Gilead Shares Drop As Drug Maker Cuts Product Sales Outlook

Shares of Gilead Sciences Inc. declined in Monday's extended session after the biopharmaceutical company lowered its 2016 outlook on product sales despite turning in better-than-expected quarterly earnings. Gilead reported its second-quarter earnings fell to $3.5 billion, or $2.58 a share, from $4.49 billion, or $2.92 a share, a year earlier. Excluding charges and other items, Gilead would have earned $3.08 a share. Revenue decreased to $7.78 billion from $8.24 billion. Analysts surveyed by FactSet had forecast adjusted earnings of $3.02 a share on revenue of $7.77 billion. Sales of its hepatitis C drugs Sovaldi and Harvoni shrank to $4 billion versus $4.9 billion in the same quarter last year, prompting the drug company to cut its 2016 net product sales forecast to a range of $30.5 billion to $29.5 billion from $31 billion to $30 billion previously. Gilead dropped 3.2% after hours.