By Peter Loftus
Philadelphia's transit agency filed a lawsuit against Gilead
Sciences Inc., accusing the company of price-gouging on the sale of
its $1,000-per-pill hepatitis C drug Sovaldi, the latest salvo in a
battle between some health-care payers and the pharmaceutical
industry over prices.
The Southeastern Pennsylvania Transportation Authority, or
Septa, filed the lawsuit on Tuesday in U.S. District Court for the
Eastern District of Pennsylvania. The suit seeks class-action
status-subject to certification by a judge, on behalf of any person
or entity in the U.S. who has paid excessive prices for Sovaldi, or
was unable to obtain the drug.
The lawsuit seeks monetary damages from Gilead.
According to the lawsuit, Septa, which operates trains, buses
and subways in the Philadelphia region, has spent at least $2.4
million on Sovaldi this year for members of the health plans it
funds for employees and retirees.
A Gilead spokeswoman said on Wednesday that the company had no
comment because it had just received a copy of the lawsuit.
Previously, Gilead has said the price for Sovaldi, which
averages about $84,000 per patient for a standard course of
treatment, was justified by the drug's ability to cure a high rate
of hepatitis C patients, which can prevent more costly health care
services down the line, such as liver transplants.
Nicholas E. Chimicles, an attorney representing Septa in the
lawsuit, said the price of Sovaldi is "bleeding health and welfare
plans around the country."
Write to Peter Loftus at peter.loftus@wsj.com
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