FOSTER CITY, Calif. (AP) -- HIV drug maker Gilead Sciences Inc. said Thursday its net income jumped 63 percent in the first quarter on lower costs and increased drug sales.
Gilead said sales of its two biggest-selling drugs, the HIV medicines Atripla and Truvada, both fell. But its total revenue increased because of stronger sales of other products, including other HIV drugs, its heart drug Letairis, angina treatment Ranexa, and growing sales of Stribild, a four-in-one HIV pill that was approved in August.
In the first quarter of 2012 Gilead acquired hepatitis C drug developer Pharmasset for $11.1 billion, and it took around $194 million in one-time charges related to the deal. In the process Gilead gained the promising experimental drug sofosbuvir and other products.
The hepatitis C virus can cause life-threatening liver damage and it is the main cause of liver transplants in the United States. Analysts expect it to become a bigger health problem as baby boomers age.
Gilead said its net income rose to $722.2 million, or 43 cents per share, from $442 million, or 28 cents per share. Excluding one-time items Gilead said it earned 48 cents per share in the latest quarter. Revenue rose 11 percent, to $2.53 billion from $2.28 billion.
Analysts were expecting net income of 50 cents per share and $2.58 billion in revenue, according to FactSet.
The company said revenue from Atripla fell 1 percent to $877.1 million and Truvada sales fell 8 percent to $700.2 million. Total antiviral drug sales rose 7 percent to $2.06 billion, however, as revenue from Viread and Complera improved. Revenue from the Stribild totaled $92.1 million.
Sales of Letairis sales rose 35 percent to $118.1 million and revenue from Ranexa increased 16 percent to $96.3 million.
Shares of Gilead Sciences rose $2.04, or 4.1 percent, to $52.18 on Thursday. The stock tacked on 12 cents to $52.30 in aftermarket trading following the release of the earnings report. Shares reached an all-time high of $55.16 on April 23.