
Louisiana Chooses Asegua to Partner for "Netflix" Subscription Model for HCV Treatment
Louisiana's Departments of Health and Corrections announced this week their selection of Asegua Therapeutics, a generics subsidiary arm of Gilead Sciences, as their pharmaceutical partner for the state’s “Netflix” subscription model for hepatitis C virus (HCV) treatment. Asegua won the deal over Merck and AbbVie, which each submitted bids for the subscription model.
The Louisiana Departments of Health and Corrections
This alternative payment model, the first of its kind, was first
Under this model, instead of paying for each prescription individually, the state would pay a subscription fee to the drug company whereby the state would then receive unlimited access to the drug, similar to how consumers pay a monthly fee to stream unlimited television shows and movies.
After allowing for public comment on the subscription model, Louisiana’s Department of Health announced in January 2019 that it would move forward with the subscription model and would be taking bids from drug companies.
“The next step is to complete the contract between Asegua and our agency. We were extremely pleased that 3 manufacturers offered proposals, with the plan submitted by Asegua offering us a clear path forward to offer a hepatitis C cure to our most vulnerable patients,” said Rebekah Gee, MD, MPH, FACOG, secretary of the Louisiana Department of Health in a prepared
With this partnership, the Louisiana Departments of Health and Corrections will have 5 years of unrestricted access to Asegua’s HCV treatment. The state’s goal is to treat 10,000 patients with HCV by the end of 2020, which accounts for nearly a quarter of its infected population on Medicaid and in prison. In 2018, the state only
According to Gee, the goal is to enter into an agreement for a subscription model fee that does not exceed the amount the state spent in 2018.
The announcement of Asegua winning the deal with Louisiana is particularly noteworthy due to the stir its parent company, Gilead, caused a few years ago with the release of its brand name HCV treatment, sofosbuvir (Sovaldi). The drug
For its part, Gilead disagreed with the committee's conclusions, stating that the price was “in line with previous standards of care.” The company also explained that it has created programs to help uninsured patients and those requiring financial assistance access the treatments.
However, due to increased competition within the space, Gilead’s hepatitis C sales have taken a significant
Gee has said she expects to have a contract in place by June 1, with the official start of the subscription model anticipated just 1 month later, on July 1, the start of its new fiscal year.
The news of this innovative model has inspired at least 1 other state to consider implementing something similar. State officials in Washington are
Additionally, Washington officials also asked that bidders include details on outreach and screening as well as pricing. Proposals are due this month, with a winning bidder announced sometime in April.
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