Pfizer, which manufactures the drug, announced Thursday a price tag of $1,390 for a five-day course of Paxlovid, which has been sold to the federal government for $529 since it received emergency use authorization in December 2021.
The U.S. Department of Health and Human Services has set a cutoff date of Dec. 15 for extending free access to Paxlovid, a groundbreaking COVID-19 treatment shown to curtail hospitalization rates and mortality risks.
The government plans to transition the drug to the commercial market by November, ensuring continuous access for uninsured individuals and beneficiaries of Medicare and Medicaid programs through 2024, in collaboration with Pfizer.
Pfizer defended the price increase in a statement.
“Pricing for Paxlovid is based on the value it provides to patients, providers, and health care systems due to its important role in helping reduce COVID-19-related hospitalizations and deaths,” the company said, adding it will offer rebates and discounts to insurers and pharmacy benefit managers.
“The list price does not necessarily reflect the price a patient will pay,” Pfizer said, mentioning its commitment to ensuring broad access to the drug. “We are working diligently with payers to achieve the best possible formulary placement for Paxlovid, resulting in low out-of-pocket costs for patients.”
Under the terms of the agreement with the government announced Friday, Pfizer has committed to operating a patient assistance program for uninsured or underinsured individuals from 2025 to 2028, and a co-pay assistance program will be in place for commercially insured individuals until 2028.
The Chronicle was not able to reach any Bay Area health insurers willing to say how their coverage of Paxlovid could be affected by the price change.
A combination of antiviral drugs nirmatrelvir and ritonavir, Paxlovid reduced severe COVID-19 risks by up to 90% in clinical trials when administered within five days of a positive coronavirus test. Some preliminary studies suggest its potential in reducing long COVID severity and risk.
While initially prescribed for high-risk individuals, updated guidelines recommend Paxlovid for anyone aged 12 and above.
Pfizer similarly increased its COVID-19 vaccine prices — from $20 to $120 — when the medicine transitioned to the commercial market after the end of the national emergency related to the pandemic in April.
Eric Topol, director of the Scripps Research Translational Institute and a leading voice on COVID-19, has equated the move to “price gouging.” Many public health experts worry that the price increase will create an additional barrier to accessing Paxlovid, which doctors are already hesitant to prescribe to healthy and younger individuals.
Approximately 15 million Paxlovid courses have been distributed to U.S. pharmacies, serving around 10 million Americans. There are about 1 million doses available nationwide.
Despite a declining trend in COVID-19 rates in the United States following the summer surge, health officials are bracing for potential winter spikes in cases.
To date, nearly 1.15 million Americans have lost their lives due to COVID-19 since the onset of the pandemic. This figure includes about 52,000 Americans who have died this year.
Reach Aidin Vaziri: avaziri@sfchronicle.com
Read More:Pfizer to charge $1,390 for Paxlovid COVID drug on open market
2023-10-19 23:03:06