Report: Gilead Sciences (GILD) Could See Over $2 Billion In Sales From Remdesivir

By Dan Anderson ● May 4, 2020
  • The remdesivir treatment being developed by Gilead Sciences, Inc. (NASDAQ: GILD) could potentially have a price tag of about $4,500 each round and generate over $2 billion

The remdesivir treatment being developed by Gilead Sciences, Inc. (NASDAQ: GILD) could potentially have a price tag of approximately $4,500 each round. And this could generate over $2 billion in revenue for the biotech company, according to analysts at Piper Sandler via Bloomberg.

The $4,500 price is the maximum that the Institute for Clinical and Economic Review recommended for a 10-day treatment of Gilead’s remdesivir — which had received emergency approval from U.S. regulators on Friday. Gilead Sciences, Inc. (NASDAQ: GILD) has been quiet about its pricing so far. Piper Sandler’s Tyler Van Buren told Bloomberg that $4,500 “seems really reasonable” when talking about saving a life.

Gilead Sciences, Inc. (NASDAQ: GILD) pledged to donate the first 1.5 million vials. And even with that pledge, the drug could still generate over $2 billion in sales by the end of the year based on that price. Van Buren does not expect Gilead to disclose pricing until after the donated supply has been used.

Clearance from The Food and Drug Administration followed results from a study suggesting that the drug reduced hospital stays. But this conflicted with results from China where remdesivir did not have an effect on preventing deaths.

Geoffrey Porges, a Senior Managing Director, Director of Therapeutics Research, Senior Biopharmaceuticals Analyst at SVB Leerink, pointed out in a note to clients that at $4,500 per patient, remdesivir would have a gross margin and overall profit contribution that is below Gilead’s other products, but was not “highly dilutive to the company’s future profitability outlook.”