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Case Study

The miracle balm of Gilead (A)

By Michael Yaziji and Lisa Simone Duke

10 pages

April 2015

Reference: IMD-7-1619

In 2013, US-based Gilead Sciences launched a miracle remedy for Hepatitis C. Sovaldi cured 90% of patients with a particular type of hepatitis in 12-weeks rather than the year it usually took, with greatly reduced side effects. Sovaldi generated great excitement worldwide. The only problem was its price. At $84,500 for a course of treatment, it was beyond the means of most patients. Advocacy groups had successfully won patent concessions from pharma companies including Gilead for HIV/AIDS treatments. Once again they launched major campaigns demanding that all patients be able to access this new drug based on need rather than ability to pay. Competitors, doctors, insurers, governments and patients all had their reasons to support the adoption of Sovaldi. The dynamics among these players would heavily impact Gilead’s future as well as the lives of millions of patients.

Learning Objective

Understand the combined forces of stakeholders in exerting pressure on companies. Understand different health industry stakeholder motivations and agendas.

Keywords

Biotechnology, Innovation, Strategy, Healthcare, Healthcare Costs, Health Insurance, Pricing, Non-Governmental Organization, Pressure Group, Competitor Analysis, Epidemiology, Medecine

Settings

World/global, United States of America
Gilead Sciences, Manufacturing, Biotechnology, Healthcare, Pharmaceuticals
2013-2014

Type

Published Sources

Available Languages

English

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