COVID-19 treatments to enter the market with a hefty price tag
Source: AP
Updated 5:41 PM EDT, October 27, 2023
WASHINGTON (AP) The COVID-19 treatments millions of Americans have taken for free from the federal government will enter the private market next week with a hefty price tag. Pharmaceutical giant Pfizer is setting the price for a five-day treatment of Paxlovid at $1,390, but Americans can still access the pills at no cost -- for now. The less commonly used COVID-19 treatment Lagevrio, manufactured by Merck, also will hit the market next week.
Millions of free, taxpayer-funded courses of the pills will remain at pharmacies, hospitals and doctors offices across the country, U.S. Health and Human Services officials said Friday. People on private insurance may start to notice copays for the treatments once their pharmacy or doctors office runs out of the COVID-19 treatments they received from the government.
The U.S. government initially inked a deal with Pfizer to pay more than $5 billion for 10 million courses of Paxlovid in 2021. Under a new agreement, reached last month between Pfizer and the federal government, people on Medicaid, Medicare or those who are without medical insurance will not pay any out-of-pocket costs for the treatment through the end of next year.
Pfizer will also offer copay assistance for the treatment through 2028. The Department of Veterans Affairs, the Department of Defense and Indian Health Service will still be able to access Paxlovid the government has on hand. The government will also get 1 million treatment courses to keep in its stockpile.
Read more: https://apnews.com/article/covid19-paxlovid-treatment-coronavirus-drugs-5ea6124208e915382c40303bd6d749ef

Farmer-Rick
(12,096 posts)The Filthy-rich capitalists use government funded research to develop their medicines.
They then turn around and force people to pay, pay, pay for life saving treatments. Ofcourse no matter how high they set the price, people on the verge of death are going to pay.
sarcasmo
(23,968 posts)angrychair
(11,246 posts)I mean the government, likely many governments, paid for all the R&D and production costs. I'm not exactly sure why we have now we have to pay $1,400 when there is no costs recover needed. It's just pure price gouging.
BumRushDaShow
(161,505 posts)in some cases significant ones (the Moderna effort was one in particular). But that doesn't cover the entire process nor all of the financial outlays, including general R&D, raw materials, dosing types/forms/amounts, the clinical trials, batch QAs, cost of facilities (lab space is always exorbitant per sqft), equipment/maintenance, etc.
However we also know the "free market" system here allows them to charge what they want.
angrychair
(11,246 posts)But I was under the impression that the government paid all the costs involved in the vaccine R&D, facilities and production costs, as I understood it there were none of the normal upfront costs to either company to produce the vaccine.
I did find this NIH white paper summary that gives a breakdown of the history and development of mRNA and the SARS-CoV-2 vaccine.
NIH, government researchers and taxpayer dollars seems to have funded all or almost completely all of that development and costs of trails and production.
NIH paper from March, 2022:
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8426978/
BumRushDaShow
(161,505 posts)In reference to your link - like many R&D efforts - you will have both colleges and universities (like what was in your link pointing to researchers here in Philly at Penn) apply for research grants or similarly, individuals or groups conducting R&D at various product manufacturers (drugs, devices, cosmetics, biologics, etc) can apply for NIH grants.
In fact, with respect to the Penn researchers who ended up winning Nobel prizes at the beginning of this month, they were having difficulty getting their work off the ground and getting grants.
Neither work for pharma companies, but they evolved the concept of the practical use of mRNA for vaccines.
The closet involvement that the government had (including actually participating in partnership with the R&D) was for Moderna's vaccine AND the feds obtained patents for the work that was done in the development, including what would be the sequencing techniques to actually use mRNA in a viable, safe and effective vaccine.
That is of course when a dispute occurred when Moderna tried to cash in and leave their benefactors (and co-patent-holders) out. I just found one update on that -
Moderna has paid $400 million to the government for a chemical technique key to its vaccine. But the parties are still locked in a high-stakes dispute over a different patent.
By Benjamin Mueller
Feb. 23, 2023
As Moderna racked up tens of billions of dollars in sales of its coronavirus vaccine, the company held off on paying for the rights to a chemical technique that scientists said it had borrowed from government-funded research and used in its wildly successful shot. But Moderna and the government have now reached an agreement. The company said on Thursday that it had made a $400 million payment for the technique that will be shared by the National Institutes of Health and two American universities where the method was invented.
The payment, disclosed in Modernas latest earnings report, represented a small victory for the experts and activists who long argued that the company had resisted acknowledging its debt to the government and academic researchers.
If pharmaceutical companies are going to make billions of dollars, it seems reasonable that the scientists who helped generate some of the initial intellectual property and the universities also share some of the gains, said Jason McLellan, a structural biologist who in 2017 led efforts to devise the technique in question as a researcher at the Geisel School of Medicine at Dartmouth. A lot of that will now be reinvested for future development and research.
Moderna is still locked in a separate high-stakes dispute with the N.I.H. over who invented the central component of the vaccine, the genetic sequence that helps recipients produce an immune response. The N.I.H. said its scientists, some of whom had been collaborating for years with Moderna, had helped to design that sequence. Moderna also received nearly $10 billion in taxpayer funding to develop and test the vaccine, and to provide doses to the federal government. The company has sold roughly $36 billion worth of coronavirus vaccines worldwide.
(snip)
https://www.nytimes.com/2023/02/23/science/moderna-covid-vaccine-patent-nih.html
No paywall (gift)
Dr. Fauci was actually personally involved in the above with the partnership between the feds (immunologists and vaccine researchers working under his office in NIAID) and Moderna. Because of that (and my being a retired fed labby) that is why I went with Moderna for what has now been 6 shots (my most recent one being this past Wednesday).
