Africa: Diagnostic Company Cepheid Charging More Than It Should for Covid-19 Tests

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Geneva — Given the urgent global need for rapid, point-of-care diagnostic tests to deal with the continuous spread of the coronavirus COVID-19 pandemic, Médecins Sans Frontières (MSF) calls on US diagnostics firm Cepheid to allocate its COVID-19 tests (Xpert Xpress SARS-COV2) equitably and affordably across all countries. MSF called on Cepheid to refrain from profiteering off of the pandemic, by lowering the price of each test to US$5 from the nearly $20 it charges in the world’s poorest countries, in order to ensure much broader access to the test. MSF research shows the tests could be sold at a profit for $5 each.

“As countries are struggling to deal with suspected COVID-19 cases, having an accurate rapid diagnostic test is essential for real-time management of people affected with the virus, in order to tackle this pandemic,” said Dr Greg Elder, Medical Coordinator for MSF’s Access Campaign. “So many lives could be saved if corporations like Cepheid made their test available urgently and affordably in all countries.”

Cepheid has set the price for each test at $19.80 in 145 developing countries, including the world’s poorest countries where people live on less than $2 per day. Cepheid developed the Xpert Xpress SARS-CoV-2 cartridge with $3.7 million in public funding from the US government’s Biomedical Advanced Research and Development Authority (BARDA).

We need to see Cepheid take the right steps and guarantee a fair allocation and affordable supply of its COVID-19 test… to help countries that would otherwise be left behind. Sharonann Lynch, Senior HIV & TB Advisor, MSF Access Campaign

Additionally, MSF and others’ analysis of the cost of manufacturing Cepheid’s tuberculosis (TB) test – which is similar to the COVID-19 cartridge – shows that the cost of goods, including materials, manufacturing, overhead, and other indirect expenses for each cartridge is as low as $3 at high volumes and with relevant royalties expired, and therefore each test could be sold at a profit for $5.

The analysis also demonstrates that there was no significant difference between viral and bacterial cartridges that would justify substantial price variances across cartridges for different diseases. MSF called on Cepheid for a significant price reduction of their cartridges to no more than $5, including the COVID-19 test.

“It is indefensible for Cepheid to profit in this pandemic,” said Sharonann Lynch, Senior HIV & TB Advisor for MSF’s Access Campaign. “This is not the time to set the price based on what the market can bear. This critical test must be made accessible to all people who urgently need it at $5 per test to tackle this global health emergency.”

In March 2020, Cepheid received emergency authorisation from the US Food and Drug Administration for its COVID-19 test to detect coronavirus at the near point-of-care, delivering results in less than an hour. The test is designed for use on Cepheid’s GeneXpert testing platforms, which are already being used across the world for diagnosis of TB and other infectious diseases. There are an estimated 11,000 GeneXpert instruments in low- and middle-income countries.