Express Scripts Drops Gilead’s Hep C Treatment in Favor of AbbVie

Reuters reported that Express Scripts Holding Company (NASDAQ:ESRX), the largest US pharmacy benefit manager, will now in most cases not cover Gilead Sciences Inc.’s (NASDAQ:GILD) hepatitis C treatment. The firm has lined up a cheaper price for AbbVie Inc.’s (NYSE:ABBV) treatment.

As quoted in the market news:

Express Scripts opposed the $84,000 price tag of Gilead Sciences’ Sovaldi treatment since its approval a year ago. It said the $1,000-a-day pill, shown to cure hepatitis C in most patients, was unaffordable.

Private insurers generally receive discounts of as much as 20 percent, but Gilead has resisted, bringing in $3 billion in quarterly revenue for Sovaldi this year. The company maintains that Sovaldi, and a next-generation version called Harvoni that was approved in October, will save the U.S. healthcare system the costs of caring for advanced liver disease in many patients.

Gilead spokeswoman Cara Miller said on Monday in an e-mailed statement that the company is continuing to negotiate with Express Scripts.

AbbVie’s Viekira Pak drug was approved on Friday by U.S. regulators and the company set a list price of $83,319.

Click here to read the full Reuters report.