E Shocker! Gilead’s HCV Drugs Are Cheaper In Europe

The Wyden-Grassley report has ruffled some feathers in the pharmaceutical industry. The 18 month investigation determined that Gilead GILD priced Sovaldi ($1,000 pill per day) to maximize revenue; R&D costs or the multi-billion acquisition of Pharmasset may not have factored into the price. The takeaway from the report is clear — there could be justification for Gilead to make its HCV regimen more affordable. GILD fell about 4% last week, largely due to the investigation.

Pundits and the media immediately attempted to poke holes in the Wyden-Grassley findings. According to Forbes HCV drugs are cheaper in the U.S. than in Europe:

Amid all of the wailing and gnashing of teeth on drug prices, it was stunning to hear recent comments by Dr. Steve Miller, Chief Medical Officer of Express Scripts ESRX which governs the pharmacy benefits of 85 million Americans. Miller announced yesterday at the Forbes Healthcare Summit 2015 that the cost of hepatitis C drugs in the U.S. is now less than that in Europe. Furthermore, Miller boasted that Express Scripts pays far less for the new cholesterol lowering PCSK-9 drugs like Regeneron’s Praluent, than the sticker price of $9,400/patient/year … Are U.S. drug prices really going through the roof?

Gilead bulls immediately jumped on the story. On SA Author Brett Jensen’s article, Gilead: Much Ado About Nothing, SA contributor DoctoRx had this to say:

DoctoRx: As it happens, a former PFE scientific executive has this piece out: “For Hepatitis C Drugs, U.S. Prices Are Cheaper Than In Europe” http://onforb.es/1YNCt2A.

Granted, pharmacy benefit managers like Express Scripts have played Gilead and Abbvie ABBV against each other in order to bring the price down for HCV drugs. The headline figure — $84,000 for Sovaldi and $93,000 for Harvoni — have been heavily discounted. That said, the angle that “HCV drugs are cheaper in the U.S. than in Europe” could provide cover against the Wyden-Grassley report.