by Judy Packer-Tursman
Many payers likely are keeping a close eye on how the pharma
industry reacts to Gilead Sciences, Inc.'s Sept. 24 announcement that it
intends to soon launch steeply discounted generic versions of two of its
chronic hepatitis C virus (HCV) drugs. The biopharma company says these
generics will become available in January 2019 in the U.S. — a move that PBM
Express Scripts Holding Co. describes as a win for payers and patients alike.
According to Gilead, its newly created subsidiary, Asegua Therapeutics, will sell authorized generics of Harvoni and Epclusa "at a list price of $24,000 for the most common course of therapy."
Francis Rienzo, interim CEO for Medicaid Health Plans of America, tells AIS Health that bringing HCV generics into the market may not change much initially because of "perverse" financial incentives for states to keep branded drugs on their Medicaid formularies — including higher rebates from drug manufacturers for brands as opposed to authorized generics. "So, does this mean there will be a lower net [cost]?" he asks. "I don’t know. There may not."
He adds that real change may occur if more HCV generics hit the market. "The thing that I don't know is, what are the other generics? When are they coming? That's important" in driving down prices, including the net price of branded drugs, he says.
According to Gilead, its HCV generics "are priced to more closely reflect the discounts that health insurers and government payers receive today. Insurers will have the choice of offering either the authorized generics or the branded medications for both Epclusa and Harvoni."
The company notes the generics could save up to $2,500 in out-of-pocket costs per treatment course for patients covered by Medicare Part D. Gilead says its HCV generics also will offer "substantial savings" to state managed Medicaid plans "that do not currently benefit from negotiated rebates" and "represent a significant number of people in need, potentially opening up access to our medications to beneficiaries who were previously denied coverage."
According to Gilead, its newly created subsidiary, Asegua Therapeutics, will sell authorized generics of Harvoni and Epclusa "at a list price of $24,000 for the most common course of therapy."
Francis Rienzo, interim CEO for Medicaid Health Plans of America, tells AIS Health that bringing HCV generics into the market may not change much initially because of "perverse" financial incentives for states to keep branded drugs on their Medicaid formularies — including higher rebates from drug manufacturers for brands as opposed to authorized generics. "So, does this mean there will be a lower net [cost]?" he asks. "I don’t know. There may not."
He adds that real change may occur if more HCV generics hit the market. "The thing that I don't know is, what are the other generics? When are they coming? That's important" in driving down prices, including the net price of branded drugs, he says.
According to Gilead, its HCV generics "are priced to more closely reflect the discounts that health insurers and government payers receive today. Insurers will have the choice of offering either the authorized generics or the branded medications for both Epclusa and Harvoni."
The company notes the generics could save up to $2,500 in out-of-pocket costs per treatment course for patients covered by Medicare Part D. Gilead says its HCV generics also will offer "substantial savings" to state managed Medicaid plans "that do not currently benefit from negotiated rebates" and "represent a significant number of people in need, potentially opening up access to our medications to beneficiaries who were previously denied coverage."
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