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DewDiligence

04/14/14 5:04 PM

#176776 RE: DewDiligence #176707

Re: HCV pricing estimates for US market

Inasmuch as several regular posters on this board are invested in ENTA and/or GILD, I’m surprised no one commented on the HCV-pricing estimates in #msg-100491031.

If any readers think the estimates in #msg-100491031 are off-base, I encourage them to post their own numbers rather than to offer strictly qualitative feedback. T.i.a. Dew
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jq1234

04/20/14 11:21 PM

#177038 RE: DewDiligence #176707

HCV pricing:

I'll give a try as it is tough to estimate drug price in US as it doesn't particularly follow any logic.

Dewophile's estimate of Sofo/Ledi price of $1200/pill is reasonable as it fits closely to GILD's pricing for HIV FDC pills in the past. I thought it might be somewhat lower because both 8 and 12-week regimens are very close but above to two important psychological bars at $1200/pill: 1) GILD might want to avoid crossing $100,000 bar for 12-week regimen ($1200x84=$100,800); 2) GILD might want to lower 8-week regimen $67,200 below Olysio cost of $66,000 to deflect criticism. The solution is to price sofo/ledi at about Sovaldi plus IFN price at roughly $96,000 for 12-week regimen, roughly $1150/pill, resulting $64,400 for 8-week regimen.

If ABBV price the way you did - I really hope they do as I don't have much history to rely on - effective discount will be about 5% and 35% respectively to GILD 8- and 12-week regimens. Thus it doesn't affect your overall estimates that much.

On the other hand, GILD could blow all our estimates away by pricing sofo/ledi much higher because they truly believe their pricing power. Regardless, ABBV has 2nd mover advantage in pricing, I hope they will be bold by defying conventional pricing model since this is once in a life time opportunity.
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fink

04/21/14 1:17 AM

#177039 RE: DewDiligence #176707

Gild's pricing is a bargain compared to an organ replacement. However the State's Medcaids would rather take a gamble the IV users and down and outs, will die before they get to the point of replacing an organ due to HepC.

That's the big question. Are high risk losers worth the $$?
It's selling off the shelf. Can't wait for the Q report.
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DewDiligence

06/16/14 3:42 PM

#179353 RE: DewDiligence #176707

UK’s NICE not ready to endorse Sovaldi yet (due to pricing , of course):

http://www.reuters.com/article/2014/06/16/us-gilead-sciences-britain-idUSKBN0ER0VI20140616

The UK list price for 12 weeks of Sovaldi is £35,000 ($59.4K at the current exchange rate).