Replies to post #180285 on Biotech Values

[Biowatch]

GILD Sovaldi pricing still an issue

http://blogs.wsj.com/pharmalot/2014/07/11/gilead-faces-new-pressure-from-u-s-senators-europe-over-hep-c-pricing/

...More than a dozen European countries are joining forces to negotiate a lower price for the Sovaldi treatment sold by Gilead Sciences GILD +0.10%. And yesterday, two U.S. senators, one of whom heads the Senate Finance Committee, yesterday wrote the drug maker to ask for detailed financial information about the $11 billion deal in which Gilead acquired the drug, R&D costs and subsequent pricing forecasts.

The moves come amid tremendous controversy over pricing...

...Of course, the U.S. is relatively hamstrung when it comes to negotiating prices compared to Europe, where haggling is commonplace and cost effectiveness is regularly part of the discussion. Still, the inquiry from the senators underscores the extent to which drug pricing – and not just for hepatitis C – has become a red-hot issue adding pressure on the pharmaceutical industry to justify its actions.
http://blogs.wsj.com/pharmalot/2014/06/12/will-oregon-restrict-coverage-for-a-pricey-gilead-pill-for-hepatitis-c/
http://blogs.wsj.com/corporate-intelligence/2014/04/08/unsustainable-for-our-country-express-scripts-calls-out-pricey-meds/

Still, some say that government spending on the new generation of hepatitis C treatments may be a worthwhile investment. A recent estimate from PricewaterhouseCoopers Health Research Institute suggested that, for private insurers, the impact of new hepatitis C treatments – including Sovaldi any forthcoming medicines – will eventually decline, along with the impact on the growth in spending on overall health care.

Whether governments will agree that such a long view is warranted remains to be seen...