Gilead To Sell Cheaper Generic Version Of Hep C Drug As It Struggles To Compete In Market It Once Dominated
The company says that it's offering the generic treatment so that it can lower costs for patients, but skeptics say Gilead's expensive hepatitis C drugs has put them behind competitors who are offering much cheaper versions. Meanwhile, an Associated Press investigation finds that it's been mostly business as usual for pharma, despite President Donald Trump's vows to cut drugs costs.
Bloomberg:
Gilead To Sell Cheaper Versions Of Drug That Sparked Cost Debate
Gilead Sciences Inc. will sell cheaper versions of its blockbuster hepatitis C drugs, the original versions of which sparked widespread debate about U.S. pharmaceutical costs when they were introduced at a price of more than $1,000 a pill. The new, cheaper versions of Gilead’s Epclusa and Harvoni will cost $24,000 for a course of treatment, the Foster City, California-based company said in a statement on Monday. When Harvoni came on the market in 2014, Gilead set a list price of $94,500. Epclusa was approved for sale in 2016, with a price of $74,760. (Spalding, 9/24)
The Wall Street Journal:
Gilead To Slice List Prices Of Liver Drugs
By launching these so-called authorized generics, Gilead said it is attempting to circumvent the Byzantine U.S. drug-payment system in which the discounts and rebates provided by drugmakers to insurers don’t always benefit consumers. “Our country’s complex drug supply chain means that a drug’s list price does not always fully reflect the price paid by insurers—let alone a patient’s out-of-pocket cost, Gilead Chief Executive John Milligan said in a written statement. (Walker, 9/24)
Stat:
Looking To Bolster Dwindling Hepatitis C Sales, Gilead Plans To Sell Generic Versions
One analyst, Umer Raffat of Evercore ISI, observed in an investor note that Gilead’s market share in Medicaid “has been very low lately” and that AbbVie, which sells its Mavyret treatment at a $26,000 list price, has been dominant with a 70 percent share. “Perhaps this authorized generic Epclusa will move market shares around meaningfully in (the) Medicaid channel,” he speculated. (Silverman, 9/24)
Modern Healthcare:
Gilead To Launch Generic Versions Of Hepatitis C Drugs
Expensive hepatitis C drugs like Harvoni, which was approved in 2014, have helped fuel criticism of the rising prices of branded specialty drugs. Prices of antiviral medication used to treat hepatitis C and HIV have increased 19% from 2010 to 2016, according to an analysis by the Blue Cross and Blue Shield Association. Harvoni's patent doesn't expire until 2030 while Epculsa's lasts until 2032. (Kacik, 9/24)
The Associated Press:
AP Investigation: Drug Prices Going Up Despite Trump Promise
President Donald Trump made reducing drug prices a key promise during his election campaign, repeatedly accusing drugmakers of “getting away with murder.” At the end of May, he promised that drug companies would be announcing “massive” voluntary drug price cuts within two weeks. That hasn’t happened, and an Associated Press analysis of brand-name prescription drug prices shows it’s been business as usual for drugmakers, with far more price hikes than cuts. The number of increases slowed somewhat and were not quite as steep as in past years, the AP found. (Johnson and Forster, 9/24)
The Hill:
Drug Companies Hiking Prices Despite Trump's Promise To Lower Them: Analysis
Drug prices have spiked over the last decade, putting a pinch on consumers who have not seen wages keep up with the hikes.
Prices for the Novartis cancer drug Gleevec, for example, rose in price by 440 percent — from $26,000 to $140,000 — from 2001 to 2017. President Trump has made cutting drug prices a major priority. He blasted the pharmaceutical industry for “getting away with murder” with steep drug prices during the campaign and since. (Weixel, 9/24)
