Liver pill maker rakes in sales

CVS Caremark Corp., the second-biggest pharmacy manager, has said it might try to slow down the use of the drug.

About 30,000 patients have started on the medicine, company executives said on the call. Some of the sales came from distributors building inventory, Gilead said.

Analysts are predicting Sovaldi will generate about $12 billion in sales in 2017.

"There's no doubt this is a tremendously impressive drug launch," Marshall Gordon, an investor with ClearBridge Investments L.L.C., said in a telephone interview. "But everybody knows that, and there's limited visibility on the sustainability of it."

Gilead will use the cash it generates from hepatitis C to accelerate share buybacks, and it won't rush to acquire companies or new drugs, company executives said.

"Just because we have more money available doesn't mean we're going to spend it," said Norbert Bischofberger, Gilead's head of research and development.

See also:

• Lawmakers: Why is that drug so expensive?
• Medicaid plans slow to cover $84,000-per-patient hepatitis C regimen
• New hepatitis drug costs $1,000 per pill