Gilead Science releases pricing plan for COVID-19 drug Remdesivir

  • Gilead Science releases pricing plan for COVID-19 drug Remdesivir

Gilead Science releases pricing plan for COVID-19 drug Remdesivir

That is a 33% increase over the $390 per vial Gilead said it will charge governments of developed countries and USA patients in government healthcare programs.

The amount that each patient pays out of pocket depends on their insurance plan.

"There is no playbook for how to price a new medicine in a pandemic", O'Day said in the letter.

It has taken almost two months for Gilead to announce a price for the Covid-19 drug since it received emergency authorization from the Food and Drug Administration (FDA) to treat patients.

The price tag is slightly below the range of $2,520 to $2,800 suggested last week by US drug pricing research group the Institute for Clinical and Economic Review (ICER) after British researchers said they found that the cheap, widely available steroid dexamethasone significantly reduced mortality among severely ill COVID-19 patients. The price "will make sure all patients around the world have access to this medicine". "This price will be offered to all governments in developed countries around the world where remdesivir is approved or authorized for use", the company said. Gilead said that it will work the Department of Health and Human Services to manage the allocation of the drug to hospitals until the end of September.

He said in developing countries, "We have entered into agreements with generic manufacturers to deliver treatment at a substantially lower cost". Given through an IV, the medication is created to interfere with an enzyme that reproduces viral genetic material. In a USA government-led study, remdesivir shortened recovery time by 31 per cent - 11 days on average versus 15 days for those given just usual care. It had not improved survival according to preliminary results after two weeks of followup; results after four weeks are expected soon.

This is below the US$5,080 per course recommendation by USA drug pricing research group, the Institute for Clinical and Economic Review, last week.

A file photograph shows Gilead Sciences headquarters in Foster City, California. He said the drug will be given to states to distribute to hospitals in need.

"Remdesivir should be in the public domain" because the drug received at least US$70 million ($102 million) in public funding toward its development, he said. "The price might have been fine if the company had demonstrated that the treatment saved lives".

"We believe the disclosed remdesivir pricing is reasonable, and should provide significant value to the Gilead shareholders and still deflect much of the criticism the company might face in this emergency".

Shortly after the announcement, Peter Bach, MD, director of the Center for Health Policy and Outcomes at Memorial Sloan Kettering Cancer Center, tweeted that drugs are bought in bulk and not based on the insurance that future patients may have.

Gilead also said it remains focused on increasing supplies to meet the high global demand, and expects its investment in the antiviral therapy to exceed $1 billion by the end of the year.