Shares of Gilead Sciences rose as much as 4% in premarket trading Monday when the company disclosed its pricing plans for remdesivir, its coronavirus-fighting treatment.
The company said Monday that the price will depend on the buyer and how long the patient takes the drug. The company will charge the US government and developed countries $390 per vial of remdesivir, or $2,340 for a five-day course using six vials of the drug — what the vast majority of patients are expected to receive.
“As the world continues to reel from the human, social and economic impact of this pandemic, we believe that pricing remdesivir well below value is the right and responsible thing to do,” said Gilead CEO and Chairman Daniel O’Day in a statement.
Gilead also said part of its decision was to remove the need for country-by-country price negotiations. The price will be offered to “all governments in developed countries around the world where remdesivir is approved or authorized for use,” the company said.
Gilead will charge US private insurance companies $520 per vial, or $3,120 for a five-day course of the treatment. It added that the drug could save hospitals $12,000 per patient because of earlier discharges.
The drug was approved for emergency use by the US Food and Drug Administration in May, and the company has been donating its supply for distribution in the US. Gilead will start charging for remdesivir in July.
Gilead Sciences has gained about 15% year-to-date through Friday’s close.