Hepatitis C has already effected 180 million individuals all around the world. Gilead had come up with an innovative drug to combat with this disease. In the US market a pill was priced at $1,000. The company had to decide a way to market its new product in the affected regions of the world.
The company marked a significant name in its work in the field of HIV/AIDS and to more than 50% of patients on Anti-Retroviral (ARV), the company is providing its innovative medicines. However, the major role for this was played by generic licensing, which minimized the cost of treatment regimen from $10,000 per year to $100.
Whether it would be effective for the company to replicate its strategy for Hepatitis C? If so, what would be reaction from its US Healthcare customers, who were paying $84,000 per patient? Along with this, the company had to maximize its shareholders value, who made a significant contribution to form the new drug for Hepatitis C through an acquisition of around $11 billion.
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