I’m going to ask you to hang with me on this one. It is a lesson in pharmaceutical pricing and what your insurance will/can pay. Medicaid can’t!
I worked in Big Pharma Research and Medical Affairs for a quarter century. So? I see pricing strategies for Hepatitis C treatment compounds and they will affect you. Let’s look at:
- Pricing Strategies for Big Pharma, and they DO have one for who, how much, and how long
- How some get to bypass this pricing strategy entirely
- Why patients will unnecessarily suffer with this curable Hep C
These days you can’t swing a cat without uncovering a new treatment on the horizon! Good! Right? Mostly. Big Pharma competitors have a short time on top and intend to make as much profit for stakeholders (stock holders)as possible. It is the job.
Remember when Vertex launched Incivek (telaprevir) fourteen months ago? First new drug in forever. All new patients were given Incivek along with the standard cocktail of Interferon/Ribavirin. Vertex was the new darling in hepatology, for a year. Sales went from $76.1 Million Q 1 2013 to $44.3 Million Q 4 2013. Now they have dropped out of Hep C research because there is a new rock star launch; Gilead Sciences with Sovaldi (sofusbuvir).
“Record sales of a new hepatitis C drug, Sovaldi, pushed the first-quarter earnings of Gilead Sciences far beyond expectations, the company reported on Tuesday, Sovaldi (sofusbuvir), the company’s $1,000-a-pill medicine to treat hepatitis C, had sales of $2.27 billion in the first quarter, the company said in a statement. That beat an average of analyst estimates by more than $1 billion. The Foster City, California-based company also reported profit excluding certain items of $1.48 a share, beating by 56 cents the analysts’ average estimate (GILD:US). (Yes that is Billion not Million.) The hepatitis C sales are “above even the high end of buy-side expectations,” Mark Schoenebaum, an analyst with ISI Group LLC in New York, said in a note to clients. He called it the best drug introduction in history. Gilead, the world’s biggest makers of HIV drugs, yesterday reported total first-quarter revenue of $5 billion.
Gilead is awaiting U.S. regulatory approval of a two-drug combination with Sovaldi that does away with shots that boost the immune system, yet produce side effects. Company executives said they are aware of the price criticism and the sustainability of spending on the drug. “There are natural limits on what I think is appropriate for next generation products,” Chief Operating Officer John Milligan said yesterday on a conference call.”
“If cost were not a factor, we would want to treat the entire population,” said Dr. Rena Fox, a professor of medicine at the University of California, San Francisco. She said it was frustrating that “we finally get this great treatment and then we withhold it.”
Ah, my point exactly.
And then there is Egypt. Yes that Egypt.
On March 12 the Egyptians declared that negotiations between the ministry and the American company were successful and Egypt will obtain the drug for only 1 percent of its price internationally, according to Al-Masry Al-Youm. Adawy, Minister. The price of a one-month prescription in Egypt will cost $300 while in the U.S. it costs $28,000 a month. (Yes that is Hundred, not Thousand). The full course will cost $13,000 instead of the $168,000 it costs in the U.S.…. They agreed to support making hepatitis c a top priority and to intensify efforts to provide the required medicine at “affordable prices”. According to Reuters, Gilead said on March 22 that it was “pleased to have finalized an agreement” to provide the cure to Egypt, one of the countries with the highest rate of hepatitis C patients.
May 6, 2014: Janssen Submits Supplemental New Drug Application to U.S. FDA for OLYSIO™ (Simeprevir) for Once-Daily Use in Combination with Sofosbuvir for 12 Weeks for the Treatment of Adult Patients with Genotype 1 Chronic Hepatitis C. AbbVie, Merck, Bristol-Meyers-Squibb and Johnson & Johnson have potential treatments on the horizon. This is why Gilead is gouging now. Big Pharma calls it recouping research money. Some is profit too. It’s all perspective. Which a Hep C patient is sorely missing.
I shit you not. Thanks for hanging with me on Big Pharma Pricing. Now you can teach MBA students. I am feeling powerless though. Maybe you know someone in Egypt.
One last thought: I am clear of Hep C Virus after two years and I wish this for you.
Go see my friends at http://www.hepatitiscnews.com They have great helpful news all the time!