Gilead Finally Reveals Remdesivir Pricing After Weeks Of Speculation

TOPLINE: Gilead Sciences on Monday released its pricing plan for redelivering, its coronavirus drug that was the primary treatment to point out leads to shortening the duration of the disease, after weeks of speculation and debate over how the pharma giant should balance the drug’s potential significance to public health with its own profits and responsibilities to shareholders.

one vial of the drug remdesivir.- pool/AFP VIA GETTY IMAGES


KEY FACTS

  • In a statement on Monday, Gilead said it'll charge governments within the developed world—including programs like Medicare within the U.S.—$2,340 for a typical five-day treatment course, or $390 per vial for 6 vials.
  • Private insurance companies within u. s. pays more: $3,120 for a typical course of treatment, or $520 per vial.
  • Countries within the developing world, where Gilead has licensed the drug to generic manufacturers, can pay significantly less.
  • Gilead estimates that the drug will reduce hospital costs by $12,000 per patient supported data showing that Covid-19 patients taking remdesivir were discharged from the hospital four days before those undergoing a custom treatment plan.
  • Given those results, Gilead said its pricing plan is “well below” the drug’s value.
  • In May, Gilead donated its entire remdesivir stockpile of 1.5 million doses to the U.S. government to allocate on an as-needed basis through the tip of June.
  • Gilead will begin charging for redelivering in July, CNBC reports.

Crucial quote

“Remdesivir, our investigational treatment, is that the first antiviral to possess demonstrated patient improvement in clinical trials for Covid-19, and there's no playbook for a way to cost a replacement medicine in a very pandemic,” Gilead CEO Daniel O’Day wrote in a letter on Monday. O’Day said decisions overpricing came with “significant responsibility.”

Big number


2.7%. That’s what proportion shares of Gilead jumped on Monday’s news in premarket trading.

Key background

Remdesivir was authorized for emergency use by the Food and Drug Administration in May after the drug showed promising results in early clinical trials. That authorization is temporary, however, and doesn't mean that the drug has been officially approved by the FDA. the traditional approval process can take years. While trial data from a National Institute of Allergy and Infectious Diseases study has shown that remdesivir shortens recovery times in some patients, another study from China found no statistically significant improvement in recovery time.