Financial records show Gilead generated $14.3 billion in net product sales from its HCV drugs through the first 9 months of 2015, bringing its 21-month total for its HCV drugs to $26.6 billion, $20.6 billion of which is from sales to U.S. patients. Gilead justified Sovaldi’s high price point based on price-per-cure, according to the report. Documents acquired during the investigation illustrate that Gilead officials knew they were in a position to create clear savings for payers but chose to pursue a “regimen neutral” price justified by “cost-per-cure” calculations that resulted in greater revenue per treatment than previous direct-acting antivirals.
The Senate report was eye-opening and provides a likely snapshot of how future medications will be priced by drug companies, said Dr. Rajat Chander, an internist and gastroenterologist in private practice in Raleigh, N.C. “While newer drugs for hep C will ultimately drive the price lower, this Senate investigation is enlightening as to ‘price-per-cure’ for future drugs for other diseases,” he said in an interview. “As physicians, we often find ourselves on the front lines, scrambling to find discounts and rebates for individual patients. However, we need just this kind of bipartisan Senate and government regulatory oversight to balance innovation with affordability. Drug companies like Gilead perform miracles by curing hepatitis C, but we have to make sure these new drugs are affordable.”
The report underscores the frustration felt by physicians who see many hepatitis C patients go without treatment because of high drug prices, Dr. Koppe adds.
“We would all prefer to treat every single compliant patient with hepatitis C who comes through our office,” Dr. Koppe said in an interview. “We now have to spend time explaining the economics of the situation to patients and why they are denied treatment, rather than simply focusing on their medical care.”
Senate investigators note that while competition has now entered the market, concerns remain about the cost of treatment for hepatitis C patients and future medication prices.
“Even as competition lowered prices for therapies, this report documents that concerns remain, particularly in the public payer community, about high costs for treating millions of people in the U.S. infected with hepatitis C, as well as the budgetary effects of a future single-source innovator that might not face competition as quickly,” the report stated.
On Twitter @legal_med