Merck and the Recall of Vioxx Florence N. Wandera MGT 600 – Corporate Responsibility & Bus Law Merck and the Recall of Vioxx Case Summary Merck & Co. Inc. is a global research-driven pharmaceutical company that develops, manufactures and markets a broad range of human health products. One such product is Vioxx, developed in 1994 and approved on May 21, 1999 by the United States Food and Drug Administration (FDA) for the treatment of pain, inflammation, and stiffness caused by arthritis. The drug was also later approved for use in the treatment of rheumatoid arthritis in both children and adults. The product was promoted aggressively by Merck and had emerged as one of the best selling drugs for the company within a year of …show more content…
Another very disturbing factor was the company’s “Dodge Ball Vioxx” training document. According to the case, the results of the Vioxx-naproxen study alerted doctors and patients, and in order to help sales personnel deal with questions that both doctors and patients raised, the company developed a sales aid called “Dodge Ball Vioxx,” basically a document intended to help sales representatives get away with questions regarding concerns that customers and doctors had about the drug. Who does that? I was seriously shocked that the company would go to such extremes to avoid taking responsibility, especially when thousands of people’s lives depended on it. Clearly Merck was determined to fight anyone who was skeptical about Vioxx’s safety. This was shown through its actions to shut down academic researchers who tried questioning the drug’s safety by withdrawing its funding to these institutions or lectures that it sponsored at the various schools. Merck even ignored the Kaiser Permanente study, which was sponsored by the FDA. The results of the study showed that patients taking the highest recommended dosage of Vioxx had nearly 2.7 times the risk of heart attack and sudden cardiac death as patients taking Celebrex. Again Merck dismissed these FDA conclusions about Vioxx. All this
The pharmaceutical industry is one of the most powerful and greedy industries in our country, with a goal to make as large a profit as possible, at the expense of the sick.
The twenty-first century has seen pharmaceutical companies grow in unprecedented size and strength. Due to the unprecedented growth the larger pharmaceutical companies have gained leverage and power in the prescription drug industry, but they lack innovation to market and they seek ways to help the business continue to increase its profits. The pharmaceutical industry was once ethically sound and was a valuable player in the development of human health. However, overtime with the lack of innovation pharmaceutical companies are becoming an unethical market that exploits patients, doctors and anyone else it can to increase its profitability. With eyes only on profitability this can create a hazard for patients because there
A majority of pharmaceutical companies thought that penicillin was to be a cure for any infection. At first no one expected that bacteria would mutate and become stronger. Initially pharmaceutical companies stopped doing research for new antibiotics and concentrated on other areas. As the result,
When J&J realized that their Tylenol capsules caused the deaths of four Chicagoans, they immediately initiated a recall of all Tylenol products, and spread the news by any means possible. Cars with sirens and loudspeakers drove through the city and suburbs of Chicago, urging residents to throw away any Tylenol capsules they might have. Schools were contacted, and they instructed students to bring all Tylenol products to the school nurse. News flashes were initiated to warn people of the Tylenol danger as well, and all stores were instructed to remove Tylenol products from their shelves. Removing the products was a gutsy move, not only because it was dangerous to the company by recalling so much products, but there was also a fear that the killer
Health authorities estimate that 1% of Candor’s population would be infected by the viral outbreak in March of 2012. Gentura was under pressure by the new government to subsidize the price of ViroBlax. The subsidization of ViroBlax would be a breech of contract with CadMex. Furthermore, Gentura is the only licensed manufacture of ViroBlax in Candore. Acting as the Vice President in charge of International Business Development, I directed our legal counsel to take no legal action, but claim compensation from Gentura. I based my decision from the fact that legal actions against Gentura would weaken the partnership between CadMex and Gentura, and could take a great deal of time to arbitrate with nonbinding results. The alternative of asking Gentura for shared marketing rights for another drug was considered, however through conversations with Gentura’s CEO Vail Saman, and our legal counsel of Kera Sawyer I decided that this option was not in our best interest to peruse.
