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Louisiana Launches Hepatitis C Innovative Payment Model With Asegua Therapeutics, Aiming to Eliminate the Disease

June 26, 2019

BATON ROUGE, La. & FOSTER CITY, Calif.--(BUSINESS WIRE)--Jun 26, 2019--

Today, Governor John Bel Edwards joined Secretary Rebekah Gee of the Louisiana Department of Health, Secretary James LeBlanc of the Louisiana Department of Corrections, and Asegua Therapeutics LLC, a wholly-owned subsidiary of Gilead Sciences, Inc. (Nasdaq: GILD), to announce a deal that will allow the implementation of an innovative payment model for hepatitis C treatment, part of Louisiana’s plan to eliminate the disease.

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“This new model has the potential to save many lives and improve the health of our citizens. It is an important day for our state, for our partner Asegua Therapeutics, for providers, but most importantly for the patients and their families who will benefit from treatment,” said Governor Edwards. “Asegua was willing to come to the table to work with us to help Louisiana residents and we are pleased to initiate this five year partnership. Ultimately, our goal is to eliminate this disease in Louisiana, and we have taken a big step forward in that effort.”

In the United States, hepatitis C kills more people than all other infectious diseases combined. At least 39,000 people in Louisiana’s Medicaid program and prison system suffer from hepatitis C infection.

“An elimination plan and innovative payment model will ensure that we can cure this deadly disease and prevent long-term illness and disability in those who have it,” said Dr. Rebekah Gee, secretary of the Louisiana Department of Health. “The Department of Health’s goal is to treat at least 31,000 people by the end of 2024 and eventually eliminate this disease.”

After extensive research and work with policy experts across the nation, the Department of Health released a solicitation of offers in January of 2019 in search of a pharmaceutical company willing to partner with Louisiana on a subscription model. Asegua Therapeutics was announced as the selected partner in April, and through subsequent discussions the parties have agreed to a modified model.

“We are pleased that Asegua has the courage to be a pioneer and chart a new path forward that will allow us to save many lives and improve the health of our citizens,” added Gee.

The innovative payment model for Louisiana addresses the needs of patients and joins the goals of both Louisiana and Asegua to extend a cure to those in need.

“This partnership will have a direct and immediate impact on the most vulnerable populations with hepatitis C – people who are on Medicaid or who receive care through the state corrections system. These populations are disproportionately affected by hepatitis C and often face the greatest difficulty in accessing care,” said Gregg Alton, Chief Patient Officer at Gilead Sciences. “We are committed to supporting efforts to eliminate hepatitis C in communities around the world and are excited to partner with the visionary leaders in Louisiana to make this public health opportunity a reality in this state.”

The innovative payment model allows the state to purchase an unlimited amount of Asegua’s direct-acting antiviral medication, the authorized generic of Epclusa ® (sofosbuvir/velpatasvir) to treat patients within Louisiana’s Medicaid and Department of Corrections populations and caps the State’s medication costs.

“With this model to purchase hepatitis C medications, we can cure those within the state facilities who have this life-threatening illness and prevent the spread of the illness within our facilities,” said James LeBlanc, secretary of the Louisiana Department of Corrections. “We will also work closely with the Department of Health to implement a plan to screen and treat the local level population either while incarcerated or upon release into supervision. Most importantly, we can make sure these men and women have an opportunity to be even more successful and healthy when they return to their communities.”

The Department of Health and Asegua completed and signed a formal contract for the purchase of Asegua’s hepatitis C medication, the authorized generic of Epclusa, over five years, and for people enrolled in the Medicaid program and incarcerated people in Louisiana. The Department of Health continues to implement an elimination plan that engages partners across the state to educate the public on the availability of a cure and reach out to high-risk populations for screenings; connect people living with hepatitis C to care; expand provider capacity; and establish partnership across the state to eliminate hepatitis C in Louisiana.

About Louisiana Department of Health

The Louisiana Department of Health strives to protect and promote health statewide and to ensure access to medical, preventive and rehabilitative services for all state residents. The Louisiana Department of Health includes the Office of Public Health, Office of Aging & Adult Services, Office of Behavioral Health, Office for Citizens with Developmental Disabilities, and Healthy Louisiana (Medicaid). To learn visit www.ldh.la.gov or follow us on Twitter, Facebook, or our blog.

About Asegua Therapeutics

Asegua Therapeutics is a wholly-owned subsidiary of Gilead Sciences, Inc. Gilead Sciences is a research-based biopharmaceutical company that discovers, develops and commercializes innovative medicines in areas of unmet medical need. The company strives to transform and simplify care for people with life-threatening illnesses around the world. Gilead has operations in more than 35 countries worldwide, with headquarters in Foster City, California. For more information on Gilead Sciences, please visit the company’s website at www.gilead.com.

Forward-Looking Statements

This press release includes forward-looking statements related to Asegua Therapeutics, a subsidiary of Gilead Sciences, Inc., within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors, including the risk that the parties not may not realize the potential benefits of this partnership. These risks, uncertainties and other factors could cause actual results to differ materially from those referred to in the forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. These and other risks are described in detail in Gilead’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, as filed with the U.S. Securities and Exchange Commission. All forward-looking statements are based on information currently available to Gilead, and Gilead assumes no obligation to update any such forward-looking statements.

ASEGUA and the ASEGUA logo are trademarks of Asegua Therapeutics LLC. EPCLUSA and GILEAD are trademarks of Gilead Sciences, Inc. or its related companies.

For more information on Gilead Sciences, please visit the company’s website at www.gilead.com, follow Gilead on Twitter (@GileadSciences) or call Gilead Public Affairs at 1-800-GILEAD-5 or 1-650-574-3000.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190626005539/en/

CONTACT: Louisiana Department of Health Contact:

Kelly Zimmerman, Media

(225) 223-1194

Kelly.Zimmerman@la.gov

Asegua Contacts:

Sung Lee, Gilead Investors

(650) 524-7792

Sonia Choi, Media

(650) 425-5483

KEYWORD: LOUISIANA EUROPE UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: BIOTECHNOLOGY PHARMACEUTICAL FINANCE HEALTH HOSPITALS PROFESSIONAL SERVICES

SOURCE: Gilead Sciences, Inc.

Copyright Business Wire 2019.

PUB: 06/26/2019 11:30 AM/DISC: 06/26/2019 11:31 AM

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