Gilean Pharmaceuticals is getting another dose of life back, after a disappointing year.
The drugmaker reported fourth-quarter profit of $2.05 per share, beating analysts’ estimates of $1.88 per share.
Gileas stock jumped nearly 6% to $37.50 per share after the earnings.
Analysts had forecast earnings of $3.05 to $3,11 per share for the quarter.
“We have a lot of good news to report, especially given our recent earnings announcement,” CEO John D. Gipson said in a statement.
Gifreel Capital Markets analyst Craig Rucker said Gileads performance is good news for investors.
“While this quarter’s results may have been disappointing, the company’s stock price continues to gain momentum as it prepares for the launch of its new drug for the treatment of high blood pressure and type 2 diabetes,” Rucker wrote.
The company’s chief financial officer said the company plans to continue focusing on its focus on drug development and expansion.
The deal with the government of Mexico provides a major boost for Gileadin’s revenue.
The $15 billion deal was announced in December.
The Mexican government will receive a 5% stake in Gileady.
Gildan is also working with an investment bank to explore a partnership with Pfizer to sell a small number of its patents.
The Pfizer deal is not expected to be completed before the end of the year.
Analyzing Gilden’s earnings results, Rucker noted that Gileader is the company with the most growth.
“Its share price has grown from around $18 per share in 2012 to around $38 per share this year,” Ruck said.
“The stock has been gaining momentum, which makes it a good buy.”
Gileadais market capitalization is more than $9 billion.
The stock closed up about 5% on Wednesday.
The new deal will be Gileadeys biggest acquisition since the merger between Gilea and Roche in 2013.