Studies Prove Cost-Effectiveness of Gilead’s Hep C Drugs

Two new analyses showing Gilead Sciences’ Sovaldi and Harvoni hepatitis C drugs are largely cost-effective could convince payers to cover the therapies, which — at roughly $7,000 and $7,875 per week, respectively — are the costliest drugs ever marketed in the U.S.

In both studies, published last week in the Annals of Internal Medicine, the researchers say the high cost of treatment with Sovaldi (sofosbuvir) and Harvoni (sofosbuvir/ledipasvir) must be weighed against the costs associated with continued decline, liver failure and transplantation if patients don’t get the drugs.

For example, according to one analysis, the total cost of treating an HCV genotype 1 patient with Harvoni averages $115,000 versus $101,000 for usual care with boceprevir, peginterferon and ribavirin. But that doesn’t factor in the cost of increased fibrosis, liver failure and transplantation if patients don’t get the newer drugs. According to PhRMA, the U.S. healthcare system could save as much as $9 billion a year by preventing expensive hospitalizations and avoiding thousands of liver transplants that routinely cost more than $500,000 each.

The drugs’ high costs will continue to be an issue as the Affordable Care Act brings new HCV patients into the ranks of the insured, the analysis says. While Gilead may provide discounts to private insurance companies, the relatively short length of enrollment may deter them from covering the drug, the study warns.

Gilead is still working to get broad coverage for Sovaldi and Harvoni, but did sign an exclusive agreement with CVS in January to cover the drugs.

Read Cost-Effectiveness of Novel Regimens for the Treatment of Hepatitis C Virus at http://annals.org/article.aspx?articleid=2197177. Cost-Effectiveness and Budget Impact of Hepatitis C Virus Treatment With Sofosbuvir and Ledipasvir in the United States is available at http://annals.org/article.aspx?articleid=2197176. — Lena Freund