Gilead Sciences announced its plan on Friday to increase the current price of Sovaldi, a new generation of hepatitis C therapy, which is now at $84,000 for a 12-week treatment.
Gilead Executive Vice President Gregg Alton did not disclose the actual price but hinted that it would be based on the cost of the current treatment, which is valued at $95,000. The current treatment includes Sovaldi, which is expected to be available to the public by next month, and old drugs ribavirin and interferon.
"We are going to price this fixed-dose regimen based on those costs," Alton said to Reuters. "We do plan on launching a better product without having a significant premium."
Analysts told Reuters that the new price might be between $95,000 and $100,000. Alton clarified that the new price will not be more than $150,000.
At $84,000, it will cost insurers about $1,000 per pill for a 12-week treatment. The Democratic members of the Congress questioned Gilead in a letter on March asking for an explaination for the drug's very expensive price. The lawmakers were concerned that the drug will not cure patients if they cannot afford it. U.S. health regulators are expected to announce the approval of the drug on Oct. 10.
Alton explained that the price for Sovaldi is the fairest price that they can offer for the drug.
"We think the price is fair," he told the New York Times. "It will save the system money long term."
It is estimated that three to four million Americans are suffering from hepatitis C. If left untreated, it could lead to more severe infections such as cirrhosis and liver cancer. Sovaldi was approved by the U.S. Food and Drug Administration in December 2013 and could cure 80 percent of hepatitis C cases in a matter of 12 weeks, a higher cure rate with a more brief duration than previous treatments. Treatment using Sovaldi is also noted to induce fewer side effects.
