Gilead Sciences Inc. said it will charge the U.S. government and other industrialized countries $390 per vial for its viral-fighting drug remdesivir, or about $2,340 for a typical five-day course of treatment.
Gilead stated in a statement Monday it would offer this cost to developed nations around the world, in order to produce a one-price model that would avoid the need for country-by-country settlements that might decrease access.
“We wanted to make sure that nothing gets in the way of remdesivir getting to patients,” Gilead Chief Executive Officer Daniel O’Day said in an interview. The price “will make sure all patients around the world have access to this medicine.”
The $390 per vial rate is for federal government entities. As soon as supply is less tight and Gilead starts selling the drug in typical distribution channels, the market price for private insurance provider and other commercial payers in the U.S. will be $520 a vial, or $3,120 for a five-day treament.
Remdesivir is one of the first commonly used drugs for Cov***9. It received an emergency use authorization from U.S. regulators in May, after a huge trial discovered the medicine sped healing by about 4 days in hospitalized patients. Hundreds of treatments and vaccines are in development around the globe as researchers race to discover methods to stop a worldwide pandemic that’s contaminated over 10 million individuals and eliminated more than 500,000.
Gilead had guaranteed to contribute its supply of the drug through June, however what the company would charge after the donation goes out has been furiously disputed. The drugmaker’s rates decision is consequential since it sets a precedent for how much future medicines for Co**** might cost.
The company recommended that it might have charged more based on the worth the medicine provides, the normal approach drugmakers use in setting prices for new and ingenious therapies. It argued remdesivir might cost $12,000 per patient by getting individuals out of the medical facility faster. But it went with a lower rate in order to ensure that all industrialized nations might manage it.
Shares of the Foster City, California-based drugmaker increased 1.6% to $75.75 in premarket trading Monday in New York. Through Friday, Gilead shares had actually increased 15% so far this year.
Gilead also said Monday it reached agreement with the Department of Health and Human Services to handle the allocation of remdesivir in the U.S. through September.