Summary
Massachusetts AG Maura Healey struck a deal for Gilead to provide HCV drugs to state prisoners at a discount.
A thesis exists that the remaining U.S. HCV infecteds are disproportionately poor, homeless or incarcerated.
This could give other state AGs leverage to strike similar deals for incarcerated individuals.
It could extend GILD's HCV runway, but hurt its average sales price.
Massachusetts AG Maura Healey
Gilead (NASDAQ:GILD) appears to be on everyone's watchlist - from analysts to bulls, to bears to state attorneys general. Massachusetts Attorney General Maura Healey wanted Harvoni so badly for state prisoners that she threatened to sue Gilead if it didn't make the drug more affordable. Ms. Healey finally reeled in the big fish last week when she and Gilead agreed on discounts for HCV drugs:
Following threats to sue Gilead Sciences over the cost of its hepatitis C treatments, the commonwealth of Massachusetts has reached a deal with the drug maker for rebates for some of its residents who are infected with the chronic disease.
The deal, which begins Aug. 1., is expected to save the state a significant amount of money, but projected savings were not disclosed. However, the cost of hepatitis C drugs for about 2,800 people covered by MassHealth, which is the commonwealth's Medicaid program, has so far totaled about $318 million from late 2014 through early 2016, according to a statement from the agency. A MassHealth spokeswoman, however, said the state expects lower unit costs to be offset by more people being treated, so the state is not forecasting any change in net spending.
Harvoni will be the exclusive therapy for MassHealth members. Sovaldi and Bristol-Myers Squibb's (NYSE:BMY) Daklinza will be used to treat the rest. In exchange for discounts, Gilead was able to secure a near exclusive relationship with the state of Massachusetts. It appears to be a win-win for both parties.
Massachusetts AG Maura Healey struck a deal for Gilead to provide HCV drugs to state prisoners at a discount.
A thesis exists that the remaining U.S. HCV infecteds are disproportionately poor, homeless or incarcerated.
This could give other state AGs leverage to strike similar deals for incarcerated individuals.
It could extend GILD's HCV runway, but hurt its average sales price.
Massachusetts AG Maura Healey
Gilead (NASDAQ:GILD) appears to be on everyone's watchlist - from analysts to bulls, to bears to state attorneys general. Massachusetts Attorney General Maura Healey wanted Harvoni so badly for state prisoners that she threatened to sue Gilead if it didn't make the drug more affordable. Ms. Healey finally reeled in the big fish last week when she and Gilead agreed on discounts for HCV drugs:
Following threats to sue Gilead Sciences over the cost of its hepatitis C treatments, the commonwealth of Massachusetts has reached a deal with the drug maker for rebates for some of its residents who are infected with the chronic disease.
The deal, which begins Aug. 1., is expected to save the state a significant amount of money, but projected savings were not disclosed. However, the cost of hepatitis C drugs for about 2,800 people covered by MassHealth, which is the commonwealth's Medicaid program, has so far totaled about $318 million from late 2014 through early 2016, according to a statement from the agency. A MassHealth spokeswoman, however, said the state expects lower unit costs to be offset by more people being treated, so the state is not forecasting any change in net spending.
Harvoni will be the exclusive therapy for MassHealth members. Sovaldi and Bristol-Myers Squibb's (NYSE:BMY) Daklinza will be used to treat the rest. In exchange for discounts, Gilead was able to secure a near exclusive relationship with the state of Massachusetts. It appears to be a win-win for both parties.
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