Gilead sets U.S. price for Covid-19 drug remdesivir at $3,120 for typical treatment

CNBC's Meg Tirrell breaks down how Gilead decided on its pricing for its coronavirus drug remdesivir.

Gilead Sciences announced Monday the much-anticipated pricing for its coronavirus treatment remdesivir, saying it will cost hospitals $3,120 for a typical U.S. patient with commercial insurance.

The company announced its pricing plans in preparation for it to begin charging for the antiviral drug in July. The company has been donating doses to the U.S. government for distribution since it received emergency use authorization in May.

The drugmaker said it will sell remdesivir for $390 per vial to governments “of developed countries” around the world, and the price for U.S. private insurance companies will stand at $520 per vial. In the U.S., that means Gilead will charge a lower price for government programs like Medicare and a higher price for private insurers.

“Whether you’re covered by a private insurer, whether you’re covered by a government insurer, whether you’re uninsured with Covid-19, there will not be an issue for access with remdesivir,” Gilead CEO Daniel O’Day said in an interview Monday with CNBC’s Meg Tirrell on “Squawk Box” after the announcement.

Uninsured individuals will be covered under provisions of the CARES Act, a senior official in the Department of Health and Human Services said on a conference call with reporters Monday. For privately insured people, out-of-pocket costs will be determined by individual insurance plans, the official added.

Every drug in the U.S. has two list prices due to the country’s health-care system, O’Day told CNBC, adding that he stands by the pricing structure and that it will ensure access for those who need it. Its government price of $390 per vial was determined based on developed countries with the lowest purchasing power, O’Day said, in order to avoid negotiations with each country that could slow down access to the drug.

The company said it has entered into agreements with generic manufacturers to provide the drug at a “substantially lower cost” in developing countries.

Shares of Gilead were up more than 1% in late-morning trading Monday.

The majority of patients treated with remdesivir will receive a five-day treatment course using six vials of remdesivir, the company said. That would bring the government cost to $2,340 for patients on the five-day treatment and $3,120 for patients through commercial insurance.

The longer, 10-day treatment course, which uses an average of about 11 vials, will cost governments $4,290 per patient and $5,720 for a U.S. patient with private insurance.

While there are still no Covid-19 treatments approved by the Food and Drug Administration, scientists have found some success in shortening the recovery time of severely ill patients by using remdesivir. Given the potential to reduce costs for hospitals and to save lives, Gilead said its price of $390 per vial is “well below” the drug’s value.

“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,” O’Day wrote in an open letter.

Use of the drug will help hospitals save about $12,000 per patient due to earlier hospital discharge, the company said. In April, the National Institute of Allergy and Infectious Diseases released results from its study that showed Covid-19 patients who took remdesivir usually recovered about four days faster than those who didn’t take the drug.

It has taken nearly two months for the company to announce a price for remdesivir since it received emergency authorization from the FDA to treat Covid-19 patients. In his open letter, O’Day said the pricing decision carried “significant responsibility” as it is the first antiviral drug shown to effectively treat Covid-19 in a major clinical trial.

Before Monday, the price of the drug had been hotly debated by doctors, health insurers and investors as it could set the bar for other drugs that later prove to effectively treat the disease.

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Kaugnay na balita:

100+ komento:

