A new hepatitis treatment drug developed by Gilead Sciences was given a regulatory approval on Friday, but it is more expensive than its predecessor, Sovaldi.
The drug, called Harvoni, is a combination of Ledipasvir and Sovaldi. Clinical tests showed that the drug is effective in treating the most common type of Hepatitis C in at least 94 percent of the patients. Harvoni is recommended as a follow-up medication for those who have taken Sovaldi.
Last month, Gilead announced its plan to increase the price of Sovaldi from $84,000 for a 12-week treatment to an undisclosed price. Analysts predicted that the price might be between $95,000 and $100,000, but not exceeding $150,000. At $84,000, it will cost insurers about $1,000 per pill for a 12-week treatment.
Harvoni, on the other hand, is estimated to cost $1,050 per pill. The treatment costs around $63,000 for an eight-week period and $94,500 for 12 weeks. The pricing has been approved by the U.S. Food and Drug Administration (FDA).
Experts believe that the pricing scheme for Harvoni, though a bit pricey, is still more reasonable than other treatments. But, some are still disappointed at its price.
"Gilead had an opportunity to demonstrate that it wants to be part of the affordability solution, but the company still seems to believe it has a blank check," spokesman for the trade group America's Health Insurance plans, Brendan Buck, told Marketwatch. "Our health care system has long relied upon a careful balance between affordability and rewarding innovation and this pricing topples it."
The increasing cost of Hepatitis C treatments is already causing a strain on health insurers. Each time a better treatment is introduced to the market, it is always more expensive than the previous one. But, pharmaceutical companies said that the six-digit price is fair enough as it not only extend survival, it also prevents more expensive surgeries brought by complications.
"If a surgeon announced they had developed a surgery that would cure 90 percent of patients and that surgery would cost $200,000, nobody would bat an eye," said Mick Kolassa, a former pharmaceutical industry pricing official who now advises companies at Medical Marketing Economics , to the Wall Street Journal.
