Gilead Sciences Expects License Transaction With Compugen To Reduce Its GAAP And Non-GAAP 2023 EPS By Approximately $0.03 - $0.05
Portfolio Pulse from Benzinga Newsdesk
Gilead Sciences anticipates a reduction in both GAAP and non-GAAP 2023 EPS by about $0.03 - $0.05 due to a license transaction with Compugen. Starting in Q1 2022, Gilead has aligned with SEC guidelines and includes acquired IPR&D expenses in its non-GAAP financial measures.
December 19, 2023 | 12:09 pm
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Gilead Sciences expects a minor decrease in 2023 EPS due to a licensing agreement with Compugen, which will impact both GAAP and non-GAAP earnings.
The expected reduction in EPS, although minor, is likely to be viewed negatively by investors in the short term, as it directly affects profitability. The alignment with SEC guidelines to include IPR&D costs may also be seen as increased transparency in financial reporting.
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Compugen is involved in a licensing deal with Gilead Sciences, which is expected to reduce Gilead's EPS. The financial impact on Compugen is not detailed in the article.
While the deal with Gilead could be seen as a positive development for Compugen, the lack of financial details regarding its impact on Compugen's earnings makes it difficult to predict the short-term stock movement.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50