Fact Check: "Gilead's lenacapavir could be priced 1,000 times higher than production cost."
What We Know
Lenacapavir, an injectable medication for HIV prevention, is currently priced between $25,395 and $44,819 per person per year (pppy) (source-1). Research indicates that the cost of producing lenacapavir could be significantly lower, with estimates suggesting it could be mass-produced for less than $100 pppy (source-7). Specifically, projections based on a Cost-Plus model indicate that with sufficient scale-up, costs could drop to approximately $94 pppy for 1 million treatment-years and even lower, around $41 pppy for 10 million treatment-years (source-1).
Analysis
The claim that Gilead's lenacapavir could be priced 1,000 times higher than its production cost is supported by the substantial difference between the current market price and the estimated production costs. If lenacapavir can be produced for as low as $40 pppy (source-6), this would imply that the current price could indeed be over 1,000 times higher than the production cost.
However, it is essential to assess the credibility of the sources providing these estimates. The primary source of the production cost estimates comes from a peer-reviewed study in the Journal of Antimicrobial Chemotherapy, which is a reputable journal in the field (source-1). Additionally, the claims of potential pricing by generic manufacturers are echoed by advocacy groups and health organizations, which often have a vested interest in ensuring affordable access to medications (source-8).
On the other hand, Gilead Sciences, the manufacturer of lenacapavir, has been criticized for its pricing strategies in the past, which raises concerns about the company's willingness to adopt more equitable pricing models (source-3).
Conclusion
The claim that Gilead's lenacapavir could be priced 1,000 times higher than its production cost is True. The current pricing of lenacapavir is significantly higher than the estimated production costs, which supports the assertion that the market price could be inflated by a factor of 1,000 or more compared to what it could cost to produce the drug.
Sources
- Lenacapavir to prevent HIV infection: current prices versus ... PubMed
- 吉利德是一个怎样的公司? - 知乎 Zhihu
- Statement from Latin American Civil Society to Gilead ... Public Citizen
- Gilead Sciences 是一家怎样的公司？是如何在 10 年内市值 ... Zhihu
- 艾滋病阻断药的阻断原理和成功阻断率是多少？ - 知乎 Zhihu
- Lenacapavir could be produced for $40 a year i-Base
- Lenacapavir to prevent HIV infection: current prices versus ... Oxford Academic
- Break Gilead's Lenacapavir Monopoly ... MSF Access
