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Merck's New Pricing Pledge Shows Style Over Substance

Executive Summary

A 60% price reduction on hepatitis C drug Zepatier sounds impressive, but the drug has been declining and the HCV space overall is shrinking. Another set of 10% reductions come on small-sellers that are now generic. 

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A Case For List Price Cuts? Study Highlights Reduced 340B Liability For Hep C Drugs

Lower list prices for Epclusa, Harvoni, and Zepatier might actually boost revenue by reducing 340B discounts, but rebate-eschewing dynamic may not expand beyond them because of different exposures to 340B in other classes – and the pending HHS rebate rule.

Gilead’s Price Reduction Strategy: A Serious Move, But Not A Long-Term Model For US

“Authorized generics” for Gilead's leading hepatitis C brands stands out from prior, largely symbolic responses to the lower list prices. This is not a political move, but a business one. It is also the clearest demonstration yet of why pricing reforms are necessary if lower list prices are the policy goal.

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