carl. >> we're getting a news alert on the story of gilead.on javers, in washington this morning. >> weave been monitoring this press conference on capitol hill with senators widen and grassley. they are calling into question gilead science's decision to price its hepatitis c drug at $1,000 per pill saying they did that regardless of the human consequences. well, now we have a statement here from gilead sciences saying they respectfully disagree with the report. in a statement that was sent to our meg terrell. they say we stand behind the pricing of our therapies because of the better than fits think bring to patients and the value they bring to providers and our entire health care systems." obviously, guys, this controversy over pricing and where the appropriate price will be for customers, the government, and private insurance companies is not going away any time soon. >> yes, indeed. thank you. >> up next, why the fed is looking for a lot less from the job market before deciding whether to raise interest rates? but, first, rick santelli, wh

today a senate report found that gilead science, which makes a cure for a fatal form of hepatitis, is more interested in profits than patients. the cure was invebtsed under the leadership of a celebrated doctor in the department of veterans affairs, but at $1,000 a pill, even the v.a. can't afford to save the lives of vets who need it. chip reid has been looking into this. >> reporter: in 2013, vietnam had five years to live. he had stage four liver disease caused by hepatitis c. it has infected as many as 230,000 veterans. most contracted it in vietnam where it was spread by battlefield blood transfusions and vaccinations. >> the longer it goes, the harder it is to treat. >> reporter: after decades of suffering, earlier this year yisrael was overjoyed to learn there was s a cure. >> i felt like my prayers were answered. >> i am ready to be cured. >> reporter: the drug, sofosbuvir, is sold as sovaldi' harvoni and claims to cure up to 99% of hepatitis c patients, but there's a catch. the retail price far 12-week treatment is $84,000. the department of veterans affairs gets a 50% discou

gilead, the company that now owns and sets the price on sovaldi and harvoni, told us that the cost is in line with the previous standards of care. but in this 2013 trade journal, dr. schinazi said it only costs about $1,400 to manufacture the full 12-week treatment. that's less than 2% of the retail price. why is it so much more expensive than what it costs to make it? >> that's a good question. i mean, i think the price will come down evevtually. >> reporter: zion yisrael wonders if the price will come down in time to save him, in the two years his doctor says he has left. we're still alive and we come here, and because of $84,000, you kn, we can't get cureda medication produced by the country that we're protecting? >> reporter: dr. schinazi says the drug he helped create has helped save hundreds of thousands of lives around the rld, but, scott, the va concedes that funding for u.s. veterans is limited. so far they've treated about 35,000 vets, just 15% of the veterans infected with hepatitis c. >> chip reid with a revealing story in our washington newsroom. chip, thanks. >>> patient

gilead, the company that now owns and sets the price on sovaldi and harvoni, told us that the cost is in line with the previous standards of care. but in this 2013 trade journal, dr. schinazi said it only costs about $1,400 to manufacture the full 12-week treatment. that's less than 2% of the retail price. why is it so much more expensive than what it costs to make it? >> that's a good question. i mean, i think the price will come down eventually. >> reporter: zion yisrael wonders if the price will come down in time to save him, in the two years his doctor says he has left. >> it's not right that the vets, we're still alive and we come here, and because of $84,000, you know, we can't get cured, a medication produced by the country that we're protecting? >> reporter: dr. schinazi says the drug he helped create has helped save hundreds of thousands of lives around the world, but, scott, the v.a. concedes that funding for u.s. veterans is limited. so far they've treated about 35,000 vets, just 15% of the veterans infected with hepatitis c. >> chip reid with a revealing story in our washi

me go tirl is here and has those details. >> let's start with gilead.oday a report coming out from senators widener and grassley looking at the price of their hepatitis c drugs. this is an 18 month long investigation, the company provided them 20,000 internal documents, talked with a lot of different experts and conclude that gilead maximized the revenue of these drugs at the expense of access and affordability. a lot of people are saying gilead is a for profit company of course it was going to do that and the stock hasn't been affected too much by this, but gilead did come back and say they respectfully disagree with the conclusions of the report saying the way they priced it and even with the discounts that have been given on it now it's lower priced than previous regimen with better koour rates and better tolerability. this is another look at the pricing at drugs and taken in the context text of everything going on it's pushing more pressure on the system. this is a break through koour and these are the things we should be incentivizing but it has ba

