Drugmaker Gilead's earnings could move markets

NEW YORK — A former biotech highflier. A hot new drug with a big price tag and huge earnings potential. And a must-see earnings report.

It's Gilead Sciences, the drugmaker with the high-profile, blockbuster hepatitis C drug Sovaldi that's been in the news for its high price.

Gilead reports its first-quarter results after the bell Tuesday. How profitable the company and Sovaldi actually are, and what CEO John Martin says about Sovaldi's upside and pricing controversy could move markets.

Gilead has been at the center of the correction in pricey growth stocks. The stock, which has nearly doubled in the past two years, headed south in a hurry on March 21, after news broke that high-ranking members of Congress sent a letter to its CEO in response to reports that Gilead was selling Sovaldi at a cost of $84,000 per treatment, which was getting pushback from insurers.

That letter seemed to spark an exit from biotech shares, including Gilead, which saw its shares dip 22% from its Feb. 25 closing high of $83.95 to its April 10 closing low of $65.48. The stock has rebounded 9.3%, closing Monday at $71.60.

Analysts polled by Thomson Reuters expect earnings of 83 cents per share, more than double the 31 cents from a year ago. The big driver is Sovaldi, which RBC Capital Markets' says could bring in revenue of $1.4 billion to $2 billion in the first quarter, putting it on track for one of the quickest drugs to earn $1 billion.