Sovaldi: How an $84,000 drug got its price. Gilead Sciences executives were acutely aware in 2013 that their plan to charge an exorbitantly high price for a powerful new hepatitis C drug would spark public outrage, but they pursued the profit-driven strategy anyway, according to a Senate Finance Committee investigation report released Tuesday. "Let's not fold to advocacy pressure in 2014," Kevin Young, Gilead's executive vice president for commercial operations, wrote in an internal email. ''Let's hold our position whatever competitors do or whatever the headlines." Gilead gained federal approval for its drug Sovaldi in late 2013 and ultimately settled on the price of $84,000 for a 12-week course of treatment. To the company, that price seemed to deliver the right balance: value to shareholders while also not so high that insurers would "hinder patient access to uncomfortable levels," according to internal documents. But they also got more than they bargained for: an outpouring of outrage from the public, a backlash from government and private payers, and political scrutiny. The 18-month Senate committee investigation reviewed more than 20,000 pages of company documents. "The documents show it was always Gilead's plan to max out revenue, and that accessibility and affordability were pretty much an afterthought," said Sen. Ron Wyden (D-Ore.), who co-led the investigation with Sen. Charles Grassley (R-Iowa), in a news conference. As a result Facing pent-up demand for a hepatitis C treatment, insurers quickly began to implement restrictions - - essentially, warehousing patients by putting sick people aside until they were even more sick. Medicaid programs in 27 states limited which patients could get access to Sovaldi. Private insurers did, too. the Oregon Health Authority reported that while more than 10,000 Medicaid patients were deemed good candidates for Sovaldi and its competitors in fall 2014, the estimated cost of treating half of them would more than double the entire $600 million spent on all drugs in the previous year. Instead, because treating more advanced patients would be more cost effective, the state implemented a plan to treat at the rate of 500 patients a year for the first six years. "Given the current cost of the newer treatment options and to remain fiscally responsible we will be forced to make difficult decisions regarding who does and does not get access to treatment medications upon diagnosis," Samantha McKinley, pharmacy director of the Kentucky Notes: The brand name Sovaldi among others, is a medication used for the treatment of hepatitis C. As of 2016 a 12-week course of treatment costs about US$84,000 in the United States PER PERSON Hepatitis C is an infectious disease caused by the hepatitis C virus (HCV) that primarily affects the liver, and can lead to liver failure. There is no vaccine against hepatitis C. But Sovaldi can cure 95% of people infected and is the only drug currently that can do it.

Answer the questions briefly below:

1. Why do you think the company can charge $84,000 PER PERSON for it's drug?Answer in terms of supply and demand.
2. Give 1 or 2 negative effects that are happening or you think will happen as a result of this market price.
3. Do you think the Government should step in?Explain your answer.