Morning Briefing
Summaries of health policy coverage from major news organizations
Gilead Stock Dips On Details About Discounting Of Hepatitis Drugs
Shares in Gilead Sciences Inc. fell as much as 10% in morning trading Wednesday on the New York Stock Exchange, a day after the company estimated the discounts it gives on new hepatitis C drugs would more than double this year. Investors appeared surprised by the amount of the discounts, which Gilead said during an earnings call on Tuesday would increase to an average of 46% this year, up from 22% last year. (Rockoff and Stynes, 2/4)
File this under ‘You can’t please everyone all the time.’ On one hand, Gilead Sciences had great news yesterday for investors. The drug maker reported that revenue more than doubled in the fourth quarter thanks to $3.8 billion in sales of its Sovaldi and Harvoni hepatitis C treatments. ... But then there was the sobering news that discounts for the treatments, which Gilead and its supporters argue are more cost-effective than the previous standard of care, will more than double this year – to 46%, on average. (Silverman, 2/4)
California-based bio-pharmaceutical company Gilead Sciences released strong quarterly earnings Tuesday – revenues more than doubled from a year earlier and profits beat analysts’ estimates. Then, on Wednesday, the company’s stock fell more than 8 percent on the Nasdaq exchange. The stock decline is pegged to Gilead’s telling investors that the company will offer deeper discounts in 2015 than it did last year on its most successful new drugs – Sovaldi and Harvoni – that are highly effective treatments for hepatitis C. The list price for an eight-to-12-week course of treatment with either drug ranges from $84,000 to well over $100,000. (Hartman, 2/4)
In California, lawmakers are examining the high cost of the hepatitis drugs.
California lawmakers are joining the national debate over what effect high-priced specialty drugs are having on medical costs for consumers and taxpayers. A hearing Wednesday led by state Sen. Ed Hernandez (D-West Covina) is expected to feature testimony from an executive at Gilead Sciences Inc. about Sovaldi, the company's $1,000-per-pill hepatitis C drug that has drawn criticism from members of Congress, Medicaid officials and health insurers. (Terhune, 2/4)
Cigna also posted higher fees and enrollments in its earnings report -
The company said it expected to post per-share earnings of $8 to $8.40 for the year. Analysts polled by Thomson Reuters were expecting $8.17 a share. Cigna said the most recent quarter capped a year that saw fee and premium growth across its segments. (Calia, 2/5)
