Two high-ranking senators have sent a letter to Foster City, Calif.-based Gilead Sciences demanding answers regarding the $1,000 a pill price tag for hepatitis C drug Sovaldi.
The typical 12-week drug regimen of Sovaldi costs $84,000, but some patients require the drug for a longer period of time. Guidelines also suggest taking the drug along with others, adding to the overall care costs.
Sovaldi has a success rate of more than 90 percent, and
Sens. Ron Wyden (D-Ore.), chairman of the Senate Finance Committee, and Chuck Grassley (R-Iowa), the Judiciary Committee's ranking member, sent the letter seeking justification from
"Given the impact Sovaldi's cost will have on Medicare, Medicaid and other federal spending, we need a better understanding of how your company arrived at the price for this drug," the Senators wrote in the letter.
Sovaldi is the best treatment for hepatitis C currently available on the market to treat the 3.2 million people in the
It is estimated Solvaldi could see between $5 billion and $9 billion in sales during its first year on the market, one of the largest sales for a new drug's first year.
"The large patient population combined with the high price of each individual treatment creates a question as to whether payors of healthcare, including Medicare and Medicaid, can carry such a load," said Sens. Wyden and Grassley in the letter.
Sovaldi's price tag is affecting private health insurers as well. UnitedHealth Group spent $100 million — significantly more than expected — on hepatitis C drugs during the first quarter of this year, and Sovaldi drove the high spending.
More Articles on Sovaldi:
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Hepatitis C Drug Costs More Than 1K a Pill
Sovaldi Drug Sales Could Reach $9B in First Year