Moderna received an official full approval of its BLA (Biologic License Application) for "Spikevax" (their brand name for it) last year.
But note that the federal government isn't cranking out batches of vaccine nor purchasing vials, stoppers or labels for them, etc., nor has production facilities with filling machines or temperature-controlled storage freezers/warehouses to store finished products. And because the variants change in circulation throughout the year, the manufacturers have to determine what is circulating and likely to still be in circulation once the vaccine is ready for distribution (generally in the fall), go through the re-sequence of the base entity, and then test that for effectiveness in mini-trials, etc.
So there is an ongoing cost associated with manufacturing, Q&A testing, and periodic revisions of batches.
And in this case, other than grants to Pfizer, Novavax, and Janssen/J&J (now pulled) and GSK (also pulled), etc., who were part of or later participants in that "Operation Warp Speed" thing, the other companies generally did their own thing.
One of the biggest issues the government has had with pharma is their overall REFUSAL to invest in and manufacture vaccines because in the scheme of their product sales, they are generally considered "loss leaders" and the government has usually had to beg them to make them. COVID-19 turned the tables on that sentiment due to the pandemic being a global nightmare with a significant need. But as interest in COVID-19 wanes globally (even if the virus hasn't done so), it's something that they are going to try to milk as long as they can before this type of product fades into the background along with the other vaccines, with an uptake only by a small fraction of the world populace.
angrychair
(11,246 posts)For pharma and other product development we fund or do. No matter how you slice it, a lot of the mRNA and vaccine development was done on the back of either outright NIH research or directly or indirectly funded through government grants.
If the government is the one to pony up the money or the foundational research but these corporations are the ones making billions from it, especially when we are paying more than any country on Earth for it, that is an abusive relationship we need to remove ourselves from.
BumRushDaShow
(161,505 posts)has been long a dream for those of us who are from the left - complete government-controlled health (all manner), with tight controls (including pricing) over health-related products, goods, and services. And at this point, it's not happening.
There was a saying that my Political Science/history major mom always told us growing up - "This is a capitalistic country and 'capital = money'".
When McCain-Feingold was gutted thanks to Citizen's United in 2010, Congress should have spent their time FIXING it to pass the muster of the-then SCOTUS so we would have some kind of campaign finance reform to put checks on these big corporations paying off our elected officials. But that didn't happen, the SCOTUS got even more right wing, and now we're stuck... at least for now.
angrychair
(11,246 posts)I just don't understand why, especially from these so-called "fiscal conservatives" point of view, why certain industries get to have their cake and eat it too. They seem perfectly fine for industries like pharma and oil and gas, to get millions, if not billions, of tax payer dollars but give little to no benefit to the taxpayers that footed that bill (a viable product doesn't count).
Not just pharma but DARPA and government funded research incubators like the new one being spun up in Newport News, VA, that fosters R&D and product development start ups on the taxpayer's dime.
There are likely hundreds of products that taxpayers should have received financial benefits from, at least in some small part, but instead they were commercialized and taken to market by a corporation with zero benefit to the taxpayers. It's insane to me.
BumRushDaShow
(161,505 posts)The COVID vaccines are an obvious "benefit" as are literally thousands of other life-saving therapeutics that are successfully in use today.
But what you see in these "early stages" of the rollout of a medical product, is what happens while the progenitor attempts to recoup costs knowing that not long from now, generics will be out there, often at a fraction of the price.
Big pharma has tended to game that system by buying up and/or already owning companies that produce generics, so they can rack in $$$ offering both. But all in all, that market is not of "little benefit". They generally have patent protection for upwards of 20 years after patent issuance and in most cases, the continuing development, formulations, clinical trials, reformulations, etc., can eat up over half that time, leading to maybe 5 - 10 years of exclusivity where they can gouge) before the patent expires, and generics are generally approved.
IMHO, what is of "little benefit" is the entire MIC. Sure they often innovate some cool tech that can have other uses, but little of that is immediately "beneficial" to the average taxpayer.
usaf-vet
(7,717 posts)....helped them fine-tune the Covid medications through the pandemic.
I agree it is ridiculous that the drug companies are now going to reap the benefits by bleeding each and every person who needs this medication.
Blues Heron
(7,763 posts)Thats what it boils down to - they know they have us over a barrel.
Ms. Toad
(37,856 posts)Those on Medicare from getting the assistance.
I have a friend with pancreatic cancer who had to return to work-based insurance because her medications put her in the donut hole, and her meds cost thousands of dollars each month. Copay assistance was available from the manufacturer for those with insurance, but expressly excluded anyone whose insurance was through Medicare. After helping her search for any way to avoid the need to return to work-based insurance (especially at a time when her ability to work was not clear), I spent some time checking other copay assistance programs. They all exclude those on Medicare.
If this drug follows the norm, those who need the assistance most may be unable to access it after the period during which it is free to those on Medicare.
Magoo48
(6,643 posts)Not only are we racing into climate catastrophe dystopia, the greed fucks are gonna gouge us all the way there.
The system is so broken that nationalization is likely the only cure.
Blues Heron
(7,763 posts)Thats a nice bike, a laptop computer, a fine camera with zoom lens, any number of nice expensive items. A handful of pills doesnt really qualify for that pricepoint.
C Moon
(13,240 posts)IcyPeas
(24,392 posts)