Prognosis
Gilead Remdesivir Price Triggers Analyst Debate on Recouping Investment
- Covid-19 drug costs less than analysts, agencies expected
- ‘Unclear how Gilead will recoup their investment’: SunTrust
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Gilead Sciences Inc.’s move to charge less than expected for its coronavirus-fighting drug drew a debate on Wall Street, as analysts sparred over the company’s ability to recoup its more than $1-billion investment in developing and making the medicine.
The drug developer announced that commercial patients would pay roughly $3,120 for a five-day course of remdesivir, while those on government-led care programs like Medicare would pay about $2,340. That’s well below some estimates that a five-day course could cost as much as $5,000, and compares to Gilead’s analysis that the drug could save $12,000 per patient by helping them get out of the hospital quicker.