Gilead CEO Daniel O'Day on remdesivir pricing and ensuring access to treatment

Gilead Sciences announced Monday pricing for its coronavirus treatment remdesivir, saying it will cost $3,120 for a typical U.S. patient with commercial insurance. Gilead CEO Daniel O'Day joins "Squawk Box" to discuss the price tag as well as ensuring patients have access to the drug and concerns surrounding the supply chain.

Gilead Sciences announced Monday the much-anticipated pricing for its coronavirus treatment remdesivir, saying it will cost hospitals $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 antiviral 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 drugmaker 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 private insurers.

“Whether you’re covered by a private insurer, whether you’re covered by a government insurer, whether you’re uninsured with Covid-19, there will not be an issue for access with remdesivir,” Gilead CEO Daniel O’Day said in an interview Monday with CNBC’s Meg Tirrell on “Squawk Box” after the announcement.

Uninsured individuals will be covered under provisions of the CARES Act, a senior official in the Department of Health and Human Services said on a conference call with reporters Monday. For privately insured people, out-of-pocket costs will be determined by individual insurance plans, the official added.

Every drug in the U.S. has two list prices due to the country’s health-care system, O’Day told CNBC, adding that he stands by the pricing structure and that it will ensure access for those who need it. Its government price of $390 per vial was determined based on developed countries with the lowest purchasing power, O’Day said, in order to avoid negotiations with each country that could slow down access to the drug.

The company said it has entered into agreements with generic manufacturers to provide the drug at a “substantially lower cost” in developing countries.

Shares of Gilead were up more than 1% in late-morning trading Monday.

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 patients through commercial insurance.

The longer, 10-day treatment course, which uses an average of about 11 vials, will cost governments $4,290 per patient and $5,720 for a U.S. patient with private insurance.

While there are still no Covid-19 treatments approved by the Food and Drug Administration, scientists have found some success in shortening the recovery time of severely ill 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.

“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,” O’Day wrote in an open letter.

Use of the drug will help hospitals save about $12,000 per patient due to earlier hospital discharge, the company said. In April, the National Institute of Allergy and Infectious Diseases released results from its study that showed Covid-19 patients who took remdesivir usually recovered about four days faster than those who didn’t take the drug.

It has taken nearly two months for the company to announce a price for remdesivir since it received emergency authorization from the FDA to treat Covid-19 patients. In his open letter, O’Day said the pricing decision carried “significant responsibility” as it is the first antiviral drug shown to effectively treat Covid-19 in a major clinical trial.

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99 comentarios:

Amor Fati
Amor Fati:
The road to hell is paved with healthcare and pharma execs and the politicians they purchase
Napoleon IV
Napoleon IV:
So this is the face of evil...
Marvin MJ
Marvin MJ:
He is a can tell by his response
Darryl Hamlin
Darryl Hamlin:
Gilead is KNOWN for price gouging so I don’t know how people are surprised.
Stan Mann
Stan Mann:
Quit saying nobody has to pay. The taxpayer "US" will have to pay.
Ibidibi *
Ibidibi *:
Emmet Harrigan
Emmet Harrigan:
You could ensure accessibility by just lowering the price. You care more about your overhead than you do human life
Renaissance Man
Renaissance Man:
Funny how he didnt even answer the question concerning how they set pricing... and its not even a vaccine (cure)... it treats the symptoms only...
Sean O'Daniels
Sean O'Daniels:
What a scam.
andrew pinkham
andrew pinkham:
So his drug is 500 more in this country then anywhere else.
Robert Barth
Robert Barth:
We should be protesting on the doorstep of this company, with with all the wrath of a mob. 💥🔥
Manny Moran
Manny Moran:
"In other words the answer to your question is YES we are looking to make a profit this year"
Profits over people, the dark lord is winning.
Pinkie Love
Pinkie Love:
We need healthcare reform in this country. period..
Joe Blow
Joe Blow:
Well if course all patients should have access we already paid for it with our taxes !!
This drug is minimally effective with coronavirus.
Ass Hole
Ass Hole:
Typical medical industry "professional", he didn't answer the question.
Dan Sorger
Dan Sorger:
It's time to nationalize all drug companies, these companies are utilities in their design, they need to be treated as such
Andre Salazar
Andre Salazar:
At least now you know why they mention it so much + why Gottlieb’s on here every morning saying how great it is with a nervous look on his face = they’re invested in it + Gottlieb is on Pfizer’s board = DON’T FALL FOR THIS OBVIOUS SCAM
Drug dealing at it’s finest. You have too love pharmaceutical kingpins in the 20th century right???
Vlone Bandit
Vlone Bandit:
Those prices are absurd, they are benefiting off of a global pandemic
Brian Case
Brian Case:
Hey interviewer: makes him answer at least ONE question! Sheesh! Can't you just say "that doesn't answer my question, again...."? I mean, are you a robot?
hafiz jamshed
hafiz jamshed:
Well he never answered , Why it’s 30% higher in US..
Steven Williams
Steven Williams:
"There are two prices, one for the wealthy and another for everyone else. that's part of the system in the United States which allows required and expected discounts to the government" but not everyone else. I just really enjoy it when the News tells me that there is no other choice but to continue dragging that boulder.
Belie Dat
Belie Dat:
Hey look it’s one of the most corrupt people on the planet!!
Bob Stapleton
Bob Stapleton:
Always price gouging American people with insurance.. that's why insurance rates going up .
J f
J f:
He's smiling because he's thinking about the 100 million dollar bonus he's going to make
Taking advantage of those that need money the most.

