The U.S. government provided Paxlovid to citizens at no cost, having paid about $530 for each course.
On Wednesday, Pfizer said that when government supplies of the COVID-19 antiviral therapy Paxlovid run out, it would go to commercial sales with a price tag of around $1,400 per five-day course in the United States.
On Wednesday, Pfizer (PFE.N) announced that when commercial sales of the COVID-19 antiviral therapy Paxlovid begin when government supplies run out, the price in the United States will be about $1,400 per five-day course—more than twice what the government presently pays for it.
Pfizer stated in an email that the new list price is $1,390 per course and does not include rebates or other savings given to insurers and pharmacy benefit managers. The U.S. government provided Paxlovid to citizens at no cost, having paid about $530 for each course.
According to Pfizer, patients in the United States who receive Paxlovid—the most often recommended at-home treatment for COVID-19—can access it for free until the end of the year.
The medication will also remain free of cost for individuals covered by the Medicare and Medicaid programs through the end of 2024, as well as for patients who are uninsured or have inadequate insurance through 2028, per an agreement with the government.
Paxlovid reduced hospitalizations and deaths among unvaccinated individuals at risk for severe disease by almost 90% in a clinical trial conducted by Pfizer. In a different trial, Pfizer failed to demonstrate a benefit for individuals at standard risk, including those who had received vaccinations.
The Institute for Clinical and Economic Review (ICER), a prominent watchdog on U.S. drug prices, recommended a price range of $563 to $906 per course for Paxlovid last year, based on the medication’s benefits and value to patients.
Although it still possessed a substantial supply, the United States had purchased some 24 million courses of oral two-drug therapy from Pfizer. However, last week, arrangements were made to return 7.9 million courses. The company’s prediction for revenue for the entire year was also lowered because of lower-than-expected sales of its COVID-19 products.
As per the agreement, Medicare, Medicaid, underinsured, and uninsured patients will cover the supply cost using a credit for the returned Paxlovid doses.
Since last year, the demand for the drug has decreased. Based on data from the U.S. government, approximately 7 million medicine courses were administered to patients in 2022. Approximately 3.4 million courses had been taught in 2023 as of October 1.
The Wall Street Journal was the first to report on the revised list price.
