Gilead has announced an agreement with the US government to reduce drug prices in the US.
As part of the three-year agreement, Gilead has agreed to take a series of actions that align with the government’s new drug pricing strategy. This includes discounts on certain existing medicines within the US Medicaid programme, including medications to treat HIV, hepatitis C, hepatitis B and COVID-19.
These discounts will ensure that US prices reflect prices paid in other developed nations. In addition, the pharma company will work to ensure that future drugs are priced in line with other developed nations.
Gilead will also launch a direct-to-patient programme where individuals with a prescription can obtain Epclusa, the company’s hepatitis C treatment, at a discounted cash price.
The agreement means that US pharmaceutical tariffs on the company will be delayed for three years.
This builds on the partnership between Gilead and the US government to provide lenacapavir, Gilead’s HIV prevention medicine, over the next three years at no profit to up to two million individuals in severely affected countries around the world.
Gilead also recently announced a $32bn investment in the US R&D and manufacturing infrastructure over the next five years. The investment is expected to generate $43bn in national economic value, as well as creating over 3,000 jobs.
Daniel O’Day, chairman and CEO of Gilead, commented: “This agreement reflects a foundational commitment to both affordability and future innovation, a commitment that we have long seen as essential to shaping the future of healthcare.
“The progress toward expanding access and increasing investment in US innovation will meaningfully contribute to America’s health and economic priorities.”