Paxlovid, Pfizer’s antiviral medication for treating the coronavirus disease, is showcased in this photograph taken on October 7, 2022.
Wolfgang Rattay | Reuters
Pfizer has announced that the price of a five-day course of its Covid antiviral drug, Paxlovid, will be set at $1,390 once it enters the commercial market later this year.
The Wall Street Journal first reported this price, which has been confirmed by a Pfizer spokesperson. It’s important to note that this price is the initial list price and does not account for potential discounts and rebates offered to insurers and pharmacy benefit managers. The list price of $1,390 is more than double the $529 that the federal government paid for Paxlovid.
Pfizer has been supplying Paxlovid to the government, and it’s been distributed to the public free of charge since December 2021 when it received FDA authorization. However, starting in 2024, Pfizer plans to directly sell Paxlovid to health insurers. This decision comes as the demand for Covid vaccines and treatments decreases nationwide.
Concerns have been raised by doctors, health experts, and patient advocates regarding the higher price, as it may limit access to this life-saving treatment. Paxlovid has been proven to reduce the risk of severe disease and death among vulnerable patients, such as those with diabetes, heart conditions, or weakened immune systems.
However, it’s important to note that health insurance plans will likely pay significantly less than the list price, meaning patients may have minimal or no out-of-pocket costs. Pfizer is also collaborating with payers to lower copayments for patients. Additionally, Pfizer intends to subsidize copayments for commercially insured individuals until at least 2028.
In a statement to CNBC, a spokesperson for Pfizer stated, “As always, Pfizer’s goal is to ensure broad and equitable access to our medicines. We are working diligently with payers to achieve the best possible formulary placement for Paxlovid, resulting in low out-of-pocket costs for patients.”
Pfizer has also announced that it expects revenue from Paxlovid to be $7 billion lower than previously anticipated, partly due to the return of doses labeled for emergency use by the federal government. As a result, Pfizer has revised its 2023 sales expectations to be in the range of $58 billion to $61 billion, down from the previous guidance of $67 billion to $70 billion. This adjustment in revenue projection is solely attributed to its Covid products.
— CNBC’s Angelica Peebles contributed to this report.
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