The antiviral medicine remdesivir from Gilead Sciences failed to speed the
improvement of patients with Covid-19 or prevent them from dying,
according to results from a long-awaited clinical trial conducted in
China. Gilead, however, said the data suggest a “potential benefit.”

A summary of the study results was
inadvertently posted to the website of the World Health Organization and
seen by STAT on Thursday, but then removed.
Sean Scovill
Sean Scovill:
Because these guy's are greedy criminal's, this is racketeering at it finest. You wanna live we need to get rich.
Andrew Katumba
Andrew Katumba:
"Will you make a profit?"
Music Man50
Music Man50:
I'm amused at how this pharma con man never answered any of the questions that we're asked. Smooth talker. Smooth con man. Fact is my tax dollars funded this drug and God forbid if I ever need it I'll have you sell my house to pay for it.
Great job big pharma.
sofy sofy
sofy sofy:
Remdesivir : le médicament qui permet à Gilead de s'enrichir sur notre dos ! BRAVO POUR LA GESTION DE VOTRE EN COURS BOURSIER ! JE VOUS SOUHAITE UNE BELLE FUSION ACQUISITION ! Les malades du coronavirus vous remercient !
Peter Zelenkov
Peter Zelenkov:
Perfect example of why we should just nationalize the whole medical and drug industry and take away the profit motives. Screw these sociopaths!!
Penny Gooms
Penny Gooms:
Fruit of intelligent labour!
Coincident; Covid19 have for its
Engineered part ,humorous response ,hepatitis antigen. Fact
Brady Austin
Brady Austin:
Good to know that the treatment is only for the wealthy. Yet again the middle and lower classes get screwed.
d howard
d howard:
Deflection at its finest! Never answer the relevant guestion.
Brian Case
Brian Case:
We need to end for-profit health care. At least start the process. I'm ashamed of our system after having used health care in Spain.
William Alvarado
William Alvarado:
This guy is good and talking out of his ass
In the middle of a pandemic... it’s really profit over people.
Chris Hughes
Chris Hughes:
g g
g g:
Oh hell yeah he’s got plenty available, after he sold his share of stock and now buying more back, double dippin’ all the way to the bank!
Dan Southsilicon
Dan Southsilicon:
money doesn't change people, it only takes the mask off...!
The Zombie Whisperer
The Zombie Whisperer:
Price gouging 🖕
Primarch Khas
Primarch Khas:
Protests cured covid already right?
Jayne Bangert
Jayne Bangert:
So much hype over a drug that´s in Phase 3 simple ...years to approve it
Joe Seph
Joe Seph:
Still better answers than Joe Biden :D hahaha
jean carlo
jean carlo:
That CEO is public enemy #1 ..... you know how enemies end up?
Rossi Montenegro
Rossi Montenegro:
No money in herd immunity -- all about the $$$$
rabel nyc
rabel nyc:
Salena Kroeger
Salena Kroeger:
daniel o'day cares more about profits 4:20 look at that smirk.
Gilead charged $84,000 for an 80 day treatment of sofosbuvir, how do you justify that?
Tre Uselton
Tre Uselton:
I imagine that whether you buy or short this stock depends on whether you are trading on Robinhood or on Bloomberg.
McDonald Trump
McDonald Trump:
Did someone say Guillotine?
AK Birtchison
AK Birtchison:
I think i actually feel brain cells dying
every time i hear a big ceo speak about why it's just the right thing that they win BIG and you should be grateful that they chose not to win bigger.
Friend of Tellus
Friend of Tellus:
Its sooo good to earn all this money !!!
obsolete professor
obsolete professor:
Certain European countries price their traffic tickets based on the violator's income. Yes, some countries also have "free" healthcare, but where do you think the money comes from?
Justin Poindexter
Justin Poindexter:
Rossi Montenegro
Rossi Montenegro:
You are a.businessman. Thief!!
Rossi Montenegro
Rossi Montenegro:
MMS cheap and gooooddd
Sherry Perales
Sherry Perales:
Aww how sweet he's making sure the US is well supplied, I bet at those prices. What a loser and that company needs to pay back it's investors the US taxpayers. Better yet give that worth in stock so the people have a say of what goes on just like any other investor. They'd hate that but the people would love it. Greedy jerks.
NFL YoungBoy
NFL YoungBoy:
I know for a fact Gilead Sciences will make the cure even though I have shares of different pharmaceutical companies such as Abbott that I love I’m confident Gilead Sciences will be the first company to cure Covid 19
Jose Echevarria
Jose Echevarria:
Let’s see how many people will protest this? I’ll wait!!!!!
greedy demons
Terry Flowers
Terry Flowers:
Another reason for Medicare for All, a single payer system such as HR1384 or S1129. Save money, save lives...
Rossi Montenegro
Rossi Montenegro:
MMS IS THE SOLUTION 20€'cost. ¿Who could trust this evil man?😈😈😈
D Mars
D Mars:
dark light
dark light:
Pricing of crocks & pirates
Yeo Wee Huat Huat
Yeo Wee Huat Huat:
Pls jail him !
Stan Mann
Stan Mann:
Speaking of making money off covid-19. What company made the debit cards the IRS was so keen to use?
Rossi Montenegro
Rossi Montenegro:
Lesley Anderson
Lesley Anderson:
Hydroxy Chloroquine is preventive and far out performs Remdesevir. The contrasts are quite obvious. so this is why HCQ has been supressed with taintedwtrials.
Nicky Chuaybamrung
Nicky Chuaybamrung:
Can we just buy the formula , factory ?
PRIVIET SAINT-PETERSBOURG-la Russie en francais:
What a crook
Michel Goormachtigh
Michel Goormachtigh:
Avoid products from Gilead as much as possible. The price serves only the shareholders.
Veronica Quednau
Veronica Quednau:
Why, when the government FAILED to protect us, are we going to foot this bill.

