...Executive Summary Statement of the Problem LAB Pharmaceuticals does not have enough capital to finance the testing of Davanrik, an antidepressant drugs that has potential side effects relating to obesity. LAB approaches Merck & Co., Inc. (Merck) and asks the company to license Davanrik, as well as funding the clinical testing. Merck must decide whether or not to bid to license Davanrik and if so, at what price. Discussion Merck is facing patent expiration problem because most of its popular drugs are going to expire by 2002. Patent expiration will lead to a substantial loss of sales. Therefore, Merck must develop new compounds quickly to refresh its portfolio and counter the loss of sales. Licensing Davanrik with LAB would help Merck to save from two to ten years of the discovery stage because Davanrik has already passed this stage and is in the pre-clinical development stage now. The income statement shows that Merck has spent almost two billions dollars annually for the last three years on research and development of new compounds; in particular, Merck spent $2,068 million in 1999. By licensing Davanrik, Merck would be able to save this amount of money and a lot of time to replace the patent. Then, it will be able to re-enter the market and gain revenue quickly. A decision tree analysis was constructed to help valuing the drug licensing decision. The maximum bid price that Merck should offer LAB should be lower than or equal to the total expected value of the...
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...February 3, 2015 Mr. Kender, Merck and Company has been presented with a very interesting opportunity from LAB Pharmaceuticals. After having analyzed the current opportunity that Merck and Company is being presented with we have come up with the following recommendations on how best for you and your company to proceed with this proposal to purchase LAB Pharmaceuticals new drug, Davanrik. We feel that purchasing the rights to Davanrik is a great opportunity for Merck and Company to expand its product portfolio, customer base and future revenues. That being said, there are risks associated with taking on the costly and lengthy FDA approval processes that goes along with it. After having performed our analysis, based in part by the use of the attached decision tree, we have concluded that the maximum that Merck and Company should be willing to offer LAB Pharmaceuticals for the rights to Davanrik is $13.68 million. Also, in order to be more confident in the financial outlook for this plan we also elected to perform a sensitivity analysis. The analysis was run based on a worse case scenario and assumed an increase of launch costs from $100 million to $225 million for the weight loss compound in the third phase of the launch. If Merck and Company was to experience these added costs we would expect to see value of $10.76 million. Within the attached report you will find our detailed analysis, which has led us to the above conclusion. The report also outlines the...
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...generality. For the managers to make accurate forecast of future profitability in managing companies, quantified decision making process is needed. Here we are dealing about whether Merck should give financial support to the R&D project of Davanrik offered by LAB, and about the process of valuation and the final decision. First we are to make brief of LAB’s business proposal and practice detailed valuation functions to decide if the proposal is profitable or not. And finally we will make a decision based on the valuation process in perspective of Rich Kender, Vice President of Financial Evaluation & Analysis of Merck. Brief introduction of Merck and its agenda regarding Davanrik project As a world-class pharmaceutical company concentrated on R&Ds, Merck is performing various researches and developments upon medical supplies for human and animals. Merck is providing Pharmaceutical Benefit Management (i.e. PBM) through a company called Merck-Medco Managed Care. Apparently it is a giant pharmaceutical company with more than 15 blockbuster medical supplies, revenue of $3270 million and net profit of $590 million, ever since 1995. One constraint of Merck is that most of its profit is over-concentrated on the major top 4 items, and in order to diversification of profits Merck is facing a pressure to launch a new business item or take another...
