By Glory Jun, 29, 2020 Private

Gilead Science Remdesivir coronavirus treatment cost. 

Keynote:

• Patients treated under government programs will pay $2,340
• Patients with private insurance will pay $3,120

A couple of months ago, Gilead Sciences joined in the race to develop a Covid-19 treatment. After a series of clinical phase trials, Gilead is set to start remdesivir treatments in July 2020. On Monday, the company announced its pricing plans ahead of when treatments will commence. The drugmaker says it will sell the remdesivir treatment for $390 per vial to governments of “developed” countries, and $520 per vial to private insurance companies in the U.S. That means, the price for government programs like Medicare will be lower than that of private insurance companies in the U.S.

Since Gilead received emergency use authorization in May, it has been donating doses to the United States government for distribution ever since. Gilead was also the first company to get an emergency use authorization for the treatment of Covid-19 by the United States government.

The above-mentioned prices are what Gilead will charge per vial. According to the company, the average coronavirus patient will need a five-day treatment course, using six vials of remdesivir treatment. Therefore, patients treated under government programs will pay $2,340 for the treatment, while patients with private insurance will pay $3,120.

In response to discussions to lower the drug’s price for hospitals and to save lives, Gilead said reducing the cost to $390 per vial is far below the drug’s actual value. Institute for Clinical and Economic Review, a drug pricing watchdog, forecast remdesivir’s drug to be far above what its current price is for the U.S. The forecast was done at the beginning of May after the institute found that there was a possibility of the remdesivir treatment to cost $4,500 to be cost-effective. 

“At the level we have priced remdesivir and with government programs in place, along with additional Gilead assistance as needed, we believe all patients will have access,” said Gilead’s CEO Daniel O’Day in an open letter.

In the open letter, O’Day explained the reason behind the price differences. He said it was because of how the U.S system is set up, as well as the expected discounts by government payers of other countries. 

 “Part of the intent behind our decision was to remove the need for the country by country negotiations on price. We discounted the price to a level that is affordable for developed countries with the lowest purchasing power. This price will be offered to all governments in developed countries around the world where remdesivir is approved or authorized for use.”

The Food and Drug Administration is yet to formally approve any drug as reliable Covid-19 treatment. However, some scientists approve of the use of remdesivir to hasten the recovery time of severe Covid-19 patients.  

Shares of Gilead were up 2.8% in pre-market trading on Nasdaq after the news was made public. 

Tags: Gilead Science GILD coronavirus Covid-19

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