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Morning Briefing

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Friday, Dec 12 2014

Full Issue

Philadelphia Transit Agency Sues Gilead Sciences To Challenge Sovaldi's Price Tag

The transit system alleges that Gilead is engaging in price gouging with the drug to treat hepatitis C. The cost of a normal, 12-week course of treatment with Sovaldi is about $84,000, or $1,000 a pill.

Philadelphia鈥檚 transit system is taking on Gilead Sciences Inc. over its sky-high pricing of the breakthrough hepatitis C drug Sovaldi. The Southeastern Pennsylvania Transportation Authority alleged in a lawsuit filed Tuesday in federal court in Philadelphia that Gilead is engaging in 鈥減rice gouging鈥 by charging $1,000 a pill, or $84,000 for a standard 12-week treatment. (Pfeifer, 12/11)

The federal lawsuit from Philadelphia's public transit agency appears to be the first directly challenging the price of Sovaldi, which costs $84,000 overall during a normal 12-week course of treatment in the United States. Since Gilead Sciences launched Sovaldi last year, the drug has shattered sales records and set off a contentious debate about how to make treatments affordable and accessible while also encouraging drugmakers to invest in new drug development. (Millman, 12/11)

In other pharmaceutical industry news -

A closely watched trial that many hoped would help clarify a contentious battle over access to generic drugs instead ended in disappointment last week. In fact, the outcome only seems to have underscored the difficulty in sorting out so-called pay-to-delay deals, a topic that has embroiled the pharmaceutical industry, regulators and the courts for years. (Silverman, 12/11)

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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