After months of planning, the Louisiana Department of Health has chosen a new Gilead Sciences (GILD) subsidiary to supply a hepatitis C medicine under a so-called Netflix payment model.
The deal revolves around subscription-based payments. Asegua Therapeutics, the Gilead unit, has agreed to provide the state Medicaid program and Department of Corrections with unlimited access to an authorized generic version of the Epclusa treatment for a fixed amount of money for five years, according to the state Department of Health. A contract is expected to be finalized by June 1.
The state has been exploring a subscription model in response to ongoing budget concerns over the medications. With this approach, the hope is to create a win-win. Gilead would gain sales that otherwise might not exist and avoid spending money on marketing, while also gaining goodwill for its effort. The state, meanwhile, limits its spending as it finds a way to provide treatment to more people.
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