This New Covid Drug Might Not Even Work — So Why Does It Cost Hospitals a Fortune?
The U.S. Food and Drug Administration is standing by its new approval of remdesivir (Veklury), against the World Health Organization’s suggestion. On Nov. 20, the WHO issued a conditional recommendation against the use of the antiviral medication when treating patients with COVID-19 of any severity.
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The WHO’s recommendation against remdesivir was reached after examining data from the SOLIDARITY trial that indicated the drug did not improve critical outcomes including mortality or the need for mechanical ventilation. In its remdesivir approval statement, last updated on Nov. 25, the FDA acknowledged the WHO’s trial, but categorically dismissed its findings, asserting that they don’t refute findings in another trial that suggest remdesivir can benefit COVID patients.
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You might be wondering, if remdesivir at worst, doesn’t work much, what is the harm in administering it to COVID-19 patients? Isn’t trying — just in case — better than not trying? These are valid questions, but they don’t take into account a critical subtext: money. Remdesivir is an expensive drug; a single course of treatment is priced at $2,340 per patient — when purchased by governments of developed countries. Private insurance companies pay upwards of $3,100, as do hospitals.
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In its open letter setting its steep prices, Gilead (NASDAQ:GILD) asserted that remdesivir will save hospitals an average of $12,000 per patient hospitalized with COVID-19, citing the drug’s ability to speed up recovery and thus shorten costly hospital stays. But with WHO’s new research indicating that remdesivir does not quicken recovery — or help in any other meaningful way in people hospitalized with the deadly virus — the question of whether this pricey treatment is worth the expense must be asked.