Part 5/8:
Price acts as a significant competitive factor but cannot stand alone. A drug must balance efficacy and safety with its price point to effectively compete. Gilead's initial pricing strategies for Sovaldi were undercut by competitors like AbbVie, which offered lower-priced alternatives. The hosts discussed how pharmaceutical companies negotiate with pharmacy benefit managers (PBMs) to achieve preferred formulary placement, a strategy crucial for securing higher market capture against established drugs.