>>> today, a senate report found that gilead sciences, which makes a cure for a fatal form of hepatitis, is more interested in profits than patients. the cure was invented under the leadership of the celebrated doctor in the department of veterans affairs. but at $1,000 a pill, even the va can't afford to save the lives of vets who need it. chip reid has been looking into this. >> reporter: in 2013, vietnam veteran zion yisrael was told he had five years to live. he had stage four liver disease caused by hepatitis c. which has infected as many as 230,000 veterans. most contracted it in vietnam battlefield blood transfusions and vaccinations. >> the longer it goes, the harder it is to treat. >> reporter: after decades of suffering, earlier this year yisrael was overjoyed to learn there was a cure. >> i felt like my prayers were answered. >> i am ready to be cured. >> reporter: the drug, sofosbuvir, is sold as sovaldi and harvoni and claims to cure up to 99% of hepatitis c patients, but there's a catch. the retail price for a 12-week treatment is $84,000. the department of veterans affair

>>> today, a senate report found that gilead sciences, which makes a cure for a fatal form of hepatitis, is more interested in profits than patients. the cure was invented under the leadership of the celebrated doctor in the department of veterans affairs. but at $1,000 a pill, even the va can't afford to save the lives of vets who need it. chip reid has been looking into this. >> reporter: in 2013, vietnam veteran zion yisrael was told he had five years to live. he had stage four liver disease caused by hepatitis c. which has infected as many as 230,000 veterans. where it was spread by battlefield blood transfusions and vaccinations. >> the longer it goes, the harder it is to treat. >> reporter: after decades of suffering, earlier this year yisrael was overjoyed to learn there was a cure. >> i felt like my prayers were answered. >> i am ready to be cured. >> reporter: the drug, sofosbuvir, is sold as sovaldi and harvoni and claims to cure up to 99% of hepatitis c patients, but there's a catch. the retail price for a 12-week treatment is $84,000. the department of veterans affairs gets

gilead charged $1,000 per bill and uproar that gilead was able to accept the senate investigation found the high pricing significant limited patient access. the drug is so expensive the it to vets. express scripts says it's offering a dramatically less expensive alternative to a life saving drug. they charge $750 per pill for daraprim. the cheaper alternative will be available from express scripts for about $20 for a bottle of pills. >>> could your christmas lights be affecting your wi-fi network? every year, those who keep track of these things observe a major spike in wi-fi-related complaints around the holidays. anything that plugs in has the potential to create interference, so it isn't though terribly likely your life a at issue unless you're going to a scene that can be seen from the moon. >> they waste no time putting up those lights too. jill wagner at the new york stock exchange, thanks a lot, >>> hoverboard hazards.brand by americans and their dentists? because it leaves your mouth with a level of clean like you've never felt before. get healthier gums in 2 weeks. innovation a

michael yee says the fda's decision may have an impact as much as 5% on shares of gilead but price is a big question for these drugs. investors will be watching closely to see if merck offers a major discount to compete. investors hope the first month of the new year brings better news than the last six months of the old one. i'm meg terrell. >> did you ever wonder where all that money the movies make at the box office goes? we'll tell you who gets what and why it's so important. >> here's a look what to watch for on wednesday. housing once again grabs the headlines with two doo points. first with mortgage applications and then pending home sales for november. analysts are expecting a solid rise which is a good sign for housing activity. >>> and finally,ing with crude being a driver for stocks recently, investors will be keeping a close eye on oil inventories. >>> we told you last night that "star wars" the force awake ands was the fastest movie ever to reach the $1 billion mark. what does that mean and why is it significant? julia boorstin breaks down the box office economics. >> rep

but on gilead, do they have to make an acquisition or what has to move the stock. it is sitting near the $100 level it seems like forever. is there something they need to do or something in the pipe that could trade it up to the upside, trading at eight times. >> that is great. the stock has been cheap, cheap for a while. this is one that will basically be sitting and grinding because you have the merck approval coming, you have people worried about pricing and i think you have people worried about what the hep c numbers look like. until they do a meaningful deal, which i don't think they will do this year or unless something hits out of the pipeline, a drug for sorosis, i think that stock is just a grinder this year. >> michael, you mentioned the huge shift in flows. part of that is investors locking the gains over the last few years. but i'm sure part is the biotech taurus. are there a sense that people got burned by the sector and want to have nothing to do with it going into 2016. >> i think there is a little bit of biotech fatigue. that t has been three, four,

