U.S. Senate Finance Committee Chairman Ron Wyden (D-Ore.) has called on Gilead Sciences to justify the $80,000-plus cost of its hepatitis C drug Sovaldi, according to Medscape report. Here are five things to know about the drug and its cost.
1. Senator Wyden, along with another member of the Senate Finance Committee, questioned the drugs cost because the expense to federal health programs. "Given the impact Sovaldi's cost will have on Medicare, Medicaid and other federal spending, we need a better understanding of how your company arrived at the price for this drug," the lawmakers said in a release.
2. Gilead Sciences has already fielded criticism for the drug's cost. The drug has a list price of $1,000 a pill, a total of $84,000 for a 12-week course of therapy. But, patients may need a longer treatment period. Prices for a complete course of the drug can reach up to $168,000, not including any other medications, according to the Medscape report.
3. The company pulled in $2 billion in sales in the first full quarter of Sovaldi sales. A Wall Street Journal report estimated that the drug could generate $5 billion to $9 billion in sales during its first year on the market.
4. Gilead Sciences acquired Sovaldi from Pharmasset for $11 billion in 2012, according to the Medscape report. Senators recalled Pharmasset's plan, which involved selling Sovaldi for $36,000.
5. Gilead Sciences has defended the cost of its drug by arguing that they are reducing the overall cost of hepatitis C treatment. Sovaldi decreases the number of healthcare visits and eliminates the cost of medications required to treat the side effects of older therapies, according to the company.
More Articles on Gastroenterology:
6 GI/Endoscopy Devices Receive FDA 510(k) Clearance in June
2 Gastroenterologists on the Question of Price Transparency
10 Gastroenterology & Endoscopy Companies for ASC Leaders to Know
1. Senator Wyden, along with another member of the Senate Finance Committee, questioned the drugs cost because the expense to federal health programs. "Given the impact Sovaldi's cost will have on Medicare, Medicaid and other federal spending, we need a better understanding of how your company arrived at the price for this drug," the lawmakers said in a release.
2. Gilead Sciences has already fielded criticism for the drug's cost. The drug has a list price of $1,000 a pill, a total of $84,000 for a 12-week course of therapy. But, patients may need a longer treatment period. Prices for a complete course of the drug can reach up to $168,000, not including any other medications, according to the Medscape report.
3. The company pulled in $2 billion in sales in the first full quarter of Sovaldi sales. A Wall Street Journal report estimated that the drug could generate $5 billion to $9 billion in sales during its first year on the market.
4. Gilead Sciences acquired Sovaldi from Pharmasset for $11 billion in 2012, according to the Medscape report. Senators recalled Pharmasset's plan, which involved selling Sovaldi for $36,000.
5. Gilead Sciences has defended the cost of its drug by arguing that they are reducing the overall cost of hepatitis C treatment. Sovaldi decreases the number of healthcare visits and eliminates the cost of medications required to treat the side effects of older therapies, according to the company.
More Articles on Gastroenterology:
6 GI/Endoscopy Devices Receive FDA 510(k) Clearance in June
2 Gastroenterologists on the Question of Price Transparency
10 Gastroenterology & Endoscopy Companies for ASC Leaders to Know