FDA approved Veklury (remdesivir), the first drug approved to treat COVID-19, for use in adults and pediatric patients 12 years of age and older and weighing at least 40 kg (about 88 pounds) requiring hospitalization.
Gilead is able to clock a sales of $900 million COVID-19 drug Veklury in 3 month from July-September. This causes the significant increase in Veklury sales over the last year.
Future of Veklury in months ahead
Gilead believe that revenue of the Veklury may not be strong in month ahead, as the 3rd quarter growth.
Earlier this month, the FDA gave a full approval to Veklury, granting the drug a permanent place on the market even if the pandemic should recede. Recent data from a large World Health Organization-backed study, however, found Veklury did not prevent COVID-19 deaths — a finding Gilead disputes.
Veklury Strategic Plan
Gilead started working with the brand Veklury, and found huge potential to grow in Covid-19 pandemic. Gilead, in the initial months of the Covid-19 donated the drug significantly. In June 2020, a government-run study showed it could hasten the recovery of people hospitalized with COVID-19.
It was enstimated that almost 45% of the patient hospitalized with Covid-19 was treated with Veklury.
With the Covid-19 cases are in rise in US again, and Veklury now fully approved as Covid-19 cases, the drug may continue to have decent sales number, and certainly it’s going to reach 1 billion.
As a part of strategic and social initiative, Veklury is distributed by the U.S. government under a supply deal with Gilead.
Factors may affect Veklury Sales
- In last quarter, hospitalization rate has come down drastically. Therefore, it may limit the usage of Veklury.
- Vaccine is almost waiting for approval, and also certainly new treatment options are creating buzz around, may certainly affect the usage pattern.
Strategic Planning – Geography
In USA, Q3 sales lead to availabilty of the Veklury, which further inhibit the growth of Veklury in US. In 4th quarter, Gilead will certainly loook for the Europe and countries outside the U.S.
Gilead has stirred controversy with the high price it set for Veklury, charging $2,340 per 5-day treatment course to government insurance and $3,120 for commercial insurance. The price is lower than some on Wall Street had expected, but will still make the drug a blockbuster treatment.