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?
