Biotech
Thursday, October 19th, 2023 1:54 pm EDT
Key Points
- Pfizer plans to price a five-day course of its Covid antiviral drug Paxlovid at $1,390 when it transitions to the commercial market later this year. This price, more than double what the federal government paid, has raised concerns about access to the treatment among health experts and patient advocates.
- Despite the high list price, health insurance plans are expected to pay significantly less, resulting in likely small or no out-of-pocket costs for patients. Pfizer has committed to working with payers to lower copays and intends to subsidize copays for people with commercial insurance through at least 2028.
- Pfizer announced a $7 billion reduction in expected revenue from Paxlovid, partly due to the return of doses labeled for emergency use by the federal government. As a result, Pfizer has revised its overall revenue outlook for 2023 to be between $58 billion and $61 billion, down from the previous guidance of $67 billion to $70 billion, primarily due to the impact of Covid products.
Pfizer will set the list price for a five-day course of its Covid antiviral drug Paxlovid at $1,390 when it transitions to the commercial market later this year. This price, more than double the $529 paid by the federal government for Paxlovid, has raised concerns among doctors, health experts, and patient advocates that it may limit access to the treatment. However, health insurance plans are expected to pay significantly less than the list price, potentially resulting in small or no out-of-pocket costs for patients. Pfizer has also committed to working with payers to reduce copays for patients and intends to subsidize copays for commercially insured individuals at least through 2028. Despite the price concerns, Pfizer’s goal remains to ensure broad and equitable access to its medicines, and the company is focused on achieving the best possible formulary placement for Paxlovid. Additionally, Pfizer announced a $7 billion reduction in revenue expectations for Paxlovid, citing the return of doses labeled for emergency use by the federal government. This adjustment led to a lower revenue outlook for Pfizer in 2023, now expected to be between $58 billion and $61 billion, down from the previous guidance of $67 billion to $70 billion, attributed solely to the impact of Covid products.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/18/pfizer-to-price-covid-drug-paxlovid-at-1390-per-course-.html
