Navigate this market better. Subscribe for FREE stock alerts and information.

Friday, July 11, 2014

U.S. senators ask Gilead to explain cost of Sovaldi hepatitis drug, (NASDAQ: GILD)

Two members of the U.S. Senate Finance Committee, including Chairman Ron Wyden, on Friday asked Gilead Sciences Inc to defend the more than $80,000 cost of its breakthrough treatment for hepatitis C, citing the expense to federal healthcare programs."Given the impact Sovaldi's cost will have on Medicare, Medicaid and other federal spending, we need a better understanding of how your company arrived at the price for this drug," the lawmakers said in a release. "It is unclear how Gilead set the price for Sovaldi."Sovaldi's cost can soar to $168,000 in patients that need longer treatment periods, not including the costs of other drugs used with it, the senators said.Gilead acquired Sovaldi (sufosbuvir) in 2012 by paying more than $11 billion for Pharmasset Inc. The deal began to bear fruit after Sovaldi produced stellar results in late-stage clinical trials and was approved by U.S. regulators late last year.

Gilead Sciences, Inc. (Gilead) is a research-based biopharmaceutical company that discovers, develops and commercializes medicines. Shares of GILD traded higher by 0.2% or $0.18/share to $89.12. In the past year, the shares have traded as low as $55.76 and as high as $89.25. On average, 13311300 shares of GILD exchange hands on a given day and today's volume is recorded at 4764385.