Merck & Co.‚ Inc (A) (The summary is based on the article in Vol. I and does not include the extra readings given by the professor) This case is a classic example of enterprises trying to balance their business of increasing profits and expected social responsibilities. This dilemma is further accentuated when the company happens to be a pharma company whose decisions directly affect people’s lives. The Dilemma: A possible drug for River Blindness‚ a disease which affects almost 85 million
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ADVISING IN MERGERS‚ ACQUISITIONS‚ AND FINANCIAL RESTRUCTURING ADVISING Investment banks are active in mergers and acquisitions (M&A)‚ leveraged buyouts (LBOs)‚ restructuring and recapitalization of companies‚ and reorganization of bankrupt and troubled companies. They do so in one or more of the following ways: (1) identifying candidates for a merger or acquisition‚ M&A candidates; (2) advising the board of directors of acquiring companies or target companies regarding price and non-price terms
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a lot of Mercks’ products patents will be expiring in the next few years Gilmartin put a big emphasis on investing into the companies research and development of new products. Gilmartin wanted this company to really focus on coming out with new products because their bottom line was going to take a hit in the next few years once the patent on their big money products runs out. Gilmartin found it an ideal time to invest in R&D while many of the other companies were investing in mergers which he
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Merck and Co. and river blindness MANUEL VELASQUEZ‚ Business Ethics. Concepts and cases 4th edt.‚ Prentice Hall‚ Upper Saddle River‚ New Jersey‚ 1998 River blindness is an agonizing disease that affects some 18 million impoverished people living in remote villages along the banks of rivers in tropical regions of Africa and Latin America. The disease is caused by a tiny parasitic worm that is passed from person to person by the bite of the black fly which breeds in river waters. The tiny worms
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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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information about its future prospects. management is reluctant to provide financial information that is not required by law. agents incur costs in trying to obtain information. the financial manager should attempt to manage sensitive information about the firm. 4. In the long run‚ a successful acquisition is one that: enables the acquirer to make an all-equity purchase‚ thereby avoiding additional financial leverage. enables the acquirer to diversify its asset base. increases
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I. OBJECTIVES To select the best managers for the available positions To finalize the members on the management levels of the merger To determine on how the co-CEOs will agree with the process of selecting the best managers for the merger II. PROBLEM STATEMENT According to the story‚ the merger had left the Arlington with two managers for almost every available position at upper and middle management levels. The co-CEOs had already selected the executives on board prior to the merging
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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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Table of Contents Section 1…………………………………………………………………………………3 Section 2…………………………………………………………………………………4 Section 3…………………………………………………………………………………6 Section 4…………………………………………………………………………………9 Section 1: Introduction and Situational Analysis Onchocerciasis‚ known as river blindness‚ is caused by parasitic worms that live in the small black flies that breed in and about fast-moving rivers in developing countries in the Middle East‚ Africa‚ and Latin America. The disease‚ if untreated causes
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Case #1: Merck and River Blindness MGT 597: Leadership Ethics Dr. Brandon Randolph-Seng Javiaur Harmon: Winter Mini 2014 - 2015 1. Think about the definition stakeholders—any parties with a stake in the organization’s actions or performance. Who are the stakeholders in this situation? How many can you list? On what basis would you rank them in importance? The stakeholders in this situation were the employees (research scientists doing the R&D)‚ Merck‚ and the target audience which
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