Sovaldi With hepatitis C drug sales rising since 2014 by generating $5.7 billion in sales according to an earnings report from Gilead Sciences, consumers have pinpointed Sovaldi as source for the affluent growth (Tozzi, pg 1). Sovaldi, manufactured by Gilead Pharmaceuticals, is a revolutionary drug that has alienated itself from its competitors by curing around 90% of patients with Hepatitis C instead of resolving its symptoms, which until now was the only solution. (Mukhergee, pg 3) Although this deserves much praise and merit for a scientific breakthrough, consumers such as insurance companies and state Medicaid programs are raising other issues. This drug is priced at an eye opening $84,000 for a 12-week treatment, or $1,000 per pill, and has successfully cured 9,000 patients suffering from Hepatitis C following this treatment, according to Gilead (CSRP, pg 2). Across the Pacific, the same treatment is being offered to patients in India for 1% of the price sold in the USA. This raises many questions economically and scientifically since there is still ongoing research of its effectiveness; however, the burning question that needs to be addressed today in order to provide my recommendation for Sovaldi is how the benefits outweigh the cost in the long run.
An estimated 3.2 million people suffer in the USA from Hepatitis C and that number is still expanding (Sanger-Katz, pg 1). When performing scientific studies, we have learned that in order to evaluate the efficacy of a substance, you have to remove it from the equation first and examine the outcome. Without Sovaldi on the market, millions of patients are forced to rely on other treatments that only tackle the symptoms of Hepatitis C, leaving the root of the problem unresolved. Over time, 60 percent of these people will end up with chronic liver disease and as many as 20 percent will end up with cirrhosis along with over complications such as joint pain and kidney disease(Mukherjee, pg 3). In addition, a small group of patients may require a liver transplant who are diagnosed with end-stage disease costing nearly $600,000 (Mukherjee, pg 3). In juxtaposition, that is 86 percent more expensive, not including the cost of medications and follow-up care required to live with the disease. There is an undeniable risk associated with providing Sovaldi and overpaying for its benefits. However, by removing Sovaldi as a possible treatment option, the financial burden of treating Hepatitis C still exists coupled with an emotional one for patients who would have to continue living with it.
Sovaldi is like buying a house with cash up front versus allowing the costs to pile up slowly over time. Consumers do not understand that Hepatitis C treatment options currently have compounding effect. In comparison to HIV, the lifetime cost of treating someone is around $380,000, according to estimates from CDC, which is not alarming to other critics (Sanger-katz, pg 1). $84,000 for a one time treatment is a reasonable option for patients. Dissecting it further down the timeline, we are in a volatile competitive market. The price of $1,000 per pill will not exist ten years later especially after the eventual emergence of a generic brand. A company’s IPO is not equivalent to its EPS a few years after production. The high cost initially for the drug will change and can only decrease in the future.
Today, I would like to recommend Sovaldi as it will welcome more subscribers towards Kaiser, particularly those with a higher income that can afford the treatment. Overtime, it will generate revenue for Gilead and lower the cost of Sovaldi. It will promote the importance of health worldwide by making this decision. Most importantly, the fatality rate will decrease substantially making happier and healthier patients. Kaiser Permanente will become the health care provider that sets the tone for other providers to follow.