Write your elected officials- the government should foot the cost for everything.

We are the victim's. Victim's of the virus. Victim's of the government WE PAY to represent us and EPICALLY failed!

Why are we getting "it" without even a kiss on the cheek?

We did get that "GREAT" stimulus check, how long ago?? Was that payment for taking "it" up the "Oops" now?

This was government funded treatment.

This is outrageous. Healthcare premiums will go up. Co Pays will go up etc...

We don't fail to pay our taxes to thee out of touch, teet sucking politicians. WHY, then are we rooting this bill for THEIR failure?
Rossi Montenegro
Rossi Montenegro:
No soul
i will buy an rtx 3090 instead of remsedivir
audio scavenger
audio scavenger:
Your drug does nothing to help in fighting the desease. Studies everywhere. Go home.
Micah Dunning
Micah Dunning:
Handmaid's Tale?
Without a taxpayer investment of $99 million, this drug would have been abandoned. For what it costs them to make it should costs only 1$ a day for the treatment! They are not recooping costs as we, the taxpayers paid for that! This is why we need universal healthcare.
Rossi Montenegro
Rossi Montenegro:
Bill Cherry jr
Bill Cherry jr:
How much you wanna bet it costs as much to make as soda pop
Waseem Abbas
Waseem Abbas:
Now people will regret saluting and cheering doctors on media
Master Sonogashira
Master Sonogashira:
Big pharma vs insurance company, idc, just leave the people out of it
.03%... Serology and co-morbidity... 🐇
You have access DOESN'T mean you can AFFORD it. pffff
Alex Sp
Alex Sp:
Seriously we should not back Remdesivir the pricing is like going to a store and buying one roll of toilet paper for 20 dollars
A nothing treatment avoid this poison! The only treatment that is proven to be 97% effective => HCQ + ZPAC + Zinc
Hirenpat Patel
Hirenpat Patel:
This vaccine is dangerous as hell
carebear09 White
carebear09 White:
Everyone go to Mexico like dallas buyers club!
Mike Eral
Mike Eral:
Because insurance companies take 30 percent off the top.
Christopher Orosz
Christopher Orosz:
what a shame
Rossi Montenegro
Rossi Montenegro:
Only two donkeys will pay this CrAzy price
Ouis Sandy
Ouis Sandy:
Because we can afford it! This guy gave away 100s of thousands. No one in America will pay a dime. Local state federal private fail safes are in place.
GD profiteers of suffering, this is what capitalism looks like
So use the steroid (more effective) used in England for pennies on the dollar.....BS when we pay for part of the research the cost should be minimal....they are stealing from the tax payer and this drug is marginal at best in its efficacy !!!!!! (Capitalism during a death pandemic)