Social and private value created through commercialization of Gilead Sciences’ innovative medicines for Hepatitis C and HIV: a cross-sectional analysis
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Objectives
This work assesses the value created for society and for private sector by Gilead Sciences, Inc. (Gilead) through commercialization of medicines for hepatitis C and HIV from 2012-2020. While Gilead has developed several groundbreaking medicines, the company has also been criticized for its drug pricing, patenting, and profits. This analysis posits the total value created by a medicine derives from the health benefit provided to those using these medicines.
Design
Cross-sectional analysis.
Primary and Secondary outcome measures
Health benefit from treatment for nine hepatitis C or HIV medicines (Quality-Adjusted Life Years [QALYs], $), number of individuals benefited, price paid, and Gilead Sciences’ financial report (10K).
Results
Gilead’s product sales generated 15.1 million in health benefit measured using QALYs for 23.7 million people. Expressed in monetary terms, these products created a total health value of $744.8 billion (US: $168.0; global: $576.8). This produced a residual health value, net price paid, of $544.6 billion (US: $35.9; global: $508.7) including $418.6 billion from hepatitis C medicines (US: $62.4; global: $356.2) and $125.9 billion from HIV medicines (US: -$26.6; global: $152.5). Total social value (US + global) created was $613.6 billion including residual health value ($544.6 billion), R&D ($34.2 billion), job creation ($9.7 billion), and social payments ($25.1 billion). Total private value was $193.5 billion including shareholder value ($85.7 billion) and network value (payments to commercial firms, $107.8 billion).
Conclusions
Social and private value differed between US and global sales and among diseases. This analysis highlights the scale of the value that can be created by modern medicines and the commercialization of pharmaceutical products applied to unmet medical needs. Assessing value creation at product level may guide corporate strategies and inform policies to promote both profit and public purpose.
Strengths and limitations of this study
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“Total stakeholder value” approach considers the sum of value provided to different stakeholders
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Total health value measured from unit sales and health benefit to treated individuals
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Analysis based on market data and financial reports of manufacturers applicable to business strategy and policy
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Method applicable to assessing value created by individual drugs, classes of drugs, or companies
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Health benefit measured in QALYs are subject to limitations of this metric
MeSh Headings
“Hepatitis C” [MeSh Terms], “HIV Infections” [MeSh Terms], “Quality-Adjusted Life Years” [MeSh Terms], “Private Sector” [MeSh Terms], “Public Sector” [MeSh Terms]
