Philadelphia Transit Agency Sues Gilead, Claiming Sovaldi Price-Gouging

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."

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