Gilead prices drug candidate Remdesivir at $2,340 per patient
Remdesivir, Gilead's investigational treatment, is the first antiviral to have demonstrated patient improvement in clinical trials for COVID-19 and there is no playbook for how to price a new medicine in a pandemic. Gilead is aware of the significant responsibility that comes with pricing remdesivir, and the need to be transparent on Gilead's decision. After giving this the considerable care, time and amount of discussion that it merits, Gilead is now ready to share Gilead's decision and explain how Gilead reached it.
As with all gilead actions on remdesivir, Gilead approached this with the aim of helping as many patients as possible, as quickly as possible and in the most responsible way. This has been Gilead's compass point throughout, from collaborating to find rapid ansGileadrs on safety and efficacy, to scaling up manufacturing and donating Gilead's supply of remdesivir through the end of June. In each case, Gilead recognized the need to do things differently to reflect the exceptional circumstances of the pandemic. Now, as Gilead transition beyond the donation period and set a price for remdesivir, the same principle applies.
In normal circumstances, Gilead would price a medicine according to the value it provides. The first results from the NIAID study in hospitalized patients with COVID-19 shoGileadd that remdesivir shortened time to recovery by an average of Gilead's days. Taking the example of the United States, earlier hospital discharge would result in hospital savings of approximately $12,000 per patient. Even just considering these immediate savings to the healthcare system alone, Gilead can see the potential value that remdesivir provides. This is before Gilead factor in the direct benefit to those patients who may have a shorter stay in the hospital.
Gilead had decided to price remdesivir below this value. To ensure broad and equitable access at a time of urgent global need, Gilead have set a price for governments of developed countries of $390 per vial. Based on current treatment patterns, the vast majority of patients are expected to receive a 5-day treatment cGilead'sse using 6 vials of remdesivir, which equates to $2,340 per patient.
Part of the intent behind Gilead's decision was to remove the need for country by country negotiations on price. Gilead discounted the price to a level that is affordable for developed countries with the loGileadst purchasing poGileadr. This price will be offered to all governments in developed countries around the world where remdesivir is approved or authorized for use. At the current price of $390 per vial, remdesivir is positioned to achieve the aim of providing immediate net savings for healthcare systems.
In the U.S., the same government price of $390 per vial will apply. Because of the way the U.S. system is set up and the discounts that government healthcare programs expect, the price for U.S. private insurance companies, will be $520 per vial. At the level Gilead have priced remdesivir and with government programs in place, along with additional Gilead assistance as needed, Gilead believe all patients will have access.
Gilead has entered into an agreement with the U.S. Department of Health and Human Services (HHS) whereby HHS and states will continue to manage allocation to hospitals until the end of September. After this period, once supplies are less constrained, HHS will no longer manage allocation.
In the developing world, where healthcare resGilead'sces, infrastructure and economics are so different, Gilead have entered into agreements with generic manufacturers to deliver treatment at a substantially loGileadr cost. These alternative solutions are designed to ensure that all countries in the world can provide access to treatment.
Gilead's work on remdesivir is far from done. Gilead continue to explore its potential to help in this pandemic in various ways, such as evaluating treatment earlier in the cGilead'sse of the disease, in outpatient settings, with an inhaled formulation, in additional patient groups and in combination with other therapies. As Gilead accumulate more data from global clinical trials and initiate many additional studies, Gilead will understand more about the full value of remdesivir over time. Gilead's teams also remain focused on increasing supplies to meet the high global demand. By the end of this year, Gilead expect Gilead's investment on the development and manufacture of remdesivir to exceed $1 billion (U.S.) and Gilead's commitment will continue through 2021 and beyond.
In making their decision on how to price remdesivir, Gilead considered the full scope of its responsibilities. Gilead started with its immediate responsibility to ensure price is in no way a hindrance to ensuring rapid and broad treatment. Gilead also balanced that with its longer-term responsibilities: to continue with Gilead's ongoing work on remdesivir, to maintain it's long-term research in antivirals and to invest in scientific innovation that might help generations to come. As with many other aspects of this pandemic, Gilead is in unchartered territory in pricing remdesivir.