Pfizer Inc (NYSE: PFE) is reportedly gearing up to price its Covid-19 drug Paxlovid at $1,390 for a five-day course, more than double what the U.S. government initially paid for it, at $529.
Pfizer's decision to raise the price has garnered criticism from doctors and patient advocates who fear limited patient access. The revelation of the list price is expected to intensify this criticism.
Last week, Pfizer slashed its full-year earnings and revenue guidance, citing decreasing demand for its COVID-19 products.
The reduced guidance for Paxlovid by approximately $7.0 billion includes a $4.2 billion non-cash revenue reversal for the return of approximately 7.9 million doses labeled for emergency use by the U.S. government.
In defense of their pricing, a Pfizer spokeswoman stated, "Pricing for Paxlovid is based on the value it provides to patients, providers, and health care systems due to its important role in helping reduce COVID-19-related hospitalizations and deaths."
The pricing disclosure was part of letters sent to pharmacies and health clinics and was viewed by the Wall Street Journal.
Typically, the list price sets the stage for negotiations between Pfizer and pharmacy-benefit managers concerning health plan payments and patient out-of-pocket charges.
Pfizer plans to offer discounts to ensure wider access, particularly to those uninsured or covered by Medicaid.
While Pfizer offered a discount to the U.S. government, it charged other high-income countries between $700 and $900 per course.
Gilead Sciences Inc (NASDAQ: GILD) charges commercial health plans $3,429 for a five-day course of its Covid-19 antiviral remdesivir.
Price Action: PFE shares closed at $31.41 on Wednesday.