In a press release posted on Gilead Sciences' website on Monday, June 29, Daniel O'Day, the Chairman and CEO of the company, announced its antiviral coronavirus drug to cost about $2,340 per patient for most well-off nations.

In addition, he agreed to send almost all of its supply of the drug to the United States over the following three months. Last week, the Institute for Clinical and Economic Review (ICER) estimated the price range for remdesivir to be $2,520 to $2,800.

The estimation came after a group of British researchers said they found dexamethasone, a widely available steroid, to reduce mortality among critically ill COVID-19 patients significantly.

Reuters reports that for patients with commercial insurance in the U.S., Gilead said it would charge $520 per vial or $3,120 per course. The cost is a 33 percent increase over the initial price mentioned for governments of developed countries, and patients under government healthcare programs in the U.S. Gilead initially said it would charge about $390 per vial.

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Is Remdesivir Too Expensive for Most?

The price of the highly-regarded coronavirus drug has been a hot topic for many. Experts believe Gilead should avoid appearing to take advantage of the pandemic for profits.

In an open letter released on Monday, O'Day mentioned that remdesivir's price is well below the value it provides. However, patient advocates disagree, saying the cost should be cheaper, given that the drug's development and trials received financial support from the U.S. government.

According to U.S. Representative Lloyd Doggett, a Democrat from Texas, Gilead had set an "outrageous" price for such a modest drug, which taxpayers saved from a "scrap heap of failures."

Meanwhile, analysts from the Royal Bank of Canada predict that the drug could generate about $2.3 billion in revenue for 2020. They said additional gains could be limited because vaccines and better treatments are currently being developed.

Gilead has also collaborated with generic drugmakers based in Pakistan and India. Hetero Labs Ltd and Cipla Ltd have agreed to supply remdesivir to 127 developing countries.

Cipla will be pricing the generic version of the drug at 5,000 Indian rupees, approximately $66.24, while Hetero Lab will be charging an estimated $71.54 for their generic drug.

COVID-19 Patients Hopeful for Remdesivir

Remdesivir is expected to be in high demand, being one of the few treatments shown to alter the course of COVID-19 effectively. After intravenous administration of the medication, favorable outcomes are seen in patients, significantly shortening their hospital stay.

The antiviral drug was previously intended to treat Ebola but failed in its clinical trials. It has now redeemed itself as one of the most sought-after drugs for the current pandemic and has won emergency use authorization in the U.S. and full approval for use in Japan.

Remdesivir is believed to be most effective in treating coronavirus patients earlier in the course of the disease than dexamethasone. The corticosteroid medication was found to reduce deaths in patients needing supplemental oxygen and those hooked on mechanical ventilators.

In its current formulation, remdesivir is only used as part of a five-day treatment course for severely ill patients requiring hospital admission. The company is also currently working on an inhaled version of the drug for milder cases to allow its usage even outside the hospital setting.

Read Also: COVID-19: Remdesivir Could Cost up to $4,500 Despite Costing Just $9.32 to Manufacture