Gilead's $2,340 price for coronavirus drug draws criticism

  • Gilead's $2,340 price for coronavirus drug draws criticism

Gilead's $2,340 price for coronavirus drug draws criticism

It will charge the United States government and other developed countries $390 per vial, or about $2,340 for a typical five-day course of treatment. Experts have said Gilead would need to avoid appearing to take advantage of a health crisis for profits.

Now the finalized price is "a responsible decision from Gilead and a promising sign for pricing decisions of other treatments for COVID-19 on the horizon", ICER's president, Steven D. Pearson, said in a Monday statement. "We priced it at the value, at the price that allows for access across the developed world".

The per-vial price outside of private insurance will be $390, Gilead added.

Because of those data, clinicians are viewing dexamethasone as the standard of care of COVID-19, with remdesivir merely an "adjunct" to it, ICER suggested.

O'Day added that remdesivir's pricing has been a "topic that has attracted more speculation than any other" since USA regulators approved its emergency use in some COVID-19 patients in May. Hundreds of treatments and vaccines are in development around the globe as researchers race to find ways to halt a global pandemic that's infected over 10 million people and killed more than 500,000. After this period, once supplies are less constrained, HHS will no longer manage allocation, the company said.

Gilead Sciences announced pricing plans for its coronavirus-fighting drug remdesivir.

O'Day said that shortening hospitalisation saves about US$12,000 ($17,500) per patient. That is a 33% increase over the $390 per vial Gilead said it will charge governments of developed countries and United States patients in government healthcare programs.

GILD Price Action: Gilead shares were up 1.42% at $75.63 at the time of publication Monday.

Gilead also said Monday it had reached agreement with the Department of Health and Human Services to manage the allocation of remdesivir in the USA through September.

"In the US, while new cases are rising, they are not resulting in hospitalization at rates seen in the first half". States such as Texas, Arizona and Florida are becoming overwhelmed, and plans to reopen their economies are being reversed. With the cost of goods sold unknown and variability in how many patients will be treated in the second half of the year, Karnauskas's base case reduces Gilead's stock value by about $3 a share. Other advocates, including consumer-rights group Public Citizen, have said the drug should just cost $1 a day based on calculations that it could be manufactured at scale by generic drugmakers for this amount.

During a Monday interview with CNBC's "Squawk Box", O'Day pointed to those second wave of clinical development investments as part of Gilead's "dual responsibility" alongside access. "At the current price of $390 per vial, remdesivir is positioned to achieve the aim of providing immediate net savings for healthcare systems".

"While we don't pretend to be pricing experts, this range seems reasonable considering that the value of early discharge is $12,000 per the USA government (which could be increased based on the average four-day shortening of stay) and that Gilead is spending $1 billion on manufacturing by year-end". By the end of the year, it expects to produce around 2 million treatment courses.

"The price puts to rest any notion that drug companies will "do the right thing" because it is a pandemic", Dr Peter Bach, a health policy expert at Memorial Sloan Kettering Cancer Center in NY said in an email. On the one hand, a pandemic is raging for which there is no cure.