Gilead Sciences unveiled the cost of its five-day coronavirus treatment.
On Monday, Gilead Chairman and CEO Daniel O’Day penned an open letter outlining the costs for remdesivir treatments.
The cost will be $2,340 per COVID-19 patient for Medicare and “governments of developed countries,” which equates to approximately $390 per vial. However, a U.S. patient with private health insurance will be charged $3,120 — an estimated minimum of $520 per vial — or up to $5,720 per patient for a longer duration.
However, O’Day insists the prices actually below market value in an effort to offer “broad and equitable access.”
“As with many other aspects of this pandemic, we are in uncharted territory in pricing remdesivir,” O’Day wrote. “Ultimately, we were guided by the need to do things differently.”
He continued, “As the world continues to reel from the human, social and economic impact of this pandemic, we believe that pricing remdesivir well below value is the right and responsible thing to do.”
We announced the price today for our investigational antiviral for the treatment of COVID-19. We believe our unique approach will provide broad and equitable access. Read more from our Chairman & CEO: https://t.co/rrEbrDxrLk. pic.twitter.com/9ElSExqSU3
— Gilead Sciences (@GileadSciences) June 29, 2020
In the letter, O’Day also confirmed that the company had entered into various agreements with drug manufacturers capable of producing generic forms of the drug in developing countries. The company expects to begin charging in July.
Gilead’s announcement about remdesivir comes amid doctors’ and medical experts’ scrutiny of the drug.
While the cost outlined covers five days of treatment, a medical publication previously noted that remdesivir reduced recovery time by an average of four days based on a 10-day course of remdesivir.
Multiple doctors and medical experts have also echoed similar sentiments expressing concern about the cost compared to the benefit and the results of healthcare as a big business.
Some have also argued that clinical studies have not yet indicated whether or not there is even a mortality benefit that can justify the cost.
“Gilead Sciences charging $2,340 for a 5-day course of Remdesivir that maybe reduces time to recovery, doesn’t improve survival,” Dr. Eugene Gu tweeted, adding, “And is likely inferior to the much cheaper dexamethasone for ventilated patients reveals Big Pharma’s greed and opportunism during this pandemic.”
Gilead Sciences charging $2,340 for a 5-day course of Remdesivir that maybe reduces time to recovery, doesn’t improve survival, and is likely inferior to the much cheaper dexamethasone for ventilated patients reveals Big Pharma’s greed and opportunism during this pandemic.
— Eugene Gu, MD (@eugenegu) June 29, 2020
Remdesivir price is out now. As I suspected, it’s not cheap
— James Todaro, MD (@JamesTodaroMD) June 29, 2020
Gilead is charging hospitals between $3,120 and $5,720 per patient
Payment will begin in July, likely in anticipation of making a profit in the second wave of COVID-19
Lot of money for a drug w/ no mortality benefit. https://t.co/DsPvNc4NBx
Gilead receives $37.5M grant to develop/test Remdesivir—courtesy of US taxpayers
— James Todaro, MD (@JamesTodaroMD) May 4, 2020
Taxpayer funded study shows small non-mortality benefit…FDA approves Remdesivir
Patient cost: $1000
Remdesivir manufacture cost: $10
Gilead projected 2020 revenue for Remdesivir: $1,000,000,000
Despite mounting concerns about the drug as a coronavirus treatment, Dr. Anthony Fauci touted the drug previously as he insisted it shows promise.