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Gilead shares slump after bleak sales forecast for Hep C drugs
February 8, 2017 / 3:39 PM / 7 months ago

Gilead shares slump after bleak sales forecast for Hep C drugs

Feb 8 (Reuters) - Shares of Gilead Sciences Inc fell as much as 10 percent to touch a near three-year low on Wednesday, a day after the drugmaker forecast disappointing sales for its hepatitis C drugs this year.

The company forecast 2017 hepatitis C drug sales of $7.5 billion-$9 billion, much lower than the $12 billion Wall Street analysts had expected, due to fewer patients starting on treatments and increased competition.

Gilead’s hepatitis C drugs Sovaldi and Harvoni revolutionized treatment of the serious liver disease, helping triple the company’s sales to nearly $33 billion in 2015 from 2013.

At least 11 brokerages cut their price targets on Gilead.

“Management reiterated a commitment to growth, but also acknowledged this would be challenging in the near term barring an acquisition,” Goldman Sachs analysts wrote in a note.

Gilead’s shares were down 9.5 percent at $66.18 on Wednesday. The stock was the biggest drag on the S&P 500 Index . (Reporting by Ankur Banerjee in Bengaluru; Editing by Saumyadeb Chakrabarty)

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