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Gilead's strategy appears to adapt to changing market dynamics. Out of an estimated 150 million individuals globally infected with hepatitis C, approximately 3 million reside within the United States. Gilead is following a natural market evolution process, transitioning from treating the sickest patients to reaching broader populations.
Ultimately, to maintain revenue levels amid price reductions, Gilead has to treat a larger number of patients. Previous pricing for treatments has dropped significantly from around $70,000 to $40,000-50,000 due to competitive pressures. The potential market in China, where an estimated 10-20 million people are known to have hepatitis C, represents a massive opportunity yet to be realized, with Gilead's products expected to enter the market around 2017.