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Biotech - Gilead Sciences could see fireworks after earnings announced tonight... read more
00:00, 22 April 2014
Gilead Sciences are expected to show Q1 profits of $0.89 per share on revenue of $3.92bn. The company will be looking to convince investors that the political pressure on drug pricing from the company's hepatitis C drug Sovaldi is not impacting earnings. The likelihood is that earnings to date will be good, but probably more important for the stock price going forward will be any guidance on the future pricing structure of Sovaldi and other product lines. Without assurance that companies in the sector can continue to charge similar prices, biotech may well remain under pressure despite beating earnings expectations.