The newly approved Hepatitis C drugs manufactured by AbbVie and Gilead Sciences may propel cure rates to more than 90 percent, but they cost over $1,100 per pill.
Considering the high price, an Annals of Internal Medicine report published on March 16 suggests that the US health care system will have to shell out an extra $65 billion over five years to get the drugs to every eligible American.
The budget needed to provide the country's patients with their daily regimens for HCV treatment may cost a whopping USD 136 billion over the next five years, reports Science Codex. The prediction comes from a cost-effectiveness analysis led by researchers at The University of Texas MD Anderson Cancer Center.
Jagpreet Chhatwal, Ph.D., study lead and assistant professor of Health Services Research at MD Anderson, has found that the 'U.S. Food and Drug Administration' approved combination of two drugs for treatment of hepatitis C - sofosbuvir and ledipasvir -is definitely cost effective in comparison with the older types of treatments. However, the budget needed to treat all Hepatitis C patients in the US is unsustainable.
"While most developed countries factor in treatment cost before approving a drug, U.S. law prohibits considering such costs. Therefore, patients almost always end up paying more for the drugs that were developed in the U.S.," Chhatwal explains.
"Considering the law also prohibits Medicare from negotiating drug pricing, the new treatment cost could strain the budget of Centers for Medicare and Medicaid Services," Chhatwal adds.
Hepatitis C is a viral infection that causes inflammation in the liver, and for a significant majority, the infection becomes chronic. According to the U.S. Centers for Disease Control and Prevention estimates, the number of chronic Hepatitis patients in US is 3.2 million.
The drugs used in Hepatitis C treatment are currently being manufactured by two companies. Gilead Sciences makes Sovaldi and Harvoni; while AbbVie markets a drug called Viekira Pak, according to Web MD.
The treatments with new approved drugs would make Hepatitis C a "rare" disease but the costs are sky high. Treatment with Sovaldi costs up to USD 84,000 and lasts for about 12 weeks. Harvoni treatment lasts for eight weeks, but costs over USD 93,000.
"We know these drugs are good, and patients need treatment. High costs shouldn't be an obstacle." said Chhatwal.
Note: This study was finalized before FDA approval of AbbVie's HCV drug, and of Gilead's announcement that discounts on Sovaldi would be up to 46 percent on average.