Cannerbernerd
Cannerbernerd:
Interesting that it costs more than the stimulus we received.
Buddy Piper
Buddy Piper:
That remdesivir price makes meth and heroin dealers seem like nice people.
Anand Kumar
Anand Kumar:
In India this cost $80. Gilead want to take advantage of this pendamic and US government is silent on this issue.
Christian Andrews
Christian Andrews:
Because big pharmaceutical lobbied and bought off our politicians
Carlos Estes
Carlos Estes:
The polio vaccine was free .
niurkaguzman48
niurkaguzman48:
there should be riots at gilead.
Alk paz
Alk paz:
3K for something that will help you weather COVID if in ICU. Nice. How much will a vaccine cost? 150K?
Wigbert Lui
Wigbert Lui:
Corrupted. This is not even a vaccine.
landar486
landar486:
price gouging out the gate.
Riverflyswatter S
Riverflyswatter S:
She said that how the US discount pricing works. Paraphrase “ that’s what corruption does to US citizens!”
Kris Fisher
Kris Fisher:
This only a treatment, not a vaccine. Price goudging is illegal.
CherubiJubell
CherubiJubell:
This is a global pandemic.
...but I guess we're still going to juice people.
2NDARY B18C1
2NDARY B18C1:
WE SHOULDN'T BE CHARGE FOR ANY KIND OF PANDEMICS FEES...COME ON NOW
T Hands
T Hands:
Science should not be led by Wall-street. How can you even trust what’s in the drug when Gilead is this corrupt
Fizz-X
Fizz-X:
This is the reason medicine shouldnt be a business.
LotWizzard
LotWizzard:
greedy demons
Papa Joe White
Papa Joe White:
Ho w about we march in and take it.
Ali Zaidi
Ali Zaidi:
Well who remembers a guy name Bernie Sanders.
Darryl Hamlin
Darryl Hamlin:
Gilead is KNOWN for price gouging so people are really surprised by this?
Ian h
Ian h:
Gt your torches and pitcforks boys Gileads gonna find out how we feel about them charging triple our stimulus for a treatment
Khan Industries
Khan Industries:
Remember, price gouging is bad! Unless you're part of the Healthcare system apparently.
yos angle
yos angle:
Indian generic company is selling exact same drug vial for 71$ , and giving them away at even more subsidized rate to other poor countries. But CNBC will always show india in negative image 😂👌
Airbrushkid
Airbrushkid:
Crooks!
donkdat
donkdat:
There won't be a vaccine for a long time now that there is "treatment " there is no money in curing only treating
Ryan w
Ryan w:
"They argued that this is quite a discount."
RockingChode
RockingChode:
Time to ransack Gilead I guess 🤷🏻‍♂️
Mark Portnoy
Mark Portnoy:
A screaming ad for single-payer healthcare.
Steve Tanai
Steve Tanai:
Send in the " peaceful" protestors to the HQ.
David Roberts
David Roberts:
So, how does the drug discounting system work in the U.S.A? Just charge them 50% more than anyone else?
Amaru the Shining One
Amaru the Shining One:
Hmmm, interesting. I was wondering how long it would be before the drug companies start working on their profits... disgusting.
You all need to know what is REALLY going on:
Operation lockstep 👈🏾
Event 201👈🏾👈🏾
ID2020 alliance 👈🏾👈🏾👈🏾
I share because I love you ❤️
Francine S
Francine S:
Reminds me of the movie “V for Vendetta” , a must see for our times!
Sara Cowgill
Sara Cowgill:
That’s the same as saying with an aspirin, you can work, so we can charge the daily wage for an aspirin. Hello. Logic check.
Alex Jensen
Alex Jensen:
Americans= I hate socialism and universal healthcare.
Americans = healthcare is expensive I can't afford it.
QMBY
QMBY:
"Raise eyebrows" = do nothing about it.
R.C.B.
R.C.B.:
Wait until you see the price for the vaccine
Vita Noble
Vita Noble:
Outrageous and devoid of ethics. Gilead Headquarters might well be the next place for protestors, making the BLM protests look like day in the park.
Gerzon Adiel
Gerzon Adiel:
"Is there no balm in GILEAD,
Is there no physician there?
Why then is there no recovery
For the health of the daughter of my people [Jeremiah 8:22]."
Wake up!
Austin butler
Austin butler:
Ima need a few more stimulus checks before I can afford that crap
antiphonyCurry raffinoseFrost
antiphonyCurry raffinoseFrost:
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Scot Mile
Scot Mile:
No thanks
Santiago Blanco
Santiago Blanco:
Drug discounting system? More like drug gouging plan.
dissociative cat
dissociative cat:
Once again the United States taxpayer pays for drug research and development cost
Jay Berman
Jay Berman:
"Why does it cost more in the U.S?" ... Typical CNBC bs, what an absolutely ridiculous question.

It's simple, ... Because they can.

One should always remember that their fiduciary responsibility mandates corporate policy whereby the primary consideration is profit/loss.

Recalling Michael Douglas in Wall Street, "Greed is good." Legality isn't a major consideration for global corporate behemoths.

Price gouging is rarely enforced with regards to many of the largest & most powerful economic sectors.

Big Pharma is one of the worst offenders to date.

I suspect this will unfortunately continue, despite public outcry. The current AG & his In-justice Dept. lackeys will make every effort to ignore it.
Gray Detwiler
Gray Detwiler:
....how We feeling about eating the rich y'all 👀
Waterboiii
Waterboiii:
Just smoke some weed lol
Purez Entity
Purez Entity:
Medical industry must be regulated, they all getting g out of control!!!
sixpackz
sixpackz:
expensive
B Vallejo
B Vallejo:
"Ten times the price should account for inflation." - Politics
jtcouch
jtcouch:
Early stage treatment is the key. See study below.
Samuel S
Samuel S:
I’ll just stick to dexamethazone
Ross Harris
Ross Harris:
Here is 1 reason Covid19 is a reality....$$"ka Cheennngg"$$$$????
Terry Ackerman
Terry Ackerman:
Big Pharma is a joke...
Renee Clay
Renee Clay:
Who can afford that medicine?????? What are the SIDE EFFECTS?????????? Gilead is a crook.
Matthew Mendoza
Matthew Mendoza:
They need to burn down their hq
richard chapman
richard chapman:
Remdesivir! Wow! And I thought those "CARPETBAGGERS" on Amazon are price gougers! Second thoughts!
Alberick Mendes
Alberick Mendes:
Money make machine starts rolling.
Nathan Rothkamm
Nathan Rothkamm:
The way they openly admit to how they price drugs....
Nike is going to start selling shoes based on how much they save you walking barefoot and the damage done to your body.
Imagine if all companies based there price off what they think you will benefit from it economically.
Wearing our shoes saves stepping on nails and rocks which saves money on hospital visits so therefore since a typical hospital visit would cost tens of thousands we are going to base our shoe price at $7,000.
Hey, without our shoes you would spend way more in the long run.....guess you kind of have to buy our shoes....
Nova superb
Nova superb:
This is a crime. Price gauging and opportunistic 🤯
KDrop
KDrop:
I hope the Stock goes the hell!
Travis Winward
Travis Winward:
And yet apparently we're the "greatest country in the world." I'm pretty sure that I can debate anybody on that with stories like this coming out. We are a pathetic greedy country. It's stupid stuff like this that will cause the downfall of the United States. After all we're already well on our way there.
server1
server1:
Come to Sweden. You will pay the $3000 even if you never get sick :)
ZyriaNa' AreNee
ZyriaNa' AreNee:
Be fair the price needs to be the same EVERYWHERE
Alberick Mendes
Alberick Mendes:
The Chinese should pay for ALL
Michael Lew
Michael Lew:
The US has bought almost all the world's upcoming supply of Covid-19 treatment drug remdesivir.
Trump's character is now America's character.....totally selfish care for himself, screw all the rest.

