Pfizer to price Covid drug Paxlovid at $1,390 per course

Paxlovid, Pfizer’s antiviral medicine to deal with the coronavirus illness, is displayed on this image taken on Oct. 7, 2022.

Wolfgang Rattay | Reuters

Pfizer will price a five-day course of its Covid antiviral drug Paxlovid at $1,390 when the corporate begins to transition it to the commercial market later this yr.

An organization spokesperson on Wednesday confirmed the price, which was first reported by The Wall Street Journal. That record price, which is earlier than rebates and different reductions to insurers and pharmacy profit managers, is greater than double the $529 the federal authorities paid for Paxlovid.

The authorities has bought and distributed Paxlovid to the general public at no cost since December 2021, when the FDA first licensed the therapy. But starting in 2024, Pfizer will promote Paxlovid straight to well being insurers, which comes as demand for Covid vaccines and coverings slumps nationwide.

Doctors, well being specialists and affected person advocates have raised considerations {that a} larger price will curb entry to the life-saving therapy, which has been proven to cut back the chance of extreme illness and loss of life from Covid amongst susceptible sufferers, similar to these with diabetes, coronary heart situations or a weakened immune system. 

But medical health insurance plans will doubtless pay a lot lower than the almost $1,400 record price for Paxlovid, that means sufferers will most likely have small or no out-of-pocket prices. Pfizer additionally famous that it’s working with payers to decrease copays for sufferers.

Pfizer plans to subsidize copays of people who find themselves commercially insured at least by means of 2028.

“As all the time, Pfizer’s purpose is to guarantee broad and equitable entry to our medicines. We are working diligently with payers to obtain the absolute best formulary placement for PAXLOVID, leading to low OOP prices for sufferers,” a spokesperson for the corporate mentioned in an announcement to CNBC.

On Friday, the corporate additionally mentioned it expects revenue from Paxlovid to are available in $7 billion decrease than beforehand anticipated, partly due to the return of doses labeled for emergency use by the federal authorities.

Overall, Pfizer now expects 2023 gross sales of $58 billion to $61 billion, down from its earlier steering of $67 billion to $70 billion. Pfizer mentioned it reduce its income outlook “solely due to its Covid merchandise.”

— CNBC’s Angelica Peebles contributed to this report.

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