Shares of Gilead Sciences (NASDAQ: GILD) soared nearly 4% in the premarket trading session after the pharma giant announced the pricing for its coronavirus treatment remdesivir.
Gilead said it plans to sell remdesivir for $390 per vial to governments “of developed countries”. Locally, the price for U.S. private insurance companies will be $520 per vial.
“At the level we have priced remdesivir and with government programs in place, along with additional Gilead assistance as needed, we believe all patients will have access,” Gilead CEO Daniel O’Day said.
According to Gilead’s projections, a typical U.S.-based patient with private insurance will pay $3,120 for treatment. Patients that are using government programs, like Medicare, will be charged less.
According to O’Day, the majority of patients need a 5-day treatment, which is based on using 6 vials of remdesivir.
“By the end of this year, we expect our investment on the development and manufacture of remdesivir to exceed $1 billion (U.S.) and our commitment will continue through 2021 and beyond,” O’Day added.
Gilead share price is trading over 3% in premarket trading following the remdesivir news. The stock price has been trading mostly sideways since the printing of the 2-year high above $85 in March.