Gilead Sciences Inc. released its pricing plan for Remdesivir, an antiviral drug that has proven highly effective in curing the coronavirus, according to a statement issued Monday.
It will cost the U.S. government and other developed countries $2,340 for a standard 5-day treatment, while costing private insurers in the U.S. $3,120, per the statement.
Remdesivir has proven effective in treating COVID-19 cases four days faster compared to the placebo group, according to the Wall Street Journal.
Since May, Gilead has donated close to 250,000 treatment courses of the drug to the U.S. government to cure coronavirus cases, per Bloomberg.
The company is set to begin selling Remdesivir in July across the globe. Many experts believe this pricing announcement will be vital in setting a precedent for how other COVID-19 curing drugs will be priced, according to Bloomberg.
Gilead argues the current price is well below market price and they could have charged more. The drug is expected to save an average of $12,000 per patient by releasing people from the hospital earlier, as reported by Bloomberg.
WASHINGTON, DC – MAY 01: U.S. Vice President Mike Pence listens to Gilead Sciences Chairman and CEO Daniel O’Day during an announcement that the Food and Drug Administration issued an emergency approval for the antiviral drug remdesivir in the Oval Office at the White House May 01, 2020 in Washington, DC. (Photo by Erin Schaff-Pool/Getty Images)
The Royal Bank of Canada says Remdesivir has a revenue potential of $2.3 billion in 2020, which will offset the over $1 billion in development and distribution costs, according to Reuters. (RELATED: Widely Used And Inexpensive Drug Offers New Hope For Severe COVID-19 Cases)
Gilead has partnered with the U.S. Department of Health and Human Services (HHS) to manage allocation to hospitals across the nation through September. As soon as supplies are less constrained, HHS will no longer oversee distribution.
Trump and the HHS announced Monday that they had secured over 500,000 treatment courses of Remdesivir.
The President has secured more than 500,000 treatment courses of the drug remdesivir for American hospitals through September. We are doing everything in our power to learn more about life-saving therapeutics for COVID-19 and secure access for Americans. https://t.co/uDjHtF9MR2 pic.twitter.com/bPPbgtjKod
— Secretary Alex Azar (@SecAzar) June 29, 2020