Gilead is proud of the value its innovative products offer to patients throughout the world, and we believe that we should be fairly rewarded for that value. We also understand that many countries, particularly in the developing world, are unable to afford the full value of our products to provide life-saving medications for all of their patients in need.

For this reason, in 2005, we developed a system of tiered pricing where prices in the wealthiest nations of the world are based on the product's full value, and pricing discounts are given in low, middle and upper tiers based on a country's ability to pay. The main criteria we use to determine ability to pay are gross national income (GNI) and HIV prevalence.

With these tiers as guidelines, we work independently and in collaboration with partners to establish fair pricing. Actual pricing may differ among countries based on other factors, including common markets / cross border trade, reference pricing and the impact of in-country taxes and duties, as well as distribution costs.

Tiered Pricing

Low-Income Pricing Tier
Countries in this tier generally have a GNI of less than $1,000 and / or an extremely high burden of HIV.* In this tier, Truvada and Viread are available at $26.25 and $17.00 per month, respectively. These ex-factory prices are based on Gilead's cost of goods and production volumes. Countries in this category include those that are hardest-hit by the HIV/AIDS epidemic. Based on current manufacturing costs and other operating costs in these markets, our expenses exceed our revenues in this tier.

Lower Middle-Income Pricing Tier
Countries in this tier generally have a GNI of less than $3,000.* Truvada and Viread are available at $45.00 and $30.00 per month, respectively.

Upper Middle-Income Pricing Tier
Countries in this tier generally have a GNI of less than $10,000.* Prices in these countries represent as much as a 70 percent discount relative to high-income regions of the world.

High-Income Pricing Tier
Countries in this tier generally have a GNI of more than $10,000.* We establish prices in the United States, Canada, the European Union and other high-income countries that we believe are fair and reflective of value represented by our innovative therapies.

*While we regularly evaluate our tiers to ensure that our prices remain affordable for countries and patients, the tiers were established in 2005, and, therefore, economic factors, currency fluctuations, inflation and changes in HIV prevalence rates since that time may cause some inconsistency. In addition, since there are multiple factors that determine the tier in which a country may fall, countries in the same tier may have substantially different GNIs or HIV prevalence rates, and countries in different tiers may have similar GNIs and HIV prevalence rates.

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