130 million people round the world have hepatitis C. The disease is best treated by a direct-acting antiviral drug called sofosbuvir, sold by a company called Gilead. Gilead introduced this drug onto the US market at the astonishing price of $84,000 for 12 weeks course of treatment.  Since the drug has to be used in combination with another antiviral medicine,the total cost is even higher. It would cost $226 billion, at this rate to treat the 2.7 million sufferers in the US alone. According to Medecins sans Frontieres, peer-reviewed estimates indicate a manufacturing price of $1.20 per pill.

Since pharmaceutical companies are not required to publicize the true cost of drug development it’s hard to know what it is in this case, but economist Jeffery Sachs estimates it to be as low as $300 million.  Moreover, part of the research cost was paid for by Emory University, supported by government grants. Gilead says that the high price takes into account the amount of money saved by obviating the need for future treatments, including liver transplants and hospital stays.  They say the pill saves money, because other procedures are unnecessary.  

It’s possible to charge $1000 a pill owing to the fact that the US allows monopolists to charge what they like and also to the lack of a single-payer system, which allows a powerful buyer to bargain. The US Congress specifically forbids such bargaining (value of the reward for this to Republican Party fundraisers unknown, but assumed to be significant). The worst sufferers are the poor and developing countries. These get a discount, but the price is still beyond their ability to pay. (facts reported by Doctors without Borders).  

This outrageous situation is called “liberty” by some, the “free market” by others. Why not “exploitative blackmail”?