Gardasil 2008-09Arthur 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
Clinically tested on 11,813 people
27 deaths have been reported
In 2007 more than 8 million girls ages 9-17 were vaccinated
More than 10,300 adverse effects have been reported since Gardasil was approved.
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 non-serious
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 not accept fault for the negative effects until it is certain of the cause
Merck & Co. should also continue testing until it has found the cause of the negative effects
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