we have been awarded $517,000 by gilead sciences to treat prisoners in the san francisco county jailor hepatitis c. the project which we are calling chip, curing hiv and incarcerated patients is a one year, pilot demonstration, project that will be conducted in two urban jails in the san francisco county jail and in the santa clara. the pilot project will be funded by gilead investigator, sponsored research, you it, and it is intended to treat, 100 hep c, positive prisoners in the county jail. the purpose of this project is to assess the feasibility of initiating treatment with county jail prisoners while they are in custody and the jail setting. this is a group of people who are of high risk for hepatitis c and frequently have less access to this very costly treatment. this grant will allow us to start treatment, with hep c positive clients. and in san francisco, the average length of stay is 24 days. this will allow us to start people and to test people to start them on the hep c and drug and, upon release, we are funded to offer service and we have two navigater whose will move pe

gilead are down on the year. some act well. you lost the leadership. i think you can keep it focused here. you lost one of the biggest nasdaq leaders. if you go into the new year and people get focused on the uncertainty about regulation and pricing, these guys are going to be right. there will be lower lows. >> up next -- will they or won't they? will opec agree on any production cuts on the final meeting tomorrow? a preview what to expect. >>> mining for gold. one trader is betting big money gold miners are about to surge. when you're not confident your company's data is secure, the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most. some of these experimentse're notmay not work.il. but a few might shape the future. like turning algae into biofuel... ...new technology for capturing co2 emissions... ...and cars twice as efficient as the averag

gilead should be a huge event if it buys something. >> i look at the space. you get paid for innovation, paid for great growth prospects. the large cap names, i think the ibb in general will outperform the market by 15% this year. >> in 2016. >> with all the presidential candidates saying there is too much spending? >> the bar has been set. >> i bet you it will be down 15%. >> the pricing fears reset the bar. you've got a set-up going into '16 that's favorable. we are creating higher lows in the ibb. we defended the ibbs and they are at $300 on this desk. i will tell you that the larger names are really going to perform well, in my opinion. people understand the small to mid cap space will pull it off. >> larger names like gilead are attractive. some of these names underperformed the index. it gets back to a market call. on an earnings growth perspective, it's difficult to argue the biotech sector isn't giving you the best stuff. if we are talking about all the things we are talking about, i think about fed, volatility, a world where if these guys are right a

gilead sciences first break through pill now has more expensive pills.it could pile up huge costs at federal and state health care programs some say. >>> former maryland attorney general doug gansler has been named as a special prosecutor to lead in an investigation in nearby pennsylvania. he and his team will investigate allegations that other judges and officials in pennsylvania exchanged pornographic emails while using state owned computers. last year he ran unsuccessfully for governor of maryland. >>> coming up, the ellerly victim of a home -- elderly victim of a home invasion speaks out in hopes of putting his female attacker news reporters: it's a fish, but it's been changed. genetically altered by scientists. critics call the process creepy, and label it frankenfish. narrator: genetically engineered salmon was just approved by the fda - no labels required. disturbing, right? get this. if your state wants to label gmos, congress is trying a year-end sneak attack to block your right to label. call congress. demand clear labels, not high tech gimmick

say we think you will pay the price because we think you will have to >> reporter: the drug maker gilead denied to comment, but they argued that the one-time cost: with drug drugs already as much as 15% of state medicaid budgets, more are being invented. these can could be the first test says of how far america's health care budget can be stretched and whose cure society is willing to pay for. this woman who has no history of iv drug use sees the repeated denials as proof insurers don't care if she lives or dies. >> i think that's what the insurance companies want you to do. they want you to get discouraged. >> reporter: she isn't about to give up. >> i'm worth having this drug. i'm wrorth it. >> reporter: even if it's a hundred thousand dollars >> yes. even if it's a hundred thousand dollars. my life is worth saving. >> reporter: she is right. since we first told you her story, she appealed the fourth denial and has now finally been approved. weeks from now she hopes that the treatment will finally leave her hepatitis c free. that's america tonight. tell us what you think at al jazeera.

