Gilead Sciences Inc (GILD)

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Gilead Sciences, Inc. GILD announced pricing for experimental coronavirus drug, remdesivir.

The company set a price for governments of developed countries at $390 per vial which equates to $2,340 per patient as the vast majority of patients are expected to receive a 5-day treatment course using 6 vials of remdesivir.

In the United States, the same government price of $390 per vial will apply. However, due to the way the U.S. system is set up and the discounts expected by government healthcare programs, the price for private insurance companies will be $520 per vial in the country.

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.

For the developing countries, Gilead has entered into agreements with generic manufacturers to deliver treatment at a substantially lower cost.

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The company expects its investment in the development and manufacture of remdesivir to exceed $1 billion by the end of 2020.

The pricing was lower than most estimates.

Gilead’s shares have rallied 19.4% in the year so far compared with the industry’s growth of 10.4%. In fact, remdesivir is pioneering the race for a possible treatment of this deadly virus.