COVID-19 Treatment Candidate, Unit Price 8 Cents vs. List Price 19 Dollars

[Asia Economy Reporter Hwang Junho] A study has found that the manufacturing cost of candidate treatments for the novel coronavirus infection (COVID-19) is around 1 dollar. This means that the price of the treatment candidates is not high, making it possible to set prices at a level where anyone can receive treatment. However, the official prices are set at very high levels, and given the expected surge in demand due to the COVID-19 pandemic, there are doubts about whether affordable treatment will actually be available.

COVID-19 Treatment Prices Up to $1.45

[Image source=Yonhap News]

On the 10th (local time), a research team led by Andrew Hill, a senior research fellow at the University of Liverpool in the UK and an expert in drug pricing policy, published a study comparing the prices of nine COVID-19 treatment drugs in the Journal of Virus Eradication.

Countries around the world, including South Korea, are conducting 'drug repurposing' efforts to treat COVID-19 using existing marketed drugs. The study analyzed the manufacturing costs, highest and lowest market prices of nine drugs with excellent efficacy.

According to the research report, the manufacturing cost of the nine candidate treatments was found to be around 1 dollar. The manufacturing cost of Remdesivir, an Ebola treatment drug analyzed by the Korea Research Institute of Chemical Technology as having the highest efficacy among existing drugs for COVID-19 treatment, was about 93 cents. This cost assumes manufacturing the amount needed to treat one adult for one day.

Favipiravir (600mg), a Japanese novel flu treatment drug currently undergoing clinical trials in the United States, was found to cost about $1.45. Hydroxychloroquine (400mg), a malaria treatment drug praised as a 'game changer' for COVID-19 treatment by former U.S. President Donald Trump, was analyzed to cost about 8 cents. The cost of Chloroquine (155mg), a similar drug considered for COVID-19 treatment, was also around 2 cents.

The research team estimated that the manufacturing cost of drugs for treatment periods ranging from 10 to 28 days would be between a minimum of 30 cents and a maximum of 31 dollars.

Hill explained in the report, "This study clearly shows that the manufacturing cost of COVID-19 treatments is not expensive and that prices can be set so that everyone who needs treatment can access them."

Low Manufacturing Cost but Market is Key

Research Results Table of the Research Team Led by Andrew Hill, Senior Research Fellow at the University of Liverpool, UK, Published in the Journal of Virus Eradication

However, the official prices of COVID-19 treatment candidates in each country were found to be set significantly higher than the manufacturing costs.

Remdesivir is still in clinical trial stages, so there is no market price yet, but the estimated price was about $9. For Favipiravir, the lowest price (in China) was set at $231. Hydroxychloroquine is sold at the highest price of $19 in China, while in India it can be purchased for $2. Chloroquine's highest market price reached $93.

The selling prices of these drugs are likely to be adjusted once they are confirmed as COVID-19 treatments. Various countries are conducting animal and clinical trials on these drugs, and if the results are positive, they will be used as COVID-19 treatments. In such cases, price adjustments due to overwhelming demand seem inevitable.

Hill predicted in an interview with a foreign media outlet, "The difference between manufacturing cost and market price is very large," adding, "Drugs that will be used as treatments will have enormous demand, which may cause supply shortages, making it difficult even to use them for their original purposes."

This content was produced with the assistance of AI translation services.