Shares of biotech company Gilead dropped 4% after-hours Tuesday after revealing disappointing guidance for 2017.
The company, known for its HIV and hepatitis C drugs, posted lower fourth-quarter profits as fewer patients were treated with its pricey hepatitis C drugs. The company also said total product sales would be lower this year.
Gilead's earnings per share came in at $2.34, compared to analysts' estimates of $2.61.
Gilead is expecting its net product sales in 2017 to be between $22.5 and $24.5 billion in 2017. That's down from the $29.9 billion in product sales the company had in 2016.
Fourth-quarter net income fell to $3.1 billion from $4.7 billion a year earlier. Adjusting for one-time items, Gilead said it earned $2.70 per share in the quarter, compared with $3.32 per share a year earlier.
Quarterly sales of hepatitis C drugs Sovaldi, Harvoni, and Epclusa totaled $3.2 billion, compared with $4.9 billion a year earlier. Wall Street analysts, on average, had forecast hepatitis C drug sales of $3.2 billion, according to a poll by Evercore ISI.
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