In the HIV drug market, Gilead leads the way. Its products Truvada has sales of
ID: 1169306 • Letter: I
Question
In the HIV drug market, Gilead leads the way. Its products Truvada has sales of $3.1 billion. Stribild ($205 million), Complera ($800 million), Viread ($958 million), and Antripla ($3.6 billion). Note that 2 of these drugs are joint ventures. Complera is a joint venture with Johnson & Johnson. Johnson & Johnson’s other HIV products are Prezista ($1.7 billion) and Intelence ($0.3 billion). The other Gilead joint venture is Antripla where proceeds are shared with Bristol-Myers. The other Bristol-Myers HIV drugs are Sustiva ($2.4 billion) and Reyatac ($2.3 billion) Note: for joint ventures assume revenue is divided 50-50. Solve for the HH Index in the HIV drug industry. Show your solution.
Explanation / Answer
Total Market for HIV drugs (adding revenues for all products) = $15.363 billion
Evalulating market shares for companies -
Gilead (in billion $) - 3.1 + 0.205 + 0.4 + 0.958 + 1.8 = $6.463 billion
J&J (in billion $) - 1.7 + 0.3 + 0.4 = $2.4 billion
Bristol Meyers (in billion $) - 1.8 + 2.4 + 2.3 = $6.5 billion
Market shares calculation -
Gilead - 6.463/15.363 = 0.4206;
J&J - 2.4/15.363 = 0.1562;
Bristol Meyers - 6.5/15.363 = 0.4230;
HH Index = (0.4206)^2 + (0.1562)^2 + (0.4230)^2 = 0.3801