Last week, two leading Senate Finance Committee members released the results of an investigation into the pricing and marketing practices of Sovaldi and Harvoni, two Hepatitis C drugs produced by Gilead Sciences. The study found that the $84,000 price for a single course of treatment for Sovaldi was pursued to maximize revenue. Similarly, the price for Harvoni–$94,000 for a single course–was created based on the Solvaldi price.
Senator Ron Wyden, Ranking Member of the Committee, said, “Gilead pursued a calculated scheme for pricing and marketing its Hepatitis C drug based on one primary goal, maximizing revenue, regardless of the human consequences.” Senator Chuck Grassley, a senior Committee member, also expressed concern stating, “This report sheds light on one example of the pricing decisions made by one company with a new prescription medicine that entered the market without competition in high demand. This might be an example that received the most attention in some time, but it won’t be the last.”
Other key findings from the study show that Gilead justified the cost of Sovaldi based on price-per-cure, and the price of Sovaldi was set high to ensure a high price for Harvoni. According to the report, the resulting cost burden to Medicare, Medicaid, and the Bureau of Prisons was significant.