After weeks of anticipation, Gilead Sciences (GILD) finally disclosed the pricing for its remdesivir experimental Covid-19 treatment. But while the number is less than what both investors and a cost-effectiveness watchdog had been expecting, the drug holds the potential to generate plenty of sales. But whether it can generate huge profits is open to debate.
The drug maker will be charging $390 for a vial, which works out to $2,340 per patient for a five-day treatment course, although insurers in the U.S. will pay 33% more, or $3,120. More than 120 low and lower-middle-income countries will get the drug at greatly reduced prices, thanks to licensing and production deals that Gilead struck with several generic manufacturers.