-expected sales of its HIV drug Viread.

Meanwhile, another biotech company, Chiron Corp. of Emeryville, Calif., said it swung to a profit in the first quarter on higher sales of its blood-testing equipment.

Gilead, based in Foster City, Calif., reported a net loss of $438.1 million, or $2.21 a share, compared with a loss of $3.9 million, or 2 cents, in the same period a year ago.

Excluding a $488.6-million one-time charge stemming from its January acquisition of rival Triangle Pharmaceuticals Inc., Gilead earned $50.5 million in the quarter, or 24 cents a share, beating analyst estimates of 15 cents compiled by Thomson First Call.

Gilead’s first-quarter revenue rose to $165.1 million from $78.4 million a year earlier, as investors drove Gilead’s shares to a 52-week high of $46, before closing at $45.65, up $1.18, in Nasdaq trading. The company’s results came after the market closed.

Sales of Viread, a once-a-day medication for HIV, climbed to $107.3 million from $27.2 million in the same quarter last year. Gilead forecast 2003 sales for the drug of $475 million to $500 million, up from an earlier estimate of $425 million to $475 million. Gilead said Viread accounts for 17% of sales in its class of HIV medications.

“Viread is penetrating the market a lot faster than many people expected,” said Thomas J. Dietz, an analyst for Pacific Growth Equities. The drug should easily hit its sales targets, he said, despite pricing pressure in Europe.

Meanwhile, Chiron said profit rose to $62.5 million, or 33 cents a share, contrasted with a loss of $18.9 million, or 10 cents, in the same quarter a year ago.

Revenue for Chiron rose 27% to $321 million from $252.2 million.

Chiron’s shares rose 74 cents to $41.22 on Nasdaq. The company released its results after the market closed.