Gilead Sciences (NASDAQ:GILD) announced Monday the pricing for its coronavirus treatment remdesivir, saying it will cost $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 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 drug maker 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 privately insured people.
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 commercially insured patients.
While there are still no COVID-19 treatments approved by the Food and Drug Administration, scientists have found some success in hastening the recovery time of severe 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.
Said CEO Daniel O’Day, "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."
GILD shares hiked 90 cents, or 1.2%, to $75.47
