Major PBM Looks to Stem Gilead Sciences' (GILD) Hepatitis C Profits

Gilead Sciences (Nasdaq: GILD) is on watch Tuesday as one major pharmacy benefits manager (PBM) is looking to stem some of its costs.

Bloomberg reported that Express Scripts (Nasdaq: ESRX) could move to force Gilead to trim the $84,000 price tag on its hepatitis C (HCV) pill, Sovaldi.

Express Scripts will ask a coalition made up of health insurers, government agencies, and employers to stop using Sovaldi once a rival drug is released, which is expected sometime in 2015. Company chief medical officer, Steven Miller, said, What they have done with this particular drug will break the country ... It will make pharmacy benefits no longer sustainable. Companies just aren’t going to be able to handle paying for this drug.

Sovaldi costs $1,000 per pill, which is expected to be taken once a day for 12 weeks.

Express Scripts' annual Drug Trend Report shows that specialty drug spending rose 14 percent in 2013 and its expected to rise 63 percent through the end of 2016.

Shares of Gilead are nearly flat in early trading.

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