Advocates from AIDS
Healthcare Foundation (AHF) today criticized Gilead
Sciences and its CEO John Martin on the news that the company landed
on Standard & Poor's top 100 gainers list for November, 2012 shortly
after scoring record profits in its 2012 third quarter. According to a Cabot
Investing Newsletters news item, "Gilead Sciences (GILD) was one
of the top S&P 100 gainers list for November, Investor's Business Daily
reported. The S&P 100 index includes the very biggest U.S.
companies - the largest market cap stocks in the broader S&P 500.
Megacaps often offer slower gains, but Gilead was a big winner last
An earlier Reuters news item from late October noted, "Gilead's
third-quarter sales of HIV drug Atripla rose 9 percent to $865.4
million, which was short of the $876 million expected by analysts,
according to numbers published by BM Capital Markets. Sales of HIV drug
Truvada rose 8 percent to $804.2 million, beating analysts' estimate of
$762 million." The article also noted that third quarter revenue was
up 14% overall to $2.43 billion, as the company also raised its full
year sales forecast to $9.2 billion.
"The record profits for Gilead Sciences that continue to roll in are
based largely on the company's historic pattern and practice of AIDS
drug price gouging and the corporate welfare showered on Gilead by
government programs such as Medicare, Medicaid and the V.A. as well as
private insurers," said Michael Weinstein, President of AIDS
Healthcare Foundation. "This is about as clear an example of AIDS drug
profiteering as one can get. Gilead, under CEO John Martin, scored
record profits in the third quarter by gouging hard-hit government
programs and private insurers with incredibly high prices that do not
reflect the reality of the R&D involved in developing these lifesaving
drugs nor the actual costs to manufacture them. As tax dollars pay for
most of these drugs, we continue our call on Gilead to expand price
concessions on Stribild and its other AIDS drugs to other programs
including Medicaid, Medicare, private insurers and other payers."
Gilead's new four-in-one AIDS treatment combination was approved by the
Food and Drug Administration (FDA) in early September and immediately
priced by Gilead at $28,500 per patient, per year, Wholesale Acquisition
Cost (WAC). That price was over 35% more than Atripla, the company's
best selling combination HIV/AIDS treatment, and made Stribild the
highest priced first line combination AIDS therapy today.
About AIDS Healthcare Foundation
AIDS Healthcare Foundation (AHF), the largest global AIDS
organization, currently provides medical care and/or services to more
than 183,000 individuals in 28 countries worldwide in the US, Africa,
Latin America/Caribbean, the Asia/Pacific Region and Eastern Europe. To
learn more about AHF, please visit our website: www.aidshealth.org,
find us on Facebook: www.facebook.com/aidshealth
and follow us on Twitter: @aidshealthcare.
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