The Pharmaceutical industry has been in the spotlight for decades due to the fact that they have a reputation for being unethical in its marketing strategies. In The Washington Post Shannon Brownlee (2008) states, “We try never to forget that medicine is for the people. It is not for the profits. The profits follow.” This honorable statement is completely lost in today’s world of pharmaceutical marketing tactics. These tactics are often deceptive and biased. Big Pharma consistently forgets their moral purpose and focuses primarily on the almighty dollar. Big Pharma is working on restoring their reputation by reforming their ethical code of conduct.
Last year, in September 2004, Merck withdrawed Vioxx, off the market. Studies of Vioxx showed that it doubled the risk of a heart attack or stroke for patients who have used it more than 18 months. After Merck, withdrawed Vioxx from the market, the FDA, issued a public health advisory for the users of Vioxx. Therefore, Vioxx was on the market for five years without
While some have identified Merck as a visionary company dedicated to a "core values and a sense of purpose beyond just making money" (Collins & Porras, 2002, p. 48), others point out corporate misdeeds perpetrated by Merck (e.g., its role in establishing a dubious medical journal that republished articles favorable to Merck products) as contradictory
Another issue is too much power is given to scientists in decision-making of candidate drugs. Also there were inadequacies and lack of communication between marketing and research. Merck’s marketing and research needed to realize that the making of the drug is not only the most important part in increasing sales, but it also included a strong advertising campaign that will satisfy the needs of the customers.
Merck is a drug manufacture giant who brings an annual revenue of nearly fifty billion. Prior the Vioxx recall Merck was a highly valued company when it came to its ethical standard. It had consistently toped list for companies to work for (Lawrence & Weber, 2014). In addition to this they were well recognized as a socially responsible company who placed an importance on testing to provide the best quality pharmaceuticals. The Vioxx recall caused a huge blow for the company resulting in lawsuits and drop in company value.
Turnaround Strategy : Merck’s research and development has not always resulted in products that provide value to consumers. Vioxx was taken off the market in 2004 when people became sick and died after taking the drug. The company’s reputation suffered after allegations that Merck asked doctors to sign Merck-written research studies for Vioxx. Merck disputes the allegation, but more than 9,200 lawsuits were filed against the company. Vioxx had generated $2.5 billion in annual sales.
Merck was one of the largest pharmaceutical companies in the world. • Merck was about to lose patent protection of two of its best selling drugs, which had been a significant part of their $2 billion annual sales. • Merck began putting millions of dollars into research (up to $1 billion) and within three years, Merck was able to discover four powerful medications. • Profits weren’t all that Merck cared about; Merck’s founder believed that “medicine is for people. It is not for the profits.” • He also believed that following the “medicine is for people” philosophy would lead to profits and had yet to fail.• River Blindness is caused by parasitic worms, which can be found in
The pharmaceutical industry confronts several dilemmas every year. Most of these dilemmas revolve around money or whether or not to sacrifice now for a bigger payoff in the end concerning money and/or lives. Pharmaceutical companies tend to use shortcuts that create ethical problems. Drug companies have spent millions/billions of dollars in research, and they obviously want to see
Merck was established in 1891 to improve human and animal health through the development of innovative products. Merck currently has two reportable segments, the Pharmaceutical Segment and the Vaccines and Infectious Diseases Segment. Merck sells products through several channels including wholesalers, retailers, hospitals, clinics, government and managed health services providers. In the 1980’s the Merck was very successful in producing 10 major new drugs and had a very healthy pipeline. In later years, Merck has entered into joint ventures with many other pharmaceutical companies in order to expand its pipeline. In the last several years Merck has
Simply put by Lindstrom, the company totally blew the CDC's statement "out of all proportion just to heighten the sense of danger". This example is really captivating, because it sheds light on a situation that most people would never question. It really shows how big corporations are using fear to provoke emotions, which lead us to buying thing in order to once again feel safe.