Drug ramdevpir for the treatment COVID-19 will cost $3120 for a typical patient from the USA with private insurance, says Fox Business.
Gilead Sciences Inc. has published its price plans for ramdevpir drug used to treat COVID-19, saying that American hospitals will be charged $3120 for the treatment of a typical patient with commercial insurance.
Monday, June 29, the drug manufacturer announced their price plans, adding that the charge will start to charge in July. Until then the US hospitals distribute ramdevpir donated by Gilead after in may, the drug was approved for use in cases of emergency.
According to the plans of the company, Gilead will charge a higher price for patients with private insurance in the US, lower price for patients with state health programs the US such as Medicare, and programs of all other developed countries that insure their patients directly.
The public price will be $390 per dose, or $2340 for the patient who received the shortest course of treatment, and $4290 for a longer course of treatment.
In Gilead stated that the patient insured on a commercial basis, with non-governmental customers, such as hospitals, will be charged about $520 per dose, or one-third more than the public price. For patients receiving shorter, more frequent treatment, that is $3120, and for a longer treatment — $5720.
The USA is the only developed country where Gilead will charge two prices, said in an interview with CEO Daniel O’day. In other countries governments negotiate drug prices directly with manufacturers.
“The logic is that we wanted a unified state prices in developed countries,” said O’day.
Higher price for commercially insured patients in the United States due to the fact that public health programs such as Medicaid usually receive statutory discounts on the prices that companies receive in the private market.
“This medicine at a price far below the benefits that it brings to healthcare systems, and this is true for private and public payers,” said O’day.
According to him, on average the drug should help reduce the costs of hospital services $12 000 per patient. Estimated O’day, in Gilead estimated savings, based on data showing that every day of hospitalization costs $3000 dollars, and that patients receiving ramdevpir, discharged 4 days earlier than those who receive standard treatment.
Patients with COVID-19 receive two doses of ramdevpir by infusion on the first day and one dose daily thereafter. The shortest course of treatment is 5 days and longer — 10 days. Currently, 90 to 95% of patients are five-day courses of treatment.
Ramdevpir first antiviral drug with proven efficacy in the treatment of COVID-19 in the largest clinical study to reduce the recovery time of patients by 4 days compared with placebo in a large study funded by the National Institute of Allergy and infectious diseases.
Still, few people have proven that the drugs against coronavirus infection effective in testing on humans. One of the drugs that has recently produced positive results in clinical trials, was the steroid dexamethasone. A drug that treats COVID-19 on a different mechanism than ramdevpir used in the U.S. market for decades to treat other diseases. Dexamethasone is not yet officially allowed to treat COVID-19 in the US, but it is permitted to designate a “not on the approved indications.”
Prices on ramdevpir discussed by doctors, insurers and investors. This price can serve as a starting point for the assessment of the cost of other medications that would be safe for the treatment of patients with coronavirus.
At the Institute of clinical and economic studies, a nonprofit group dedicated to the analysis of prices for pharmaceuticals, in the last week of June said that a cost-effective price ramdevpir will range from $2520 to $2800 per patient if dexamethasone will become the standard drug for the treatment of COVID-19. Without dexamethasone ramdevpir would be cost effective ranging from $4580 to $5080 per patient.
Management under the control over products and medicines USA on may 1 authorized the emergency use of ramdevpir in the course of the pandemic. In Gilead plan to seek full, permanent approval.
In July, Gilead will begin to charge for the drug, but Federal and state officials will continue to decide which hospitals will receive it. It is expected that in September, Gilead will be enough supply to meet demand, and the company will distribute the drug as well as other medications.
One of the issues which has been already considered in the discussion about how much should it cost to ramdevpir is the role of U.S. government funding.
The national Institute of Allergy and infectious diseases funded a study that showed that the drug accelerated the recovery of hospitalized patients with COVID-19, and plans to spend on research of not less than $ 30 million before the end of the financial year.
In Gilead has also invested in research ramdevpir. The company has previously developed a drug to treat patients with Ebola, but it didn’t work as well as other drugs. Gilead Sciences and other researchers studied the use of ramdevpir for the treatment COVID-19 after the appearance of the virus.
In Gilead stated that it spent about $ 50 million on research and development activities associated with the drug in the first quarter, or about 4.5% of the total costs for these purposes. According to O’day, before the end of 2020 Gilead plans to spend more than $ 1 billion on the development and production of ramdevpir.
Some manufacturers of generic drugs said they plan to buy the drug for less than $1000 for the course in India and Bangladesh, where Gilead has licensed the rights to sell. Raw materials required for the preparation of ramdevpir, costs about $10 per patient for a 10-day course of treatment.