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Morning Briefing

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Wednesday, Jul 8 2020

Full Issue

Perspectives: Regeneron Suit Highlights Medicare鈥檚 Heartless, Senseless Anti-Kickback Rules

Read recent commentaries about drug-cost issues.

Last Wednesday, the Department of Justice filed suit against Regeneron for paying 鈥 tens of millions of dollars in kickbacks鈥 through a foundation that helps patients cover copays associated with Eylea, its macular degeneration drug. Whether or not Regeneron broke the law, the suit illuminates the stupidity, cruelty, and counterproductivity of Medicare鈥檚 insistence that patients feel financial pain in order to receive medically necessary therapies. (Peter Kolchinsky, 6/30)

Last week, Gilead Sciences鈥痑nnounced鈥痶hat it would sell a five-day course of its coronavirus drug,聽remdesivir, for聽just over $3,100. The antiviral, currently the only medication proven to speed recovery from COVID-19,聽received FDA approval in May. Some Democratic lawmakers and policy experts attacked聽remdesivir's聽price as soon as it was announced.聽They claim聽that Gilead could sell the drug for as little as $1 per dose聽鈥撀燼nd that the higher price reflects nothing more than the pharmaceutical company's desire to capitalize on the crisis. (Sally Pipes, 7/5)

Drug prices have been coming down, with more drugs facing generic competition as they come off patent protection. However, one area where drug prices have not come down is in biologic drugs. Biologic drugs have been around since the late 1980s, with the development of insulin, followed by human growth hormone and many others. Those drugs should have competition. And that competition should come from pharmaceuticals known as biosimilars. (John Laub, 7/3)

While a world awash in a pandemic awaits a coronavirus vaccine, Gilead Sciences Inc. is bringing a treatment to market. Remdesivir is an experimental drug that may help Covid-19 patients recover more quickly 鈥斅燽ut it doesn鈥檛 immunize them. Its price tag is $600 for a series of six treatments for patients who live in developing countries where Gilead, to its credit, allows a generic version to be sold. If patients聽live in a developed country and the government insures them or provides their health care, it costs $2,340. If they have private insurance and live in the U.S., it costs $3,120. (And that鈥檚 if six treatments work; some patients are expected to need 12 treatments, so those prices could double.) (Timothy L. O'Brien, 7/2)

A rare bright spot followed the emergence of Covid-19 and its spread across the globe: the discovery that remdesivir, an experimental antiviral originally developed by Gilead Sciences and the U.S. government for use against Ebola, works against SARS-CoV-2, the virus that causes Covid-19. Remdesivir isn鈥檛 a miracle drug. It has not been proven to significantly reduce patients鈥 risk of dying from Covid-19, though evidence from an NIH-led clinical trial indicates that it helps patients with severe Covid-19 recover more quickly, meaning they can leave the hospital sooner and return home. We urgently need more and better evidence of remdesivir鈥檚 (likely modest) benefits. (Christopher Morten, Christian Urrutia and James Krellenstein, 7/2)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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