Paxlovid COVID-19 Treatment to Enter Private Market with Hefty Price Tag

Paxlovid, a COVID-19 treatment, will enter the private market next week with a hefty price tag of $1,390 for a five-day treatment. However, Americans can still access the pills at no cost for now. Lagevrio, another COVID-19 treatment, will also hit the market next week.

Millions of Americans have taken COVID-19 treatments for free from the federal government. However, starting next week, these treatments will enter the private market with a hefty price tag. Pharmaceutical giant Pfizer has set the price for a five-day treatment of Paxlovid at $1,390. But Americans can still access the pills at no cost, for now.

Merck's Lagevrio Also to Hit the Market

Lagevrio, a less commonly used COVID-19 treatment manufactured by Merck, will also hit the market next week. Millions of free, taxpayer-funded courses of the pills will remain at pharmacies, hospitals, and doctors' offices across the country, according to U.S. Health and Human Services officials. People on private insurance may start to notice copays for the treatments once their pharmacy or doctor's office runs out of the COVID-19 treatments they received from the government.

Government Deal with Pfizer

The U.S. government initially inked a deal with Pfizer to pay more than $5 billion for 10 million courses of Paxlovid in 2021. Under a new agreement reached last month between Pfizer and the federal government, people on Medicaid, Medicare, or those without medical insurance will not pay any out-of-pocket costs for the treatment through the end of next year. Pfizer will also offer copay assistance for the treatment through 2028.

Pfizer's Commitment to Smooth Transition

In an emailed statement to The Associated Press, Pfizer said, "Pfizer is committed to a smooth commercial transition and is working collaboratively with the U.S. government and healthcare stakeholders to ensure broad and equitable access to this important medicine for all eligible patients."

Full-Year Revenue for Paxlovid and Comirnaty

Full-year revenue for Paxlovid and Pfizer's COVID-19 vaccine, Comirnaty, is expected to be approximately $12.5 billion. Merck has not confirmed a list price yet for its Lagevrio treatment but said in a statement to AP that it will also offer the treatment free to patients "who, without assistance, could not otherwise afford the product."

As COVID-19 treatments enter the private market, it remains to be seen how affordable they will be for the average American. The availability of free treatments for those on Medicaid, Medicare, or without medical insurance is a positive step towards ensuring equitable access. However, it is crucial to address the high cost of these treatments in the long term to ensure that everyone who needs them can access them, regardless of their financial situation.