It received an emergency use authorization from US regulators in May after a big trial found the medicine sped recovery by about four days in hospitalized patients.
Gilead Sciences Inc. said it would charge the USA government and other developed countries $390 per vial for its coronavirus-fighting drug remdesivir, or about $2,340 for a typical five-day course of treatment. The drugmaker's pricing decision is consequential because it sets a precedent for how much future medicines for COVID-19 may cost.
In the U.S., a five-day course will cost US$3,120 for patients with private health insurance, while those on government programmes such as Medicaid will be charged US$2,340.
Gilead has applied for full approval for the drug in the U.S.
In a statement released on Monday, the U.S. Department of Health and Human Services said that it has secured more than 500,000 treatment courses of the drug for American hospitals through September.
The majority of patients treated with remdesivir will receive a five-day treatment course using six vials of remdesivir, the company said.
In 127 bad or center-revenue worldwide locations, Gilead is making it possible for generic makers to source the drug two global locations are executing that for all around $600 for each remedy study course.
The drug interferes with the coronavirus's skill to duplicate its genetic product.
The Institute for Medical and Financial Assessment, a nonprofit team that analyzes drug rates, explained remdesivir would be charge-efficient in a variety of $four, 580 to $five, 080 if it saved life.
The drug is has emergency use authorization in the USA and Gilead has applied for full approval. In early June, the company announced results from a Phase 3 clinical trial that showed promising results on patients with a moderate form of COVID-19. The formal go-ahead by the European Commission is expected to follow soon.
But recent news that a cheap steroid called dexamethasone - a common $50 steroid - improves survival means remdesivir should be priced between $2,520 and $2,800, the group said. Other advocates, including consumer-rights group Public Citizen, have said the drug should just cost $1 a day based on calculations that it could be manufactured at scale by generic drugmakers for this amount.
"This is a high price for a drug that has not been shown to reduce mortality", Dr. Steven Nissen of the Cleveland Clinic explained in an e mail. It was developed using significant taxpayer funding'.
"Remdesivir should be in the public domain" because the drug received at least $70 million in public funding toward its development, he said.
"The price puts to rest any notion that drug companies will "do the right thing" because it is a pandemic", Dr. Peter Bach, a health policy expert at Memorial Sloan Kettering Cancer Center in NY said in an email.
'The price might have been fine if the company had demonstrated that the treatment saved lives.