Case Study
CASE: December 6, 2013, had the makings of a good day for Gilead Sciences, Inc. The United States Food and Drug Administration (FDA) had just approved Sovaldi,1 a hepatitis C treatment, after a wildly successful trial program that saw more than 90% of patients cured.2 In addition, the cost of the treatment would be in line with less effective hepatitis C treatments, and several times lower than the cost of treating or replacing a damaged liver, a possible consequence of hepatitis C.3 This was not the message that traveled through the media on December 6, though. Instead, the fact that the $84,000 total cost of the treatment amounted to $1,000 per pill captured the attention of the media, the public, and even government officials. While it is not uncommon for drugs to exceed this cost, none target a disease with such a large patient population. Gilead Sciences has its work cut out for itself, but it would not be the first time the company faced such an obstacle.
The news that Sovaldi had brought Gilead soaring profits was sure to further ignite public debate about the drug’s pricing, both domestically and abroad. Gilead would need to carefully consider how to respond to the situation and effectively communicate to its stakeholders.
PART A QUESTIONS
1. Who are the key stakeholders?
2. Has Gilead priced Sovaldi fairly?
3. Use the CVFCC to evaluate whether the communication strategy was appropriate
4. How should Gilead use the CVFCC to adjust and communicate its strategy moving forward?
