Transcript Gardasil 2008-09 - Arthur W. Page Society

Gardasil 2008-09
Arthur W. Page Society
Agenda
 Why pick Gardasil?
 Background
 Marketing & Communication
 Advertising campaign
 Present Issue Status
 Financial Impact
 Page Principles
Why pick Gardasil?
 Great example of
how important
identifying potential
and emerging issues
are in the strategic
planning process
 Great example of
importance of
environmental
scanning
 Wonderful
opportunity to apply
Page Principles to a
“real world” crisis
 Great example of the
importance of the
transparent and
authentic
communication
Background
 Merck & Co.
launched Gardasil in
June 2006
 In 2007 more than
8 million girls ages 917 were vaccinated
 Clinically tested on
11,813 people
 More than 10,300
adverse effects have
been reported since
Gardasil was
approved.
 27 deaths have been
reported
Background (cont)
 In 2007 Merck & Co.
grossed just over $18
million in profits
 Texas Governor Rick
Perry passed
legislation in 2008
requiring girls entering
6th grade to receive
the Gardasil vaccine.
 In 2008 Gardasil was
added to the list of
vaccines immigrants
must receive
 In 2004 Merck & Co.
announced its
withdrawal of VIOXX.
Marketing &
Communication
Nov. 1, 2006: Merck & Co.’s Cervical Cancer Vaccine Gardasil added to
Centers for Disease Control Vaccines for children.
Nov. 13, 2006: Merck & Co. launches national advertising campaign for
Gardasil.
Spring 2008: Merck & Co. partners with Barnes & Noble to advertise Gardasil.
June 25, 2008: Merck & Co., Inc. receives complete response letter from the
Food and Drug Administration [FDA] for the use of Gardasil in women 27-45.
July 8, 2008: Merck & Co. responds to questions about adverse events
reported following Gardasil vaccination.
Sept. 12, 2008: FDA Approves Merck & Co.’s Gardasil to protect against two
additional cancers.
Nov. 13, 2008: Gardasil demonstrated efficacy in preventing HPV-related
disease in Males Phase III study.
Advertising Campaign
Click on the ads to view Gardasil commercials
Marketing &
Communication (cont)
 Gardasil’s initial effort
was the “One Less”
campaign
 Targeted women
ages 9-26
 The campaigns
showcased women
outside of the “little
girl” stereotype
 On July , 2008 Merck
& Co. issued a press
release in response to
Gardasil’s adverse
effects
 Merck denied all
responsibility
 After the press
release the second
round of commercials
aired
Present Issue Status
 More than 10,300
adverse reports have
been filed against the
vaccine
 The FDC and CDC are
closely monitoring the
effects of the vaccine
 If the recipients
experience adverse
effects they can report
to the FDA MedWatch
 Approximately one
month after the FDA
approved the
Gardasil vaccine, the
first adverse effect
was reported.
 Reaction reports
have come from 21
states
Present Issue Status
(cont)
 Reactions were
reported from ages
11-27
 94 percent were
considered nonserious
 According to the
CDC, experts have
found no medical
pattern to the reports
of serious effects
 After the reports
Merck changed the
label on Gardasil to
include more side
effects
 The CDC and FDA
have declared
Gardasil safe for use
Opponents
 National Vaccine Information Center [NVIC]
 Virginia House of Delegates'’ John Welch III
 Senator Delores Kelley of Baltimore
 Henry J. Kaiser Family Foundation
 www.Gardasil-Talk.com
 Blogs
Supporters
 Center for Disease Control [CDC]
 The Food and Drug Administration [FDA]
 Texas Governor Rick Perry
 World Health Organization
 American Social Health Association
 Planned Parenthood
Financial Impact
 Gardasil costs $ 360
for three doses
 In 2008 Merck & Co.
ranked 4th in the
pharmaceutical
industry
 VIOXX caused Merck
& Co. to slip in the
ratings
 Vaccines served as a
critical function in
creating the Merck &
Co. turnaround
 Gardasil’s growth
slowed during 2008
due to growing
concerns of the
product’s side effects
Financial Impact
(cont)
Page Principle: Tell the Truth
 Merck & Co. denied
any ownership to the
claims made against
Gardasil
 By waiting so long to
speak out Merck &
Co. did not get the
opportunity to state
that it was doing
follow up testing
 Merck & Co. evaded
its social responsibility
to the truth
 By creating clear
communication with
the public Merck &
Co. will be able to
minimize the
negative effects
Page Principle: Prove it with action
 Merck & Co. held a
press release on July
8, 2008 to comment
on the reports
regarding Gardasil
 Merck & Co. should
also continue testing
until it has found the
cause of the
negative effects
 Merck & Co. should
not accept fault for
the negative effects
until it is certain of the
cause
 By creating clear
communication with
the public Merck &
Co. will be able to
minimize the
negative effects
Page Principle: Listen to the customer
 Merck & Co.
neglected public
concern through lack
of communication
 Merck & Co. needed
to acknowledge that
it was looking into the
problem at hand
 By periodically
releasing information
to the public Merck &
Co. will build a
relationship with its
customers
Page Principle: Manage for tomorrow
 Merck & Co. needs to
have a clear
communication plan
for the future
 The company needs
to be aware of grass
roots efforts such as
blogs
 More than 750 blogs
mentioned Gardasil
as of Dec. 17, 2008
Page Principle: Conduct public relations
as if the whole company depends on it
 Merck & Co. has not
operated as if the
company depends
on it
 Continuing to push
legislation for making
Gardasil required
could be put on hold
until it address the
concerns of its
consumers
 The company should
have learned from its
mistakes with VIOXX
 Merck & Co. should
have waited to
announce Gardasil
for men until after the
tests come back
Page Principle: Realize a company’s true
character is expressed by its people
 Merck & Co.'s Web site
states it prides itself on
the quality of its
workers, ethical
standards and values,
the company’s
mission, compensation
and benefits as well as
the work environment.
of its consumers
 The company needs
to maintain a strong
relationship with
public health
companies
 In addition, Merck &
Co. needs to
maintain a positive
relationship with its
customers
Page Principle: Remain calm, patient and
good-humored
 Merck & Co.
immediately denied
that the problems
with Gardsil were its
fault
 This made the
company come off
as defensive which
goes against this
Page Principle
 Merck & Co. should
commit to further
research