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New hepatitis C drug costs 1,000 a day

 Gilead, a biopharmaceutical company based in California, created Sovaldi, a drug that can cure 90 percent of hepatitis patients. Execpt, one pill costs $1,000…

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Pharmaceutical company creates a drug that costs $1,000 a day. 

Gilead, a biopharmaceutical company based in California, created Sovaldi, a drug that can cure 90 percent of hepatitis patients.

The company claims the success rate of Sovaldi would reduce the possibility of hepatitis C patients using other drugs and treatments in the future. 

Gilead tested Sovaldi in Japan because of its high rates of hepatitis C. More than two million people in Japan have the virus. 

In the U.S., more than three million have it as well. 

Execpt, one pill costs $1,000 and for a 14-week course, it carries a list price of $84,000. 

According to Gilead's press release, the company tested 153 patients and according to the study, more than 90 percent cure rate after 12 weeks of taking the medication. The drug was approved by the FDA on Dec. 6, 2013.

Does this justify high price?

Some believe Sovaldi is just too expensive, despite its miracle claims. Insurance companies, in particular, are not happy with high-price miracle drug.  

Monlina Healthcare, one the biggest companies that manages Medicaid in the U.S. is trying to reserve the drug for the sickest patients and asking the state to take on a bigger chunk of the cost, according to the Wall Street Journal. 

Mario Monlina, president of Monlina Heathcare told Forbes, "If everyone in the U.S. that had hepatitis C were treated with Sovaldi at list price, the tab would run to $227 billion, to put that in perspective, the amount spent on all drugs in the U.S. is about $260 billion," he said. 

Gilead stated the price is comparable to older drugs on the market that cost less but don't cure patients. Overall, according to Gilead, the drug helps to save lives. 

The steep price hasn't deterred people from buying it. Sales for Sovaldi have soared, according to the Wall Street Journal, it could rack $5 billion this year if the current prescription rate holds. 

"The drug is a microcosm of the U.S. healthcare system's structural problems," Forbes writer Sadeghi-Nejad said in his article about Sovaldi. 

"We want big scientific advances, but are not prepared to handle the costs of a drug so effective and tolerable that every patient wants it at once."

 
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