Gardasil Case Study Questions
Allison Watkins, senior director of Merck’s Vaccines Division, needed to decide on the pricing of Gardasil, Merck’s newest vaccine and one of the company’s most important product launches of the year.
The Gardasil marketing team disagreed about this recommended price; some thought it was clearly too high, whereas others said it was too low.
Answer the following questions in 3 pages:
1. What is the use of Gardasil? Is Gardasil a good product? What should the price be?
2. What factors should Merck consider when setting the price?
3. Who would pay for Gardasil in the US? Is it a price-sensitive or price-insensitive drug?
4. Who is the target segment for Gardasil? Who prescribes Gardasil? Who are the competitors for Gardasil? How are vaccines reimbursed?
5. What is QALY? What is the cost per QALY for Gardasil?
6. Given the QALY calculation is the price of $120 per dose appropriate?
