Pfizer, which makes the drug, announced a price of $1,390 on Thursday for a five-day course of Paxlovid, which has been sold to the federal government for $529 since receiving emergency use authorization in December 2021.
The U.S. Department of Health and Human Services has set December 15 as the deadline to expand free access to Paxlovid, a groundbreaking COVID-19 treatment proven to reduce hospitalization rates and mortality risk.
The government plans to bring the drug to the commercial market by November, working with Pfizer to ensure continued access for uninsured people and beneficiaries of Medicare and Medicaid programs through 2024.
Pfizer defended the price increase in a statement.
“Paxlovid’s pricing is based on the value it provides to patients, providers and health systems as it plays an important role in reducing hospitalizations and deaths related to COVID-19,” the company said, adding that it offers discounts and will offer discounts to insurers and pharmacy benefit managers.
“The list price does not necessarily reflect the price a patient will pay,” Pfizer said, noting its commitment to ensuring widespread access to the drug. “We are working diligently with payers to achieve the best possible formulation placement for Paxlovid, resulting in low out-of-pocket costs for patients.”
Under the terms of the agreement with the government announced Friday, Pfizer has committed to operating a patient assistance program for uninsured or underinsured people from 2025 to 2028, and a co-pay program for commercially insured people through 2028.
The Chronicle was unable to reach a Bay Area health insurer willing to say how the price change might affect their Paxlovid coverage.
A combination of the antiviral drugs nirmatrelvir and ritonavir, Paxlovid reduced the risk of severe COVID-19 disease by up to 90% in clinical trials when given within five days of a positive coronavirus test. Some preliminary studies suggest it has the potential to reduce the severity and risk of long-term COVID.
While Paxlovid was originally prescribed for high-risk people, updated guidelines recommend Paxlovid for people ages 12 and older.
Pfizer similarly raised prices for its COVID-19 vaccine – from $20 to $120 – as the drug moved to the commercial market following the end of the national emergency related to the pandemic in April.
Eric Topol, director of the Scripps Research Translational Institute and a leading voice on COVID-19, equated the move to “price gouging.” Many public health experts fear the price increase will create an additional barrier to access to paxlovid, since doctors are already reluctant to prescribe it to healthy and younger people.
Approximately 15 million courses of Paxlovid have been distributed to U.S. pharmacies, serving approximately 10 million Americans. About 1 million doses are available nationwide.
Despite a declining trend in COVID-19 rates in the United States after the summer surge, health officials are preparing for a possible winter surge in cases.
To date, nearly 1.15 million Americans have lost their lives to COVID-19 since the pandemic began. That number includes about 52,000 Americans who died this year.
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