0
We're unable to sign you in at this time. Please try again in a few minutes.
Retry
We were able to sign you in, but your subscription(s) could not be found. Please try again in a few minutes.
Retry
There may be a problem with your account. Please contact the AMA Service Center to resolve this issue.
Contact the AMA Service Center:
Telephone: 1 (800) 262-2350 or 1 (312) 670-7827  *   Email: subscriptions@jamanetwork.com
Error Message ......
Comment & Response |

Costs of New Treatments for Hepatitis C Infection

Ruth Lopert, MD1; Craig Welch2
[+] Author Affiliations
1Department of Health Policy, George Washington University, Washington, DC
2LWC Health Pty Ltd, Canberra, Australia
JAMA. 2014;312(20):2168. doi:10.1001/jama.2014.14337.
Text Size: A A A
Published online

Extract

To the Editor In seeking to rationalize sofosbuvir pricing, Drs Brennan and Shrank1 assumed $11 billion in development costs. Even if this were reasonable, Gilead’s $2.27 billion first quarter revenue would suggest that the price was grossly inflated. But the development of sofosbuvir did not cost that much.

Normally, a commercial sale includes an amount for intangible assets, such as goodwill. In the acquisition of Pharmasset by Gilead for $11 billion, these assets were estimated at only $74.8 million.2 Despite 3 hepatitis C virus (HCV) drugs in development at Pharmasset (with only $62.4 million attributed to sofosbuvir development in 2009-20113), Gilead accounted for almost all the remaining tangible assets as the “fair value” of sofosbuvir.2 Consistent with standard accounting practice, the fair value was classified as an intangible asset.2 It is therefore incorrect to consider the $11 billion as research and development costs.

Topics

Sign in

Purchase Options

• Buy this article
• Subscribe to the journal
• Rent this article ?

First Page Preview

View Large
First page PDF preview

Figures

Tables

References

November 26, 2014
Troyen A. Brennan, MD, JD, MPH; William H. Shrank, MD, MSHS
1CVS Caremark, Woonsocket, Rhode Island
2CVS Caremark, Cumberland, Rhode Island
JAMA. 2014;312(20):2168-2169. doi:10.1001/jama.2014.14352.
CME
Also Meets CME requirements for:
Browse CME for all U.S. States
Accreditation Information
The American Medical Association is accredited by the Accreditation Council for Continuing Medical Education to provide continuing medical education for physicians. The AMA designates this journal-based CME activity for a maximum of 1 AMA PRA Category 1 CreditTM per course. Physicians should claim only the credit commensurate with the extent of their participation in the activity. Physicians who complete the CME course and score at least 80% correct on the quiz are eligible for AMA PRA Category 1 CreditTM.
Note: You must get at least of the answers correct to pass this quiz.
Please click the checkbox indicating that you have read the full article in order to submit your answers.
Your answers have been saved for later.
You have not filled in all the answers to complete this quiz
The following questions were not answered:
Sorry, you have unsuccessfully completed this CME quiz with a score of
The following questions were not answered correctly:
Commitment to Change (optional):
Indicate what change(s) you will implement in your practice, if any, based on this CME course.
Your quiz results:
The filled radio buttons indicate your responses. The preferred responses are highlighted
For CME Course: A Proposed Model for Initial Assessment and Management of Acute Heart Failure Syndromes
Indicate what changes(s) you will implement in your practice, if any, based on this CME course.

Multimedia

Some tools below are only available to our subscribers or users with an online account.

499 Views
0 Citations
×

Sign in

Purchase Options

• Buy this article
• Subscribe to the journal
• Rent this article ?

Related Content

Customize your page view by dragging & repositioning the boxes below.

See Also...
Jobs
brightcove.createExperiences();