The universal outrage over overpriced essential drugs has put another pharmaceutical company in the spotlight. Gilead Sciences Inc. apparently knew that their Hepatitis C treatment would be too expensive for most patients and would cause “extraordinary problems” for government health programs, Wall Street Journal noted.
The 144-page US Senate report on Gilead's pricing practices is the latest in a chorus of criticisms launched against big pharmaceuticals. The committee overseeing the overpricing by Gilead focused on their drug Sovaldi and its partner treatment Harvoni.
"It was always Gilead's plan to maximize revenue, and affordability and accessibility was an afterthought," Democrat Senator Ron Wyden from Oregon said at a news conference together with Republican Iowa Senator Chuck Grassley.
Reuters reported that Sovaldi and Harvoni prices do not properly reflect research and development of the drugs. The $11 billion Gilead paid for Pharmasset to acquire the medications was “purely a desire to maximize profit.”
Sovaldi has a list price of $84,000 for the treatment. This brings each pill at about $1,000. The Gilead drugs have been proven to be more effective over prior treatments, have higher cure rates, and have less side effects.
Senator Wyden added, "If Gilead's approach to pricing is the future of how blockbuster drugs are launched, it will cost billions and billions of dollars to treat just a fraction of patients.” Medicare and Medicaid expenses combined for Sovaldi and Harvoni treatments exceeded $5 billion before rebates. In Indiana, $40 million was spent to treat just 462 patients.
Gilead respectfully disagreed with the official findings of the Senate. "With the rebates and discounts now in place, the prices today are less than the cost of prior regimens," the company said. Gilead stressed that long-term costs in managing chronic Hepatitis C are reduced with Gilead drugs. They cited the prevention of liver failure and the need for transplants as examples.
The committee additionally cited an email from Kevin Young, Gilead's executive vice president for commercial operations, that was addressed to colleagues in November 2013 before Sovaldi was cleared for sale by U.S. regulators: "Two sincere requests...Let's not fold to advocacy pressure in 2014. Let's hold our position whatever competitors do or whatever the headlines."
