In the world so far no vaccine is officially known to work against coronavirus; therefore Gilead Sciences‘ success in making the first COVID-19 treatment to work during clinical trials is a success. The drug can shorten the recovery period for patients suffering severely from coronavirus. The price for the coronavirus treatment drug however is sparking outrage.
The typical treatment plan that the national health programs cover in the US among other developed countries, charges its patients 2,340 dollars. For private insurance holders, the price is higher and charged at $3,120. This is a significant factor considering the amount a patient is going to pay from their wallet.
Most factors like insurance and income come into play when deducing how much it will cost a patient.
People who are not covered by health insurance will struggle to pay such a price if their sources of income are far few between. Other developed nations however will pay 25 percent less than what the United States will pay. This decision, says Gilead reflects their plan to make this drug as accessible as possible worldwide.
To make sure more and more people can use their treatment for the betterment of their health, the company is licensing the generic manufacturers who will provide the drug to developing countries. These countries will also enjoy a large decrease in cost so that they may be able to access the treatment.
It is a challenge to set a price for a drug with no substitute, especially in the middle of a pandemic, Gilead admits. The drug Remdesivir by Gilead sciences remains the only therapy the food and Drug Administration authorizes for COVID-19 patients as a treatment.
The government however sponsors the clinical trials for this drug and taxpayer dollars to fund its development. This is a fact that fuels the outrage on the pricing of the drug.
The price of the drug came under serious criticism and people pointed out the number of taxpayer dollars invested in the development of its project. In its defense, Gilead says their drug cuts hospital costs for four days. An average patient, therefore, saves the health system about $12,000, based on that bar, they say they can justify even higher prices.
Daniel O’ Day is Gilead’s chairman and chief executive. He says the company has sailed into uncharted waters with pricing the drug amid a pandemic. In an open letter, he wrote it is only responsible for the company to consider the socio-economic factors at play during the pandemic and charge the drug well below what it is worth.
President Trump’s administration has managed to secure nearly all of the company’s supply of the drug. So that it is an available treatment in local hospitals. This agreement however will end in September. Regardless of that, the government contains a right to receive 500,000 more courses from Gilead starting from July and throughout September.
To fulfill what the company stands for, the coronavirus treatment drug will cost 600 dollars in two middle-income nations. The price of Remdesivir, the drug is in demand ever since the discovery of its benefits.
Especially since the death rate for the pandemic is abysmally high and any source of hope is something people want to cling to.
Peter Maybarduk is a lawyer who works at a consumer group Public Citizen; he thinks the price is an outrage and that the drug should accessible for the public as it has already taken nearly $70 million in the name of public funding.
Regardless of how much of a shock Remdesivir’s price brings to many, Dr. David Boulware, from the University of Minnesota says the drug shares a number of merits and is valuable from a health perspective.
Michael Yee, an analyst from the Jefferies pharmaceuticals has told investors the price Gilead was proposing was a little above the expectations of stockbrokers. He believes that at this price Gilead would make money as much as $525 million from the sales within this year and a good $2.1 bi in the following year. Whether Gilead chooses to lower prices for the coronavirus treatment drug will depend on the pricing of its competitors.