Assignment Gilead Case Write-up : CASE WRITE-UP SOVALDI DRUG ANALYSIS

Gilead’s newly formed Access Operations and Emerging Markets (AOEM) division is facing an important yet daunting task of formulating the pricing and distribution strategy for Sovaldi, Gilead’s breakthrough Hepatitis C (HCV) drug. This is not the first time Gilead has introduced a drug capable of having an enormously positive worldwide effect. In the early 2000s, Gilead rose to fame and has since been praised heavily for its extraordinary efforts in combating HIV/AIDS through affordable and accessible medications. By engaging generic Anti-Retroviral (ARV) drug manufacturers in South East Asia and Africa early on as part of their go-to-market strategy, 6 million (60% of patients who require medication worldwide) have been able to afford and continuously use Gilead's drugs at a $100 per year price range in developing countries. In addition, Gilead has been able to increase its revenues three fold since introducing ARVs, by capturing 80% of the market in developed countries where payers have been able to pay a higher listing price and thus subsidize developing nations. As a result of ARV success, expectations for Sovaldi’s rollout have been high, and the public expects a similar pricing and distribution strategy that will enable low-income countries to adequately afford and assess medications. In addition, th