Pfizer to price COVID Treatment Paxlovid at $1390 Per Course

Pfizer has declared that the price for its COVID-19 antiviral treatment, Paxlovid, will be set at nearly $1,390 for a five-day course in the U.S. market, more than double the current government expenditure of around $530 per course. This pricing will come into effect once the government's supply is exhausted and moves to commercial sales. However, the listed price doesn't account for potential rebates and discounts that insurers and pharmacy benefit managers may receive. Despite the price change, Paxlovid will continue to be available at no cost to American patients until the end of the current year.

In clinical trials, Paxlovid demonstrated a significant reduction in hospitalizations and deaths, around 90%, particularly among unvaccinated individuals at high risk of severe disease. However, its efficacy wasn't established in patients considered at standard risk, including those vaccinated. The treatment will remain free for patients under U.S. government health programs like Medicare and Medicaid through 2024, and for uninsured and underinsured patients through 2028. The Institute for Clinical and Economic Review (ICER) suggested a price range of $563 to $906 per course, based on the drug's benefits and value.

The demand for Paxlovid has decreased since last year, with about 7 million courses administered in 2022 and approximately 3.4 million courses in 2023 up to October 1. The U.S. government initially purchased around 24 million courses of Paxlovid but decided to return 7.9 million courses due to lower-than-anticipated demand. This reduction in demand also led Pfizer to cut its full-year revenue forecast, as the sales of its COVID-19 related products, including Paxlovid, were lower than expected.