Gilead Sciences Soars On "Striking" Clinical Trial Data

On Thursday after the closing bell, Gilead Sciences (NASDAQ: GILD) released its Q4 earnings results. While the biotech giant missed analysts earnings estimates, sales numbers for the quarter came in slightly higher than projected. More importantly, Gilead management announced positive clinical data about a hepatitis C drug which the company acquired in its $10.8 billion takeover of Pharmasset. J.P. Morgan (NYSE: JPM) analysts are calling the newly released data "striking" and analysts across Wall Street are getting even more bullish on the name in light of the new information. On the earnings front, GILD posted non-GAAP income of $743 million or $0.95 per share, versus $779.3 million or $0.97 per share, in the year ago period. This compared to analysts' consensus EPS estimates of $1.05. Revenues for the fourth quarter were up 10% to $2.20 billion compared to $2 billion last year. This came in slightly ahead of Street consensus revenue estimates of $2.18 billion. While the miss on the bottom line and only very slight beat on the top line could be viewed as mildly disappointing, traders are focusing on some very positive clinical data which Gilead discussed on its conference call. On the call with analysts and investors, Gilead's chief scientific officer, Norbert Bischofberger, said that patients with genotype 1 hepatitis C, which is the most common form of the disease in North America, had no detectable signs of the virus after four weeks on a drug called PSI-7977 which was acquired in Gilead's buyout of Pharmasset. The drug previously was shown to cure all patients ...

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