than 400 million dollars when he sold his company for eleven billion dollars to pharmaceutical giant gilead in 2012. (sot) (dr. raymond schinazi) (00 18 02)can you see how that looks to an average veteran?i'm sorry you're taking it personally. narr 7: if you're surprised that a government scientist can make that kind of moneygiven federal laws surrounding conflicts of //00 34 17 // 00 18 02)has ybody ever questioned the arrangement that you have that allows you to become very wealthy while working 7/8th's of your timeith the government?nobody has questioned anything yet. i think i've done everything, i've disclosed everything to the va. narr 8: the va declined our request for an interviewbut approved the arrangment: "federal employees are allowed to invest in private companies, provided all conflict of interest rules are followed".narr 9: gilead, the company that now owns price on sovaldi and harvoni, told us the cost reflects the innovation of the medicines" and is "in line with the previous standards of care." narr 10: but in this 2013 trade journal, dr. raymond schinazi said it only cost

gilead is already on the market with a huge market share. avi is out there, too. is merck going to offer a discount to snap up market share? >> these are the events we see stocks thrown up in anticipation, even in just today's session. these are some pretty big moves that could be a bigger market moving events. >> you have already seen them move a lot. it's one of the biggest movers of the entire year, doubling on positive progress toward get ago principle of law. it will be interesting to see how the stock reacts to the drug. >> whether is the next big conference? because that tends to be the macro volatility generator in bioteches, when you go to the big conferences. >> yeah. the investor conference j.p. morgan comes out the second half. fwhut ter but in terms of clin calls, there is a lot in april in terms of conferences and there is more smaller ones. >> thank you. >> all right the overall, stocks are having a pretty good little year end run hitting session highs. the dow up is 200 points. look at the map right now. only one dow stock is down. that is "star wa

then, of course, we have the big biotech companies themselves like a gilead, gilead has one of the biggest balance sheets in biotech. it's got to shore up the pipeline. after help c, what a wonderful anchise it's been. but there are concerns that help c franchise has been peaking. we keep seeing numbers and they have to fill in that pipeline on the back end. >> all right. thanks very much. i'll be with you in a few minutes on "power lunch" part two. and we'll see you oshgs being, at 5:00 on "fast." we're watching oil prices as we have been all day. right now about a half hour away from the close there. oil helps sink the market yesterday. not really helping much today. if you thought texting while driving is dangerous, wait until you hear what more and more drivers are doing behind the wheel. i don't even want to know. "power lunch" is back in two. anything worth pursuing hard work and a plan. at baird, we approach your wealth management strategy the same way to create a financial plan built to last from generation to generation. we'll listen. we'll talk. we'll plan. baird. nobody's hurt,

certainly things like sovaldi, made by gilead pharmaceutut als, for hepatitis c, coming out at $86,000 is an incredible price to pay for a know, i'm sure many of the viewers have heard about daraprim that was purchased by turing pharmaceuticals who then increased the price 5000%. now, those are extreme cases but i think it does show something a little bit larger about the state of brand name pharmaceuticals. if we talk about the cost of medications in society as a share of total healthcare spending, pharmaceutic als have doubled since the early 90s. we went from about 5% of all healthcare spending in the early 90s being spent on pharmaceuticals to about 10% today. a lot of that increase is increased prices of very expensive brand name products. if we talk about generic products, which are actually about 85-90% of all products dispensed in the united states, those products have generally stayed about even or even a little bit down, but even within that category, there are some generic drugs that have had extremely high price increases as well. definitely within brand name drugs, big pri

we have been awarded $517,000 by gilead sciences to treat prisoners in the san francisco county jailre calling chip, curing hiv and incarcerated patients is a one year, pilot demonstration, project that will be conducted in two urban jails in the san francisco county jail and in the santa clara. the pilot project will be funded by gilead investigator, sponsored research, you it, and it is intended to treat, 100 hep c, positive prisoners in the county jail. the purpose of this project is to assess the feasibility of initiating treatment with county jail prisoners while they are in custody and the jail setting. this is a group of people who are of high risk for hepatitis c and frequently have less access to this very costly treatment. this grant will allow us to start treatment, with hep c positive clients. and in san francisco, the average length of stay is 24 days. this will allow us to start people and to test people to start them on the hep c and drug and, upon release, we are funded to offer service and we have two navigater whose will move people when they were released from cust