Best part based on reports remdesivir is not a cure although it improves condition for a small proportion of those who took this drug.
Punith S
Punith S:
It costs 75 dollars in India , which itself is way expensive for us
I can ship it to USA for 500 dollars :D
DJ Trevi
DJ Trevi:
What does the USA do, buy all of it and leave the rest of the nations with no stock
NuggetTato
NuggetTato:
Wow, the US is so greedy, im definitely leaving now, i dont care if the passport fee is 100 and something now
TurdsWill BeTurds
TurdsWill BeTurds:
That’s medical price gouging for you
Paul Lorenzini
Paul Lorenzini:
And the stock rises.........the rich get richer, the sick get poorer.
westward bound
westward bound:
Hey Meg ahhhhhh I'm trying to come up with large words. Ahh yeah do you think ahhhhhh
TheFangseeker
TheFangseeker:
Gilead like The Handmaid's Tale.
The Force
The Force:
It's as if they're charging us because the whole country is in the most debt in ever.
Jordan Melby Vlogs
Jordan Melby Vlogs:
That is why they don't want to give you the "cure" for cancer!
Vivek
Vivek:
Needs more context : how long is treatment course that 3k will buy ?
In india a 5 day course of remdesivir costs 400usd only !
Owl Percent
Owl Percent:
Price gouge much?
Dobrinka Panayotova
Dobrinka Panayotova:
Didn't know the new season of The Handmaid's tale was going to be in the reality genre
aarohazel
aarohazel:
I wouldn't even take it if they paid me $3k
4eva25
4eva25:
ridiculous!
teebone 21
teebone 21:
, why in the hell are they gouging the price?
ZGJ Finance
ZGJ Finance:
Sooo when we gonna talk about Medicare for all..?
Brian Griffin. Peter Griffin
Brian Griffin. Peter Griffin:
Will they refund the money if the patient die after receiving the treatment??? 🤬🤬🤬
SunTitan 44
SunTitan 44:
Drug company we could be ripping you off worse gee thanks just three thousand dollars
Running On Coffee
Running On Coffee:
No thank you
jamie hare
jamie hare:
Meds should not cost more here than anywhere else, Big Pharma needs retired.
Balls
Balls:
Hmm?? Hep-C type of drug .. Price gouging.!
Judy
Judy:
Probably costs them $5.00 for production.
chat box's
chat box's:
They need to settle with me I'm dying of bones disease I'm a Christian an I love God an America
Jordan Melby Vlogs
Jordan Melby Vlogs:
And the sheep will buy it... 🤣🤣🤣
Ross Harris
Ross Harris:
Romans 13:10 Love works no harm to it's neighbor...it should be given out for "free" Matthew 7:12
K
K:
They better make the vaccine cost nearly free.
Renaissance Man
Renaissance Man:
So expect a $31,200 bill from the hospital AFTER your health insurance coverage.
John Lee
John Lee:
It'll still save money compared to spending 2x as long in a hospital bed.
Janet Lowe
Janet Lowe:
I'm not taking it
Mark Greenhowe
Mark Greenhowe:
Hahaha - it’s free in the UK
charles h
charles h:
That’s funny cause I know 70% or more people can’t come close to affording that right now
TheGrandOdogaronGamer
TheGrandOdogaronGamer:
Do they really expect us to pay this much for a "cure" for this literal apocalyptic virus?
Manu nair
Manu nair:
generic version of remdesivir cost only $71 for 100 milligram vial
pewpeat
pewpeat:
so someone make a generic
Reg M
Reg M:
In line with what other biopharma companies charge for their “exclusive” drugs. Not shocked one bit. Capital hill really needs to change the laws on drug patents.
Nicoleta Serban
Nicoleta Serban:
Will this bring stocks back up? Hope so