Jim Cramer Likes Bristol-Myers Over Gilead
Gilead announced that its remdesivir drug, which is being used to treat the coronavirus, will cost around $390 a vial. Gilead, in a press release, noted that--based on current treatment patterns--this will cost consumers around $2,340 a patient in developed countries.
However, for those with private insurance, the cost will be $520 vial and a five-day treatment would cost patients $3,120.
In an open letter, CEO Daniel O’Day said Gilead will provide remdesivir “well below” the value that it has so far proven to provide in treating patients afflicted with Covid-19, the respiratory illness contracted through exposure to the novel coronavirus.
“In normal circumstances, we would price a medicine according to the value it provides,” O’Day said in the letter. However, “To ensure broad and equitable access at a time of urgent global need, we have set a price for governments of developed countries of $390 per vial.”
"There is no playbook for how to price a new medicine in a pandemic," said O’Day.
Remdesivir is a broad-spectrum antiviral medication administered via injection that has proven effective at helping patients with severe symptoms of Covid-19 recover. While Gilead has received emergency use authorization from the Food and Drug Administration, it has not yet been formally approved as a coronavirus treatment.
So, what does this mean for the stock of Gilead?
Jim Cramer said that he's still not a fan of the stock.
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