ReallyNotAVampire
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I posted the link to this in a comment thread on a @JectBlack post, but I really feel like more people should have the chance to read it if they haven't yet.
https://imgur.com/gallery/gmEnH96
This is the CEO rationalizing how they decided on the price point for a potentially life saving medication. They're either grossly out of touch with regular people, or they are just so morally bankrupt that they don't care as long as they get significantly wealthier under a system designed to benefit them.
Unbridled late stage capitalism is a problem. Healthcare and education should not be run as businesses, it inevitably ends up being counter productive. But what do I know, I'm just a Morty.
Here's the link to the press release if you want that.
https://www.gilead.com/news-and-press/press-room/press-releases/2020/6/an-open-letter-from-daniel-oday-chairman--ceo-gilead-sciences
Changemydiaper
Going with morally bankrupt. He could say because fuxk you and we can't do a thing about it. Thanks Gov't!
hezroncarverofgravenimages
Aww did someone get COVID-19?
Da3n
How much of that 1 billion in development was subsidised? At this price, how many patients will it take to recoup the cost?
ReallyNotAVampire
At a rough average price of 2730/person they'd make 1bil after 366k people.
ReallyNotAVampire
And I have seen 70-99 million for the amount it was subsidized.
Da3n
Thank you. I was having a hard time finding any numbers for the subsidy.
designedbyhumans
This dude refused to patent his polio vaccine of course others tried to. Your link makes me sad. https://en.wikipedia.org/wiki/Jonas_Salk
keithhdz10
Costs $10 a dose and we the taxpayer subsidized it. Fuck them.
HandoB4Javert
Actually less than $10
ReallyNotAVampire
Yeah, reading through his rationalization just had me thinking, "are you serious?" the whole time.
thatwastooclose
They lost me at how 390=520
AndTheTruthWillSetYouFree
Upcharging to get ~$390 in the US b/c gov and insurance don't pay full price. Like how sleazy mall jewelry stores can afford 85% off sales.
ReallyNotAVampire
390 for countries with socialized healthcare. 520 for privatized Americans.
thatwastooclose
Right but I wanna see their math on how that works out.
Templar11709
$390 is the intended price, Govt programs expect discounts so you have to charge more to get them to agree to the original price point
ReallyNotAVampire
The way prices for medical services in our country are figured out is insane.
speakertoidiot
Please explain how what the drug should be priced at. Include R&D, facilities, testing, materials, mfr and distribution. Show your work.
xmaneds
was taxpayer funded, so: 0, 0, 0. Manufacturing & distro is some money.
Templar11709
Was not tax payed funded, please stop spreading that, 70 million does not cover 1 billion
ReallyNotAVampire
https://www.fiercepharma.com/marketing/gilead-s-covid-19-therapy-remdesivir-worth-4-460-per-course-says-pricing-watchdog
ReallyNotAVampire
"Even at $1,000 per patient, less than a quarter of ICER's fair price, Gilead could rake in $1 billion in sales this year."
ReallyNotAVampire
And nearly 100 million of their funding came from the public. Plus it's not like the scaling up they're doing is a one time use.
thatwastooclose
I wonder how this price compares to other drug prices that give a similar outcome for other diseases, such as decreasing hospital stay?
ReallyNotAVampire
In normal capitalist times, sure I guess. Get what you can get. This is a global pandemic. Humanity's needs should outweigh your wallet's.
thatwastooclose
I didn't say I thought it was correct, I was just curious about the comparison.
ReallyNotAVampire
I wasn't trying to accuse you, just saying that those defending the capitalist system are missing the point.
OnlyBones
Damn, why are so many people lining up to suck big pharmas dick?
ReallyNotAVampire
"YoU cAnT dECiDe HoW MuCH mOneY I MaKe!!" as they reach their hands into our nearly empty pockets.
ngb64ff
This is exactly right. This company spent money developing this, they deserve to profit from it. It's not fair to steal someone's work....
ReallyNotAVampire
Steal, no. Price gouge, also no. Needs to be a middle. If they can still make a hefty profit at 1k a person why are they charging 4X that?
ngb64ff
How do you know how much they need to charge to make a profit? Do you have access to their accounting?
ReallyNotAVampire
Simple math said they've "invested a billion" and they're planning on selling to hundreds of millions of people. At 2700 they have positive
Templar11709
Only expected to manufacture (at best) 1 million courses for sale in 2020, that is after donating 1.5 million courses (at a cost of 75 mill)
ReallyNotAVampire
Returns after 366k people. So the rest is straight profit.
ngb64ff
just because you want it. There is a cost associated with medical advancements. The company that fronts the cost gets the profit.
keithhdz10
They profit at $10 a dose, what’s it called when they charge $300?
ngb64ff
There is more that goes into it than manufacturing cost. You have to factor in the millions they spent developing the drug.
keithhdz10
I know reading can be hard, but read the article and then you can see why the set the price as they did
ReallyNotAVampire
They can make profit at a fraction of what they're charging. That's the point. They are up charging drastically in a time of crisis.
ReallyNotAVampire
Imagine a cruise line charging you to use the life boats as it's sinking. That's what this feels like.
speakertoidiot
They do. The lifeboat is priced into the cost of the ticket.
ngb64ff
That is not the same analogy. A correct one would be imagine a boat manufacture charging you to buy their boat.