The price for governments of developed countries is $390 per vial based on the assumption that patients are expected to receive a 5-day treatment course using 6 vials of remdesivir.
The amount that patients pay out of pocket depends on insurance, income and other factors, the California-based pharmaceutical company said.
HHS has secured more than 500,000 treatment courses of the drug for USA hospitals through September, the agency said on Monday.
Gilead has entered into an agreement with the U.S. Department of Health and Human Services (HHS) so that the HHS and states can manage allocation to hospitals until the end of September. "How can our system allow a company to take a drug treatment that was developed with taxpayer funds and abuse its monopoly to charge such astronomical prices?"
It has taken almost two months for Gilead to announce a price for the Covid-19 drug since it received emergency authorization from the Food and Drug Administration (FDA) to treat patients.
Remdesivir was developed by Gilead Sciences to treat Ebola, the deadly hemorrhagic fever that emerged in West Africa in 2014.
Trials produced encouraging results earlier this year when it showed promise for both preventing and treating MERS - another coronavirus - in macaque monkeys. The company balanced the decision with its "longer-term responsibilities: to continue with our ongoing work on remdesivir, to maintain our long-term research in antivirals and to invest in scientific innovation that might help generations to come", he said. Two countries are doing that for around $600 per treatment course.
The drug interferes with the virus's ability to copy its genetic material.
The price tag is slightly below the range of $2,520 to $2,800 suggested last week by USA drug pricing research group the Institute for Clinical and Economic Review (ICER) after British researchers said they found that the cheap, widely available steroid dexamethasone significantly reduced mortality among severely ill COVID-19 patients.
As for dexamethasone, United Kingdom researchers recently announced that the treatment led to a 35% reduction in death rate among seriously ill, mechanically ventilated patients and 20% for those on oxygen support without invasive ventilation in a large-scale clinical trial dubbed Recovery.
Remdesivir could also be sold for as low as $2,520 because of a cheap steroid called dexamethasone that has also been shown to reduce risk of death, the group said.
Remdesivir is one of the first widely used drugs for COVID-19.
According to the company, the pricing plan announced is "well below" the drug's value and showed responsibility on the part of the company.
Peter Maybarduk, an attorney at the consumer group Public Citizen, called the price 'an outrage'.
"Remdesivir should be in the public domain" because the drug received at least US$70 million ($102 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. It has been approved for emergency use in some patients in the United States.
At the $2,340 government purchase price, Gilead could collect revenue of about $2.3 billion from selling around 1.5 million remdeisivr treatment course in 2020, RBC Capital analyst Brian Abrahams wrote in a Monday note to clients.