Gilead Deal to Sell Sovaldi [Hepatitis C drug] in Poor Countries Meets Criticism

WSJ ^ | Ed Silverman | Sep 15, 2014

[Slings and Arrows]

In a bid to forestall criticism over the price of its expensive Sovaldi hepatitis C treatment, Gilead Sciences GILD -0.46% has reached licensing deals with seven large generic drug makers based in India to sell lower-cost versions in 91 developing countries.

The goal is to provide greater access to the estimated 185 million people who live in low and middle-income countries, and avoid the reputational damage the pharmaceutical industry sustained more than a decade ago in South Africa over litigation surrounding access to costly AIDS medications.

The deal calls for the generic drug makers – including Cipla, Ranbaxy Laboratories 500359.BY +0.46% and the Indian unit of Mylan Laboratories MYL -1.75% – to pay royalties to Gilead for the right to make both Sovaldi and ledipasvir, which the biotech hopes to sell very soon along with Sovaldi as a fixed-dose combination in the U.S.

Sovaldi costs $84,000 for a 12-week course of treatment and clinical studies indicated it has a 90% cure rate. Gilead has argued the price is a bargain compared with older treatments that are less effective, although state Medicaid programs and private insurers worry the drug will become a budget buster.

[Slings and Arrows]

Got Hep C? Time for some medical tourism!

Can you say "unintended consequences?" I thought you could!

[BenLurkin]

Nonetheless, more than three dozen patient advocacy groups say the licensing deals do not go far enough, because the deals excludes many middle-income countries – such as Brazil, China, Turkey, Thailand and Ukraine – where governments and individuals may not be able to afford the Gilead drug.

Well then, I suggest that the " patient advocacy groups" pass the hat amongst themselves and pick up the tab.

[Slings and Arrows]

Not holding my breath. After all, developing new drugs is so easy-peasy.

[Slings and Arrows]

Better late than never...ping!

[RoosterRedux]

Amen.

Gilead (and a company it acquired) spent a fortune developing Sovaldi and no one has a right to criticize.

If critics don't like it, they don't have to use it.

This is free enterprise at its best. If this process is damaged, the best drug delivery system in the history of this planet is damaged and this miracle drug pipeline disappears.

[LucyT]

Thanks for the ping.

[Slings and Arrows]

I agree. Morality aside, I’m worried that forcing drug manufacturers to sell at artificially low prices will choke off innovation.