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U.S. lawmakers ask Gilead to justify hepatitis C drug's $84,000 price

Justice SystemCrime, Law and JusticePharmaceutical IndustryChemical IndustryHenry A WaxmanJohn C. MartinU.S. Congress

U.S. lawmakers have asked Gilead Sciences Inc. to justify the price of its new $84,000 drug for hepatitis C patients amid growing concern about the high cost to taxpayers and consumers.

In a letter to the Foster City, Calif., company Thursday, Rep. Henry A. Waxman (D-Beverly Hills) and two other Democratic lawmakers asked Gilead Chief Executive John C. Martin to explain the rationale for selling Sovaldi for $1,000 per pill.

Previous therapies for hepatitis C helped only about half of patients and had numerous side effects. In comparison, clinical trials of Sovaldi have shown cure rates approaching 90% with far fewer complications.

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The lawmakers noted those potential benefits for patients, but they said the expensive medication could impose substantial costs on taxpayer-funded Medicaid programs and lead to premium increases for those with employer or individual health coverage.

In their letter, Waxman, Rep. Frank Pallone Jr. (D-N.J.) and Rep. Diana DeGette (D-Colo.) said "our concern is that a treatment will not cure patients if they cannot afford it."

The lawmakers said they wanted a response from the company by April 3.

Gilead has defended its pricing and said that Sovaldi represents a major advance over existing treatments for hepatitis C. The company has said the new therapy can avoid the long-term medical expenses related to liver failure, cancer and transplants. 

"We had heard the concerns raised in the letter and had reached out to a number of members of Congress prior to this letter to address those concerns," said Gilead spokeswoman Cara Miller. "We look forward to the opportunity to meet with them."

Shares of Gilead were off $3.21, or 4%, to $72.32 in Friday trading.

Left unchecked, some hepatitis C infections result in liver damage, liver cancer or death. Chronic hepatitis C infection affects about 3 million people in the U.S., and more Americans are expected to find out they have the disease as screening becomes more common.

Beyond this new hepatitis C drug, employers and insurers are concerned about a growing number of expensive specialty medications that are coming onto the market. They say the wide adoption of these drugs could undermine efforts to rein in soaring medical costs.

A recent report estimated the annual cost could top $18 billion if half of all California patients with hepatitis C received Sovaldi, which costs $84,000 for a 12-week course, or another new drug, Olysio, which costs about $66,000.

This month, a panel of California medical experts met to discuss those potential costs and determined that Sovaldi was a "low-value" treatment in light of its high price tag.

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Copyright © 2014, Los Angeles Times
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Justice SystemCrime, Law and JusticePharmaceutical IndustryChemical IndustryHenry A WaxmanJohn C. MartinU.S. Congress
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