The Business Enterprise Trust Case

829 WordsOct 19, 20144 Pages
The Business Enterprise Trust Case What are the basic facts? Merck & Co. Inc. is one of the world’s largest pharmaceutical companies in the world for producers of prescription drugs. Merck had sales of 1.98 billion and net income of 307 million in 1978 and continues to steadily rise. Merck invested hundreds of millions of dollars each year in research and allocate the funds amongst various projects. On average it would take approximately 12 years and 200 million dollars to bring a new drug into the market. Many potential drugs offered little chance of financial returns, as some diseases were so rare that treatment could never be priced high enough for the company to recoup the investment. Congress sought to encourage drug companies to…show more content…
Merck & Co have found a potential cure for river blindness with the discovery of Ivermectin, which could save millions of people in third world countries. What is your decision? Justify it. Merck & Co should continue research and develop a formulated compound for river blindness. One of Merck’s philosophy is that “we try never to forget that medicine is for the people, it is not for the profits”, which makes sense ethically for Merck & Co to pursue in investing in developing a drug for river blindness. Merck’s value system is important here and if a company states that it values people over profits, it should fulfill their obligations. Merck is also the only pharmaceutical company that has found a compound with the highest chance at success in fighting river blindness disease. The advantages of developing this drug would help millions of people that are infected and help increase their reputation in society for doing the ethical thing in their current situation. What are strategies to overcome possible negative feedbacks? Some strategies to overcome possible negative feedbacks are: Try getting incentives from the government if they choose to pursue in funding treatment for river blindness Get support from other pharmaceutical company instead of developing the compound alone (financial and resources) Citation Andrew C. Wicks – Business ethics: a managerial approach – Boston – Prentice Hall -
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