Gilead purchase of novel cancer treatment raises cost issues again

Washington

GILEAD Sciences' acquisition of Kite Pharma has brought it back to a familiar - and contentious - dilemma: How much should a drugmaker charge for a novel drug that has the potential to cure a disease?

Back in 2013, Gilead was battered by public outrage when it priced its hepatitis C treatment Sovaldi at US$84,000, or US$1,000 a pill. The drug, which promised to rid patients of the viral disease in three months, also faced pushback from insurers and government plans that were expected to cover most of the cost.

Pricing Kite's drug may prove just as controversial. It treats a dire condition - an aggressive blood cancer - and it's likely to come with a cost of about US$500,000 per patient, according to some analysts. O…