Nearly a dozen state treasurers are asking Gilead Sciences (GILD) to lower the price of its experimental remdesivir treatment for Covid-19, arguing the company is attempting to market an “old drug at prices that are disconnected from economic reality.”
In a letter to Gilead chief executive Daniel O’Day, the state officials cautioned that Gilead should not take “financial advantage” of the pandemic to pursue “unreasonable profits” because it “sets a dangerous precedent for future treatments in development.” The letter was sent by treasurers in Ohio, Pennsylvania, Nevada, Maine, Iowa, Oregon, Colorado, Wisconsin, Texas, Rhode Island, and Massachusetts.
The treasurers noted that their states are Gilead shareholders and expressed concern about the long-term value of Gilead stock, because prices “disconnected from market forces will ultimately backfire,” undermining the company’s long-term sustainability and threaten its business model. They also threatened to support any legislative or legal actions over remdesivir pricing.
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