we have been awarded $517,000 by gilead sciences to treat prisoners in the san francisco county jail for hepatitis c. the project which we are calling chip, curing hiv and incarcerated patients is a one year, pilot demonstration, project that will be conducted in two urban jails in the san francisco county jail and in the santa clara. the pilot project will be funded by gilead investigator, sponsored research, you it, and it is intended to treat, 100 hep c, positive prisoners in the county jail. the purpose of this project is to assess the feasibility of initiating treatment with county jail prisoners while they are in custody and the jail setting. this is a group of people who are of high risk for hepatitis c and frequently have less access to this very costly treatment. this grant will allow us to start treatment, with hep c positive clients. and in san francisco, the average length of stay is 24 days. this will allow us to start people and to test people to start them on the hep c and drug and, upon release, we are funded to offer service and we have two navigater whose will move

you see companies like amgen and gilead and they need to buy that to balance the patent expirations.le, that company doesn't have a marketed product, but it fills a pipeline void. so actually, the whole ecosystem is working together. it is creating innovation but in different pockets. emily: so are you rushing to get a new drug to market because you see all of this activity out there? do you see it as a possible benefit? beth: the larger question is, overall, for the biotech companies, the share prices have gone up on average about 4%. for biotech entrepreneurs, it can be a good thing. pfizer now has more cash offshore that they can leverage to buy new things. emily: do you see more m&a in 2016 in this space? beth: absolutely. to the 15 has been the largest amount of large-scale m&a. bellweathern the year. we are projecting to see the same thing in 2016. it is a macro dynamic. the biotech industry is a big one and they see patent expirations coming. they need new products and they're going to get that by acquiring smaller companies. emily: all right, beth seidenberg is sticking with

i think they do a lot better like gilead and amgen. >> joe? >> one thing that troubles me is interest rates and the talk about 100 basis points higher from where we sit today at this point next year. that's very complicated. very data dependent. don't play that game. >> nuance, carl icahn name, stock hitting 52-week highs. >> "power lunch" starts now. >> scott, gentlemen, thank you very much. welcome, everybody, to "power lunch." weak manufacturing numbers pushing the markets from the highs of the day. is manufacturing entering a recession? >> at the same time though, we're seeing strong numbers in the auto sector again. in fact, this could be the best november in 15 years. >> analysts debate the financials. john stump on cnbc today. if the fed makes a move this month, do you want to be in es

analysts expect drug giants gilead, johnson & johnson and am jen to employ some of their serious cash hordes. while incyte is a top pick of a target. analysts say a near-term change in policy may be unlikely. ipos slow their pace. bio tech is seeing hundreds of new companies erngt the public market. experts say it will be more due to lack of supply than lack of demand. analysts say the coming year will bring a unin number of eve that can make or break these stocks. an fda decision for intercept, sarepta and others. >> you joined cnbc what, 18 months ago, and, boy, you were thrown into the fire, so much happening. big stories. >> a lot of stocks moving. what people are really saying is the environment has kind of shifted. what i'm hearing is they're just feeling kind of exhausted after the second half of the year they've had. you see news from today, seeing an 80% drop on clinical trial data. so as we head into 2016, a lot of folks say this is the year when you have to be really smart about picking stocks. you can't just invest broadly in etfs and expect it to go up and beat the broade

analysts expect drug giants gilead, johnson & johnson and amgen to deploy some of their serious cash hoards while insight is a topic as a target. while there is political scrutiny analysts say a near term change in policy may be unlikely. biotech has seen hundreds of new companies entering the public market in the last few years and experts say if this run ends it will be more due to lack of supply than lack of demand. >>> and biotech gets binary. analysts say the coming year will bring a number of events that could make or break certain biotech stocks. they point to late stage clinical trial data, an fda decisions for intercept, serepta and others. >>> as we talked about binary events in biotech none is better instated by chi marks today. it's not a market where you can buy into an etf and expect biotech to go up. ibb we have had a rough year in the ibb etf, the biotech etf still has done fairly well, up 11% for the year, it's down about 1% today, but -- so this year might be a little different. >> you mentioned political scrutiny, next year, of course, presidential election year, p

