Article by Dr. J. Harold McClure (first published on MNE Tax)
Gilead Sciences today announced its pricing plan for its COVID-19 therapy, remdesivir, in preparation for it to begin charging for the drug in July. The announcement comes as a bit of a surprise, as many analysts predicted that prices for developed nations would be set higher.
Remdesivir may prove to be an important therapy for COVID-19 and thus extremely profitable to Gilead.
An interesting issue for transfer pricing practitioners is where Gilead’s potentially massive profits from remdesivir will be taxed.