Dissecting the "non luck" factors of Gilead's violent death

Source: on November 25, 2014, the perfect combination of multi-level techniques, such as public praise, cost effectiveness, intelligent business decision-making, management area coordination and so on, made sovaldi become a legend in the blockbuster In the first year of listing, Google's sovaldi swept the U.S market with the momentum of destruction In 2014, its sales will be between 10-11 billion dollars Compared with Pfizer's flagship drug Lipitor, Lipitor's sales in the first year of listing will be 1 billion dollars, even if Lipitor's sales are only 13 billion dollars, while sovaldi's sales will be only 13 billion dollars Four quarters after the IPO, it has already sold $7.5 billion, which is about to break the record, and even three major retailers, amerisourcebergen, Cardinal Health and McKesson, have followed suit Compared with sovaldi, other so-called heavy bombs are even more dwarfed The quarterly sales of Gleevec, Avastin, Revlimid and other heavy bombs are on the horizon The total sales of Gilead in the third quarter of 2014 was 5.97 billion US dollars Sovaldi accounted for half of its sales, about 47% Sovaldi has become the Legend of heavy bombs Table 1 comparison data source of quarterly sales of "special drugs" in the United States after its launch: ISI group, but Geely's sovaldi is not winning praise everywhere In fact, it faces many challenges First of all, its price is often criticized The U.S Congress has tried to intervene in Geely's pricing for many times, believing that the 12 week cost of $84000 is really unacceptable, and each tablet actually reaches 1000 US dollars Moreover, many medical insurance companies refuse to use sovaldi or set very strict medication regulations for the insured, and some even criticize Gilead's shameful selling of non orphan drugs at the price of orphan drugs (the number of patients with hepatitis C in the United States is more than 2.4 million), but can these negative effects scare a company in the top 25 (Table 1) global sales industry? Table 2 top 25 data sources of global sales in the pharmaceutical industry in 2013: global data Geely de seems to have no cold for these negative news Harvoni, a new drug just approved in October this year, has a cure rate of 96% in 12 weeks Geely de even "went crazy" and set the cost of a course of treatment as 95000 US dollars, about 1125 per tablet Dollar, you are right This is Gilead's way to respond to the price problem, because Gilead thinks that the price of sovaldi and harvoni is not the most expensive (Table 2), and the goods are worth more than the money They are indeed among the most expensive drugs in circulation in the United States Only orphan drugs are more expensive than them Table 3 ranking data source of 30 day expenditure of drugs in circulation in the United States: how does express scripts Gilead succeed? 1 Why so many hepatitis C patients need to obtain sovaldi no matter using medical insurance or private insurance or even at their own expense? Because it can solve the problems that have plagued the patients for many years, and the data can reflect everything This year, there are 117000 prescriptions in the United States, about 10 billion US dollars The story of "magic curative effect" in the first quarter helped Geely's subsequent sales to become stronger This is a classic case of word-of-mouth marketing in the pharmaceutical industry The first quarter's sales is the key to Geely's success There are about 2.4 million patients with hepatitis C in the United States Now Geely's market share is less than 5% It is not difficult to imagine the future sales of sovaldi and harvoni 2 "Cost effectiveness" Gilead has successfully grasped the middle point of cost effectiveness Hepatitis C is a chronic disease with high medical costs Solvaldi was rarely able to cure it before With the development of the disease, hepatitis C patients can only undergo liver transplantation because of liver necrosis The first year cost of liver transplantation is about 650000 US dollars In terms of cost effectiveness, sovaldi is analyzed The price is reasonable, so the success attracts a large number of patients more inclined to choose sovaldi 3 Once the efficacy / cost effectiveness of smart business decision is established, Gilead can use it to make more profits But what's interesting is Gilead didn't do anything In the face of the price criticism of sovaldi from the American society, Gilead kept silent, because sovaldi has gained trust in the American hepatitis C patients But Gilead is very keen to make price adjustment when facing other markets, especially in low-income countries, such as India, which only costs 840 US dollars for a course of treatment, so as to cope with the market of middle-income countries such as China, Brazil, Turkey and so on Through the reasonable adjustment of the foreign market and the successful utilization of the cost-effectiveness of the domestic market, Gilead has perfectly solved the price problem 4 Determined decision-making and regional coordination Geely de faced the pressure of the medical industry (see above), especially in the first quarter and the second quarter after listing, it was not easy to adhere to the price of sovaldi, but Geely de did In addition, Gilead has successfully maintained the relationship between international / domestic sales, marketing and public affairs to ensure that it can overcome the domestic challenges We can't help but say Geely's luck When the domestic criticism on its price just faded, Geely's new product, harvoni, was launched again, and the price was higher Each course of treatment was about $95000, not a copy of sovaldi, harvoni The curative effect of Gilead is more reliable Therefore, it conveys a very clear message to the market: high quality and high curative effect should be sold at a higher price Gilead only prices the quality and curative effect, rather than asking all the prices How many marketing experts dream of the product mix has given Gilead good luck.