Gardasil Case Analysis

495 words, 2 pages

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1. Gardasil is a definitely a great product. In clinical trials it prevented 100 percent of cancers related to HPV types 16 and 18 in women not previously exposed to the virus. It also prevented 99 percent of genital warts caused by HPV 6 and 11. With HPV types 16 and 18 making up 70 percent of cervical cancer cases and types 6 and 11 making up 90 percent of genital wart cases, I would say Gardasil is a great product. It prevents most cervical cancer and most genital wart cases. Additionally, it is known to have very few side effects. Its brilliance is additionally supported by the fact that so many individuals are affected by HPV each year. To have a drug that can change the lives of so many individuals definitely makes it a great product.

2. When it comes to pricing Gardasil, Merck definitely has a few things to consider. The 15 years and $1.2billion spent are crucial factors as Merck would like to realize their investment and be compensated for the time making the vaccine. Additionally, they would probably also want to take into consideration the many other drugs that were in R&D at the time that failed. Pharmaceutical companies often have many investments into many different potential products that may or may not go well, and these costs should be noted in pricing a new flagship drug. The variable cost of production is also important because it will determine the minimum price point of the product and will help Merck insure they make a profit. The benefits should also be priced in, as this drug is extremely effective. Because it effects so many people so positively, Merck can either choose to take a monopoly standpoint and price high or price lower for better PR. Pricing low may also help them with all of the negative publicity from the Vioxx law suits. There really is no competition at the moment, especially because they have a patent until 2017. This will factor into their ability to price higher to make as much money as possible before a generi View More »

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