Gilead to discount its pricey Sovaldi drug

LOS ANGELES (MarketWatch)—The future appeared golden when Gilead Sciences Inc. reported its results Tuesday, with earnings per share blowing past forecasts and revenue beating estimates by more than half a billion dollars.

So why was Gilead’s GILD, -7.92%  stock down by double digits at one point Wednesday morning? The main driver of those results, the hit hepatitis C drug Sovaldi, will come down in price, the company says.

Gilead will begin offering discounts and rebates of up to 46% this year for the $1,000-a-day pill to insurers and others who pay for health care expenses, now that rivals like AbbVie Inc. ABBV, -6.73%  and Merck & Co. Inc. MRK, -2.90%  are entering the market.