AHF: Corporate Welfare Spurs Gilead’s Record Profits on AIDS Drugs

  AHF: Corporate Welfare Spurs Gilead’s Record Profits on AIDS Drugs

According to Investor’s Business Daily, Gilead Sciences (GILD) was one of the
 top S&P 100 gainers list for November, 2012; AIDS advocates decry AIDS drug
 profiteering by Gilead and CEO John Martin, noting that record earnings come
 on the heels of Gilead’s release of its newest drug, Stribild, a four-in-one
AIDS tablet which the company priced at $28,500 per patient per year—the most
                 expensive first line HIV/AIDS therapy today

Business Wire

WASHINGTON -- December 04, 2012

Advocates from AIDS Healthcare Foundation  (AHF) today criticized Gilead
Sciences and its CEO John Martin on the news that the company landed on
Standard & Poor’s top 100 gainers list for November, 2012 shortly after
scoring record profits in its 2012 third quarter. According to a Cabot
Investing Newsletters news item, “Gilead Sciences (GILD) was one of the top
S&P 100 gainers list for November, Investor’s Business Daily reported. The S&P
100 index includes the very biggest U.S. companies — the largest market cap
stocks in the broader S&P 500. Megacaps often offer slower gains, but Gilead
was a big winner last month.”

An earlier Reuters news item from late October noted, “Gilead's third-quarter
sales of HIV drug Atripla rose 9 percent to $865.4 million, which was short of
the $876 million expected by analysts, according to numbers published by BMO
Capital Markets. Sales of HIV drug Truvada rose 8 percent to $804.2 million,
beating analysts' estimate of $762 million.” The article also noted that third
quarter revenue was up 14% overall to $2.43 billion, as the company also
raised its full year sales forecast to $9.2 billion.

“The record profits for Gilead Sciences that continue to roll in are based
largely on the company’s historic pattern and practice of AIDS drug price
gouging and the corporate welfare showered on Gilead by government programs
such as Medicare, Medicaid and the V.A. as well as private insurers,” said
Michael Weinstein, President of AIDS Healthcare Foundation. “This is about as
clear an example of AIDS drug profiteering as one can get. Gilead, under CEO
John Martin, scored record profits in the third quarter by gouging hard-hit
government programs and private insurers with incredibly high prices that do
not reflect the reality of the R&D involved in developing these lifesaving
drugs nor the actual costs to manufacture them. As tax dollars pay for most of
these drugs, we continue our call on Gilead to expand price concessions on
Stribild and its other AIDS drugs to other programs including Medicaid,
Medicare, private insurers and other payers.”

Stribild, Gilead’s new four-in-one AIDS treatment combination was approved by
the Food and Drug Administration (FDA) in early September and immediately
priced by Gilead at $28,500 per patient, per year, Wholesale Acquisition Cost
(WAC). That price was over 35% more than Atripla, the company’s best selling
combination HIV/AIDS treatment, and made Stribild the highest priced first
line combination AIDS therapy today.

About AIDS Healthcare Foundation

AIDS Healthcare Foundation (AHF), the largest global AIDS organization,
currently provides medical care and/or services to more than 183,000
individuals in 28 countries worldwide in the US, Africa, Latin
America/Caribbean, the Asia/Pacific Region and Eastern Europe. To learn more
about AHF, please visit our website: www.aidshealth.org, find us on Facebook:
www.facebook.com/aidshealth and follow us on Twitter: @aidshealthcare.

Contact:

AIDS Healthcare Foundation
Ged Kenslea,  Communications Director
Los Angeles, CA, USA +1-323-791-5526 [mobile]
+1-323-308-1833 [work]
gedk@aidshealth.org
or
AIDS Healthcare Foundation
Tim Boyd,  Public Affairs Manager
Washington, DC, USA +1-213-590-7375 [mobile]
timothy.boyd@aidshealth.org
 
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