Gilead Sciences dropped a bomb when the company finally announced the cost of Covid-19 antiviral Remdesivir on Monday.
The eye-popping price of $2,340 for governments and $3,120 for U.S. insurance companies was lower than some estimates but still sky high.
According to Gilead, a course of Remdesivir treatment, which is about six vials per patient, will cost about $3200 in comparison to let’s say a course of some chemotherapy, could be $16,000.
Gilead saying that this drug is priced below market value and that the pricing of a course of treatment will provide access to any and all patients who need it.
“Although GILD could probably have charged more given the prevailing desperation (what will the world tolerate?), the announced pricing seems consistent with prior messaging for broad access,” according to drug experts.
Shares of Gilead are up 14.7% so far this year. The stock trades at 11.5 times earnings projected over the next 12 months, above its 5-year average of 9.5 times earnings. Of the 30 analysts tracked by FactSet who cover the company, 10 rated it a Buy as of Tuesday morning.