Gilead prices virus drug at US$3,120 per patient for six vialsWorld | 29 Jun 2020 10:22 pm
Gilead Sciences disclosed its pricing for the coronavirus drug remdesivir saying it will charge US$3,120 for patients with private health insurance, CBS News reports.
This would be per patient for a treatment course of six vials.
Patients who are covered by government programs like Medicaid will be charged US$2,340 for a typical treatment course.
Reuters reported that analysts at Royal Bank of Canada said they saw revenue potential of US$2.3 billion from the drug in 2020, helping offset more than US$1 billion in development and distribution costs.
Still, the potential to lift Gilead shares was limited because vaccines and better treatments were on the horizon longer term, they added.
Gilead has entered into an agreement with the U.S. Department of Health and Human Services (HHS), with the agency and states set to manage allocation to hospitals until the end of September.
Gilead has linked up with generic drugmakers based in India and Pakistan, including Cipla Ltd and Hetero Labs Ltd, to make and supply remdesivir in 127 developing countries.
Cipla's version is priced at less than 5,000 Indian rupees (US$66.24), while Hetero Lab's version is priced at 5,400 rupees.
The amount that patients pay out of pocket depends on insurance, income and other factors. "We're in uncharted territory with pricing a new medicine, a novel medicine, in a pandemic," Gilead Chief Executive Dan O'Day said in a statement announcing the pricing for remdesivir.
Remdesivir is an antiviral medication originally developed to treat Ebola and other deadly viruses. After an international coronavirus drug trial showed that the medication helped some patients recover more quickly, the Food and Drug Administration gave the remdesivir authorization for emergency use in treating virus patients. Gilead is charging two prices for the drug in just one developed country: the U.S., according to The Wall Street Journal.