First coronavirus drug priced

Remdesivir is a pro-drug of a nucleotide analogue that is intracellularly metabolized to an analogue of adenosine triphosphate that inhibits viral RNA polymerases. Remdesivir has broad-spectrum activity against members of several virus families, including filoviruses (e.g., Ebola) and coronaviruses (e.g., SARS-CoV and Middle East respiratory syndrome coronavirus [MERS-CoV]) and has shown prophylactic and therapeutic efficacy in nonclinical models of these coronaviruses.

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Department of Health and Human Services and Gilead Sciences is the drug's manufacturer.It is the first drug shown to be effective against the coronavirus.

Remdesivir is so far the only treatment shown to speed recovery time in severely ill coronavirus patients. A large clinical trial, sponsored by the National Institutes of Health, found that the drug modestly shortened recovery time by 4 days, on average, but did not reduce fatalities. 

According to the Department of Health and Human Services and Gilead Sciences Remdesivir will be sold for $520 per vial, or $3,120 per treatment course, to hospitals for treatment of patients with private insurance.

The price will be set at $390 per vial, or $2,340 per treatment course, for patients on government-sponsored insurance and for those in other countries with national health care systems.

Rena Conti, a health care economist at Boston University and other experts said that the new pricing is not unreasonable. Other promising drugs now in late-stage testing are already on the market for other purposes, and cost several times more than Remdesivir.

The drug will be sold only in the United States through September, meaning US patients will receive almost the whole of Gilead’s output, more than 500,000 treatment courses. 

Gilead has entered into an agreement with the U.S. Department of Health and Human Services (HHS) whereby HHS and states will continue to manage allocation to hospitals until the end of September. After this period, once supplies are less constrained, HHS will no longer manage allocation.