Even if Gilead would likely make at least a 100% profit selling to a LIC for $80, it becomes politically incredibly difficult to justify your $28,000 price tag in the US.
Here's a clip of the BIO lobby saying just this in a USITC hearing. 12/
I've walked thru the economic logic here, but Gilead obviously does not say this out loud. They don't really have a good reason not to sell to MSF, which is why they landed on negotiating supply contracts is "a lot of work" (actual thing they said). 13/
www.doctorswithoutborders.org/latest/preve...
I've walked thru the economic logic here, but Gilead obviously does not say this out loud. They don't really have a good reason not to sell to MSF, which is why they landed on negotiating supply contracts is "a lot of work" (actual thing they said). 13/
www.doctorswithoutborders.org/latest/preve...
You also have to think about price pressure: HIV is Gilead's core business, and despite the HIV burden not being heaviest in the US, 81% of Gilead's revenue comes from the US alone (bc prices are so high, even if volumes are low.) 11/
In 2027! But the drug is needed today.
Theoretically yes, there are a few pathways. But they require nat'l authorities (not MSF) actioning CLs, which takes time (as well as time to develop the drug). In territories where Gilead has granted a VL, generics are preparing to launch, but this isn't expected until at least next year.
But you have to think abt a potential sale in terms of their portfolio: a 10,000% markup sounds good, unless your other drugs that are vying for time and space on production lines yield you a 70,000% markup. This is why drug companies outsource manufacturing, engage in licensing deals, etc. 10/
Doctors Without Borders calls Gilead ‘unconscionable’ for refusing to sell HIV prevention drug to organization.. statnews.com/pharmalot/20... #pharma #HIV #AIDS #pharma #Gilead
At this point, I'm taking of my MSF hat and putting on my academic economist hat to step back and try to make sense of this for folks. (Again, to be clear - this is speculation about markets and I do not speak for MSF).
Why would a pharma company like Gilead forego a profitable sale? 🤔8/
To understand this, you have to think about opportunity costs. Gilead told us in meetings that they expect prices to fall below the $40/year price generics have offered - this isn't an expensive drug to manufacture. 9/