Price Discounting in Multi-echelon Distribution Systems

R.  Jaikumar; V. K. Rangan

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Article | Engineering Costs and Production Economics | May 1990

Price Discounting in Multi-echelon Distribution Systems

by R. Jaikumar and V. K. Rangan

Keywords: Price; System;

Format: Print

9 pages

Find at Harvard

Citation:

Jaikumar, R., and V. K. Rangan. "Price Discounting in Multi-echelon Distribution Systems." Engineering Costs and Production Economics 19, nos. 1-3 (May 1990): 341–349.

About the Author

V. Kasturi Rangan

Malcolm P. McNair Professor of Marketing

Marketing

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Gilead: Hepatitis C Access Strategy (A) (Abridged)

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Gilead had come up with an innovative drug for Hepatitis C, which affected 180 million people worldwide. The drug was priced at $1,000 a pill for the US market. Gilead had to decide how to price and market the pill in developing countries that bore the brunt of the disease. The company had earned accolades for its work in HIV/AIDS, where its innovative medicines now accounted for 60% of all patients on Anti-Retroviral (ARV) medicines. Much of this was accomplished through generic licensing, which brought a $10,000/year treatment regimen down to $100! Should the company replicate that strategy for Hepatitis C? If so, how would its US Healthcare customers, who were paying $84,000 per patient, react? On the other hand, Gilead had to balance the interests of its shareholders, who paid $11 billion for an acquisition that led to the new Hepatitis C drug.

Keywords: healthcare; Pharmaceuticals; pricing; Access to care;

Citation:
Rangan, V. Kasturi, Vikram Rangan, and David E. Bloom. "Gilead: Hepatitis C Access Strategy (A) (Abridged)." Harvard Business School Case 519-077, March 2019. (Revised November 2019.) View Details

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Price Discounting in Multi-echelon Distribution Systems

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