Gilead Sciences Inc reported a second-quarter net loss on Tuesday after the market close, as revenue growth driven by higher HIV product sales was offset by significant new research and development expenses tied to recent acquisitions.

The biopharmaceutical company posted a loss of $10.5 billion, or $8.45 per share, for the quarter, compared to a profit of $1.96 billion, or $1.56 per share, in the same period last year. On an adjusted basis, excluding certain one-time items, Gilead reported a loss of $6.75 per share. Analysts polled by FactSet had anticipated a larger adjusted loss of $7.26 per share.

The company stated that both the reported and adjusted losses include a $9.08 per share impact primarily from R&D expenditures related to the acquisitions of Arcellx, Tubulis GmbH, and Ouro Medicines.

Revenue increased to $7.8 billion from $7.08 billion, surpassing analyst expectations of $7.4 billion. Gilead attributed the revenue growth chiefly to a 12% rise in HIV product sales, which reached $5.69 billion. The company also noted that liver disease drug sales grew 10% to $877 million, and breast cancer therapy Trodelvy contributed with a 26% increase to $457 million.

Gilead reported that sales of its COVID-19 treatment, Veklury, fell 81% to $23 million in the quarter, driven by lower hospitalization rates for the virus. The company has revised its full-year Veklury sales forecast downward to approximately $300 million, from a prior expectation of about $600 million.

For the full year, Gilead narrowed its total product sales guidance range to $30.1 billion to $30.4 billion, raising the lower end from a previous $30.0 billion. This forecast includes the anticipated sales of Veklury. The company projects a full-year adjusted loss per share of between $0.30 and $0.65, an improvement from its prior guidance of a loss of $0.65 to $1.05 per share. Analysts currently expect a full-year adjusted loss per share of $0.75 on product sales of $30.23 billion.