What the ‘Shocking’ Gilead Discounts on its Hepatitis C Drugs Will Mean
By ED SILVERMAN
On one hand,
Gilead Sciences GILD -1.14% had great news yesterday for investors. The drug maker reported that revenue more than doubled in the fourth quarter thanks to $3.8 billion in sales of its Sovaldi and Harvoni hepatitis C treatments. And as
The Wall Street Journal noted, this exceeded Wall Street estimates, making the launches last year the best ever for new drugs, which have generated controversy over their price tags.
But then there was the sobering news that discounts for the treatments, which Gilead and its supporters argue are more cost-effective than the previous standard of care, will more than double this year – to 46%, on average. Gilead cited the need to offer lower prices to Medicaid and the U.S. Department of Veterans Affairs, in particular.
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