Gilead HIV drug prices increase significantly, while Novartis enters a $5.2 billion licensing deal with Argo Biopharmaceutical.
• Gilead plans significant price hikes for HIV drugs in the US.
• Novartis signs $5.2 billion licensing deal with Argo Biopharmaceutical.
• The deals impact drug access and cardiovascular treatment development.
Gilead Sciences is planning to significantly increase prices for several HIV treatments distributed by state AIDS Drug Assistance Programs (ADAP). The proposed price hikes, averaging in the high-single digits, have caused concern among ADAP directors who are still negotiating with the company. A Gilead spokesperson emphasized that the company provides substantial discounts to ensure affordability and continuity of care for underserved populations. Read more.
Meanwhile, Swiss pharmaceutical giant Novartis has entered into a licensing agreement worth up to $5.2 billion with China-based Argo Biopharmaceutical. This deal includes an experimental genetic medicine currently in mid-stage trials aimed at controlling high blood fat levels. Additionally, Novartis has the option to license two drug candidates targeting high cholesterol levels, which are risk factors for heart disease.
Why it matters
The price increases by Gilead could impact access to essential HIV medications for many patients relying on state programs. These changes come amid financial uncertainties due to previous funding cuts. On the other hand, Novartis’s deal with Argo Biopharmaceutical highlights the growing collaboration between large pharmaceutical companies and Chinese biotech firms. This partnership could accelerate the development of innovative cardiovascular treatments.
What’s next
ADAP directors will continue negotiations with Gilead to mitigate the impact of the proposed price hikes. Meanwhile, Novartis and Argo Biopharmaceutical will focus on advancing their experimental drugs through clinical trials. These developments will be closely monitored by stakeholders in the pharmaceutical industry. For further insights, visit our Market Access section.