we have been awarded $517,000 by gilead sciences to treat prisoners in the san francisco county jail for hepatitis c. the project which we are calling chip, curing hiv and incarcerated patients is a one year, pilot demonstration, project that will be conducted in two urban jails in the san francisco county jail and in the santa clara. the pilot project will be funded by gilead investigator, sponsored research, you it, and it is intended to treat, 100 hep c, positive prisoners in the county jail. the purpose of this project is to assess the feasibility of initiating treatment with county jail prisoners while they are in custody and the jail setting. this is a group of people who are of high risk for hepatitis c and frequently have less access to this very costly treatment. this grant will allow us to start treatment, with hep c positive clients. and in san francisco, the average length of stay is 24 days. this will allow us to start people and to test people to start them on the hep c and drug and, upon release, we are funded to offer service and we have two navigater whose will move

that began to years ago when gilead listed a miracle to treat hepatitis c for $1000 per pill.ompany is taking a different approach in india. tell us what's going on in india? there is a long history that goes back to a lot of other drugs. that causedhis drug a massive outrage when they said it would cost thousand dollars in the u.s. in india, that's more than many of those people make in one year. to license with some indian generic manufacturers for selling this for around $4.29 . furtherected to fall it's an interesting dynamic where you have these huge disparities in pricing beat rich, wealthy nations in the west like the u.s. and for developing countries like india or the burden of disease is exceptionally high and there is no way they can afford these medications. -- 11 indianvy and companies are making generic versions of this. >> it's a classic example of what happens in a generic marketplace. we see this in the u.s. and we get generic drugs. you see medicines that cost thousands of dollars that really only cost is to produce. when a number of generic makers come o it b

another portion of the north bay looking at rain coming down at 680 it comes together at the core gileadjunction with to complete two or a sure you will we're expecting as it comes through that act clearly increase the wave activity we want to make a quick lunch in the we are looking at pretty serious wave especially right along the coastline and the peninsula put to deadly with cars will be very careful of your out the beach today that is the cost instead it went 20 mi. per hour the guest to their expected to get out of 34 even 50 mi. per hour it means there will be a lot of debris flying around in a driving around be very careful. >>james: but also bring down power lines and back to lead to some power outages pg&e will be watching that very carefully here is a quick look and a short forecastle we have friday and saturday. >>robin winston: they go way too fast in the ring a lot of minor crashes right now a kid sees nothing to made to slow you down to it than mine drive that were reduced speed leave early double your normal drive times you can be the rush before it's too bad they're awfu

the big four, amgen, celgene, biogen and gilead, all doing fairly well except biogen, down due to a slowdownf its multiple sclerosis drugs. a lot of catalysts coming ahead for biogen. the second half so rocky for the index. investors saying they're exhausted. looking looking ahead to january, there should be a lot of catalysts. >> it's been one of the futures of the bull market, biotech and healthcare is a place investors look to in a slow-growth year what are they saying? can that continue into 2016? >> for biotechs specifically, they're not certain it will have another year of outperformance. in january of last year we asked every ceo whether they thought biotech would outperform again. they all said yes for 2015. going into 2016 on, it sounds like the sentiment has changed. it doesn't sound like you can expect it to youtperform the broader market. >>> winter weather wreaking havoc on travel. thousand of flights being canceled or delayed today. and oil rebounding today after a big fall yesterday. find out what it means for energy stocks which are strong right now. wti crude up almost 2.5%.

are fully authorize this emphasis put on a public health to accept and expend a $517,000 grant from gileadciences incorporated for program entitling during hcv in incarcerated patients for the period through march in incarcerated patients for the period through march 31, 2017 >> same house, same call without objection the resolution was adopted unanimously >>[gavel] ? item 55 >> item 55 is an ordinance to man planning code to establish the japan town neighborhood commercial district revising very clinical sections to make conforming and other technical changes revising the zoning to add japan town and city in making other appropriate findings >> just quickly, this is in the work that jim had time for many many years at like to thank the japan town has force and bob-for his. steve was a met the planning department and all the members of the japan town community came together to make this possible. it's a major step in the right direction and colleagues i would appreciate your support. >> with academically take this item same house, same call? >> matter present, supervisor peskin >> it would