As Redxive has won the US FDA’s emergency use authorization, the cost of the new crown treatment has begun to spark more discussion.
On May 6, the international rating company Fitch published a non-rating review article that believes that the pricing method for new coronary pneumonia treatment may change the economic model of the global pharmaceutical industry.
Fitch believes that the pharmaceutical industry needs to develop a sustainable business model to balance the scarcity and price of other new coronary pneumonia treatments such as ridcive. Balanced pricing measures need to adapt to the affordability of different regions, such as hierarchical pricing. At the same time, pharmaceutical companies need to increase cooperation and alliances to expand production scale and reduce unit drug costs.
In the article, Fitch introduced that drug pricing has three traditional dimensions, clinical value, system value, and research and development returns. Now, due to the huge global demand for new coronary pneumonia treatments, the scarcity of drugs has become a new pricing dimension.
Now, the pharmaceutical industry needs to develop a sustainable business model to balance the scarcity and price of new coronary pneumonia treatments.
Fitch cited for example that Gilead’s redcive is the first new treatment for coronary pneumonia that has passed clinical trials. Clinical trials have shown that the use of redoxivir increased the speed of recovery of patients by 31% compared to placebo.
Fitch said that drug pricing will once again be the focus, but this time it will be very large. Medical systems around the world have demand for this, but the prices that can be afforded in different regions are very different, which also highlights the importance of production, cost and access to new coronary pneumonia drugs. To date, Gilead has donated all of its redoxir reserves for experimental treatment and research trials.
Fitch believes that the value of the medical system and the price of medicines will become the main considerations for the treatment of new coronary pneumonia. The faster recovery of patients can save the cost of the medical system, which means that there is a lot of pricing potential, but the medical system may not be able to afford excessive pricing.
In addition, some affluent medical systems may bid for each other in order to obtain limited medicines, thereby preventing developing countries from obtaining medicines, which may weaken local regulatory systems Drug patent protection to allow drugs to be produced more widely and reach more people faster and cheaper. The economic model of the pharmaceutical industry is to promote R & D through the benefits of the patent protection period, while the government ’sThis behavior may weaken this economic model and cause damage to the industry.
Fitch believes that balanced pricing measures need to adapt to the affordability of different regions, such as hierarchical pricing, and pharmaceutical companies need to increase cooperation and alliances to expand production scale And reduce the unit drug cost.
It can be seen that the R & D side of Gilead, the research and development company of Redsilver, has begun to consider the supply and pricing of drugs.
On May 5th local time, Gilead announced that it will produce and sell the new coronary pneumonia treatment drug Ridesivir together with other pharmaceutical companies outside the United States. Ensure that the drug supply can meet global demand.
Gilead said that the company is in talks with a number of pharmaceutical and chemical manufacturing companies, hoping to acquire European, Asian and developing countries and regions by at least 2022 Redxive production license.
The supply of generic drugs and low-income countries has also been taken into consideration.
Gilead said the company is also in talks with pharmaceutical manufacturers in India and Pakistan to grant them a long-term license to sell generic drugs in developing countries. At the same time, the company is also negotiating with the United Nations-supported non-profit organization “Medicines Patent Pool” (Medicines Patent Pool) to authorize the use of redoxir in low-income countries.
According to the Wall Street Journal ’s report on the same day, Gilead allowed low-income countries to immediately sell generic drugs of ridacive at the same time, possibly to avoid controversy over drug pricing . Gilead has not yet set prices for ridacive, but said it will work to make the price of the drug acceptable and easily available.
At present, the development of new coronavirus vaccines is also accelerating cooperation and alliance trends in other professional therapeutic areas (such as oncology). These alliances are usually in government and non-commercial With the support of the organization, gather knowledge to find faster solutions.
Developed countries are currently developing solutions for biological vaccines. This method is generally safer, but expensive to produce and difficult to scale up. Some forms of public funds may be supported Pre-investment, or provide guarantees for output to fund vaccine research and development and reduce investment risks.
Fitch finally stated that it hopes to see different economic models and safe vaccine options within 12-18 months, which can alleviate production and price concerns.