And the Foster City, California, biopharmaceutical company is working with generic-drug manufacturers on lowering the cost of treatment in developing countries.
The US biotech group said government healthcare programmes in developed markets globally would be charged a flat fee of $390 per vial for the drug.
Remdesivir - reportedly capable of shortening recovery time by an average of four days - will cost the USA government $390 per vial, the drug's maker, California-based biopharmaceutical company Gilead Sciences, said Monday in a news release.
In this March 2020 photo provided by Gilead Sciences, rubber stoppers are placed onto filled vials of the investigational drug remdesivir at a Gilead manufacturing site in the United States.
"In normal circumstances, we would price a medicine according to the value it provides".
According to O'Day, the company has entered into an agreement with the U.S. department of health and human services (HHS) whereby HHS and states will continue to manage allocation to hospitals until the end of September. Even just considering these immediate savings to the healthcare system alone, we can see the potential value that remdesivir provides.
"President Trump has struck an incredible deal to ensure Americans have access to the first authorized therapeutic for COVID-19", HHS Secretary Alex Azar said, adding: "To the extent possible, we want to ensure that any American patient who needs remdesivir can get it".
"At the level we have priced Remdesivir and with government programs in place, along with additional Gilead assistance as needed, we believe all patients will have access", Day wrote. The price "will make sure all patients around the world have access to this medicine". Still, remdesivir in its now formulation, is only being used on patients sick enough to require hospitalization as a five-day treatment course.
"Part of the intent behind our decision was to remove the need for country by country negotiations on price", O'Day wrote.
In an interview with The Wall Street Journal, O'Day said the US was the only developed country to get two prices.
The first drug shown to help coronavirus patients recover in clinical trials now has a price tag. "That would mean that governments would be getting a good deal, but perhaps not private insurers in the U.S".
For U.S. patients with commercial insurance, Gilead said it will charge $3,120 per course, or $520 per vial.
"At this price we expect routine adoption of remdesivir for nearly all moderate to severe Covid patients in the U.S".
"Gilead has entered into an agreement with the U.S. Department of Health and Human Services (HHS) whereby HHS and states will continue to manage allocation to hospitals until the end of September. These alternative solutions are created to ensure that all countries in the world can provide access to treatment".
According to the CDC, roughly 300,000 individuals in the USA have been hospitalized since March 1 with COVID-19 (98.4 per 100,000 population), and over 125,000 have died.