page 313 – Merck & Vioxx According to The New York Times article‚ “Merck to Pay $950 Million Over Vioxx” by Duff Wilson‚ the following lawsuits have been settled by Merck: Merck has agreed to pay $950 million and has pleaded guilty to a criminal charge over the marketing and sales of the painkiller Vioxx‚ the company and the Justice Department said Tuesday. Merck agreed to pay a $321 million criminal fine and plead guilty to one misdemeanor count of illegally introducing a drug into interstate
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Questions for the Merck Case Create a decision tree for Merck. The 2 leftmost branches would identify the alternatives related to licensing Davarink (specifically license versus not to license). Next‚ if Merck decides to pursue license‚ they go into phase I which results in a success‚ or failure. Phase I success is followed by phase II where Merck has the opportunity to develop the drug to treat depression alone‚ weight loss alone‚ or both‚ or contemplate phase II failure. Finally phase
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does Merck’s value system fit into this decision (not covered in class?) Based on the pyramid of social responsibility‚ Merck is required to be profitable (base). Since the research of development will never be profitable to shareholders Merck should do develop the drug. Based on Merck’s actual value system‚ it wants to be ethical and even be a good corporate citizen. So Merck should conduct the research. Question 8 - If you were the senior executive of Merck‚ what would you do? (Open question) I
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Statement of the Problem Merck & Co.‚ Inc.‚ a leading pharmaceutical company‚ faces the threat of the patents of its most popular drugs expiring in 2002. The only way to counter the loss of sales from these drugs going off patent is to develop new drugs in order to refresh the company’s portfolio. LAB Pharmaceuticals‚ a small pharmaceutical company who specializes in the treatment of neurological disorders‚ has approached Merck with the opportunity to license Davanrik‚ a new drug with the potential to
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Evaluating a Company Vision Statement A vision statement helps to define what an organization’s purpose is. That is similar to the mission statement‚ but instead of directing the statement towards the company’s bottom line the statement is sculpted more towards the company’s values. This gives employees direction on how they are expected to behave and perform and it also gives customers an understanding of why they should work with the company (Mission Statements and Vision Statements‚ n.d.)
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Pharmaceuticals: Merck Sustaining Long-term Advantage Through Information Technology Hiroshi Amari Working Paper No. 161 Working Paper Series Center on Japanese Economy and Business Columbia Business School December 1998 Columbia-Yale Project: Use of Software to Achieve Competitive Advantage PHARMACEUTICALS: MERCK Sustaining Long-term Advantage Through Information Technology Prepared by Hiroshi Amari Research Associate‚ Yale University William V. Rapp and Hugh T. Patrick Co-principal
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TO: Dr. Roy Vagelos‚ Chairman and CEO Merck Corporation. January‚ 1991. The decision to move forward with the program to donate the new drug Mectizan on a large scale to the affected population in the Third World needs to be systematically analyzed. There are two especially important angles from which this decision needs to be considered. The first concern that needs to be taken into account is that of the stockholders and investors in this company‚ whose interests you are ultimately charged with
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Executive Summary Merck & Company has been presented with an opportunity to invest $30 million for the purchasing rights of an obesity and high cholesterol lowering drug‚ KL-798 from Kappa Labs. Based on the expected probabilities of success through each product-development phase for this new drug‚ as well as the costs involved‚ the net present value of the project is -$1.16 million and is therefore recommended that Merck passes on the investment. Sensitivity analysis also show that adjusting
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Licensing Parents Hugh Lafollette Lafollette’s thesis and argument is that we should require all parents or potential parents to procure a license prior to having children. Just as we have licensing programs for anything potentially very harmful today‚ we should also have one for being a parent. We license drivers‚ doctors‚ gun owners‚ and many other types of potentially harmful practices. So why shouldn’t we also license parents? Hugh’s argument is structured as this: P1: Any practice or
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a) Introduction in 1999 b) Withdrawal of the drug in 2004 due to heart attacks c) Merck’s knowledge of the effects of Vioxx and unethical decision to continue to sell the drug 2) Vigor Study d) Vioxx lessened stomach bleeding e) Results also showed higher risk of heart attacks f) Merck blamed naproxen for skewing the results against Vioxx 3) New England Journal of Medicine Omission g) Merck omits three heart attacks from article submission
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