Okay, let me get this straight ... (Mike has already touched on this, but I've gotta push this hard!)
$1,000,000,000 / 62,500 patients = $16,000 / patient .... and free beyond the initial 62,500
AU$16,000 / 1.38 = US$11,594.20
This is about 1/5 of what the French are paying ... with no cap for the French. It's also about 1/5 the best deals a few of the insurance companies in the US have been able to negotiate (if I understand correctly.) Sorry to say this to my Aussie mates but .... this cannot be attributed to any higher negotiating skills of Australian politicians or bureaucrats.
First, while Gilead clearly has no soul and a distinct business logic tunnel vision, it doesn't mean their statisticians are incompetent. I suspect that they've run the numbers and have good reason to believe that 62,500 is nearly all that will be seeking treatment in the next five years.
Even so, I see only two factors pushing Gilead to make this pricing decision.
1) Very clear, unambiguous legality of drug self-importation in Australia.
2) Dr. Freeman, Greg Jefferys and everybody here at FixHepC.com, (along with the news coverage) that is making treatment with generics start to hit the mainstream.
Gilead is terrified that the word will get out to other parts of the world.
Gilead is attempting to buy your silence.
We've seen it before. Gilead tried to sell the notion that the licensing of generics in India was about compassion; we all know it wasn't. Gilead had a very clear idea that their patent would be rejected in India and was trying to preempt a flood of generics by contractually restricting sale to the poorest countries ... no generosity or goodwill about it.
Same with Egypt, Brazil and elsewhere, the prices were offered to protect their most lucrative territories.
FixHepC.com has become the global center of generic treatment information. While there are several Brits and a few Americans and a spattering of others here, most of the current 646 registered forum members and of the maybe about 50 people actually talking a lot on this forum are Australians. Gilead hopes that with this price concession that this web site will die.
We have to make sure that does not happen.