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...239 #51-60 (odd) | 3 | Unit Conversions | Moles! Moles! Moles! LabPink and yellow cardsPg 242 # 61-70Pg 243 # 1-16 and Chapter Review (select your own) | 4 | Multistep conversionsQUIZ | * Mole Recipies * Mole Road Map index card * Have them pick what they want to bake and they get half a period to work on conversions and then the weekend to bake. Bring in milk for us to enjoy with our cookies. | 5 | Percentage Composition | Read pgs 258-261Chewing Gum LabDry Lab pg 260Pg 260 # 1-10 (even)Pg. 262 # 1-6 | 6 | Empirical Formula | Nut boltide labRead pgs 268-270Pg 270 # 7, 9, 12Read pgs 271-276Do # 31-40 (even) pg 275 | 7 | Combustion Analysis type problem and Hydrate Lab Prep | Pg 277 # 16, 17, 18 (Pre-lab) + data table for 3 hydrates | 8 | Mole Airlines flight 1023 | Work in groups of 4 and hand in at the end of the period with full calculations and ID chart filled outPg 225 # 41-47 (odd)Pg 278 # 51-60 (even)Pg 279 # 1-16 (all) | 9 | Problem Set on Empirical Formula and % Composition | Work in pairs and set up a solutions gallery with chart paper solutions in review for their quizQUIZ | 10 | Stoichiometry | Bicycle Activity – IntroRead pgs 296-299Pg 298 # 1-10 (odd)Pg 299 # 1-6 (even)Pg 300 # 11-20 (odd) | 11 | Chalk Lab | Activtiy 7.1 pg 301Mole MethodRead pgs 301-304 Pg 304 #21-30 (even)Pg 305 # 1, 4, 6, 7,10, 11 | 12 | Limiting Reagent Problems | Socratic – full step by step with a problemRead pgs 306-308Pg 309Do # # 31-39 (even) (practice)Do # 8, 10...
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...Executive Summary The following analysis of Merck and Company was to thoroughly examine a drug licensing opportunity with LAB Pharmaceuticals, a small pharmaceutical firm. This firm has offered to allow Merck and Company rights to further development of the drug called Davanrik. The analysis includes calculations of probability and decision trees using the Microsoft program Excel. It is assumed that given probabilities are correct, however sensitivity analyses were conducted to show the overall effect of cost and probability changes. Risk was also considered as a major factor in this analysis. It has been determined that Merck & Company should accept the offer from LAB Pharmaceuticals because of the predicted revenue. The relative risk involved with this project is high; however, it has been determined to be part of the nature of the pharmaceutical industry and previous drug development endeavors. Background The nature of the pharmaceutical industry includes a variety of factors. Three of these factors will be described. First, development of a drug can take several decades and therefore pharmaceutical companies incur large research and development expenses with no revenue in return. Because of this, larger pharmaceutical companies that have sufficient capital have typically dominated the drug market. Merck & Co., Inc, a global research-driven pharmaceutical company, has been able to achieve substantial returns to capital by discovering, developing, manufacturing and marketing...
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...ZHENG v. LIBERTY APPAREL COMPANY INC 88 91 998 103 No. 02-7826. Argued: Jan. 16, 2003. -- December 30, 2003 Before: WINTER, LEVAL, and CABRANES, Circuit Judges. James Reif (Margaret A. Malloy, of counsel), Gladstein, Reif & Meginniss, LLP, New York, NY, for Plaintiffs-Appellants.Michael H. Klein, Kestenbaum, Dannenberg & Klein, LLP, New York, NY, for Defendants-Appellees.Jennifer S. Brand, Assistant Attorney General (M. Patricia Smith, Assistant Attorney General, Daniel J. Chepaitis, Assistant Solicitor General, of counsel, Eliot Spitzer, Attorney General of the State of New York, on the brief), Office of the Attorney General of the State of New York, New York, NY, for amicus curiae Eliot Spitzer, Attorney General of the State of New York.Catherine K. Ruckelshaus (Laurence E. Norton, II, Amy Sugimori, of counsel), National Employment Law Project, Inc., New York, NY, for amici curiae Asian-American Legal Defense and Education Fund and National Employment Lawyers' Association. This case asks us to decide whether garment manufacturers who hired contractors to stitch and finish pieces of clothing were “joint employers” within the meaning of the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. § 201 et seq., and New York law. Plaintiffs, garment workers in New York City who were directly employed by the contractors, claim that the manufacturers were their joint employers because they worked predominantly on the manufacturers' garments, they performed a line-job...
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...power? | | | Student Answer: | | HC | | | | HC-GPL | | | | CV | | | | CV-GPL | | | | Both A and C | | | | B and D | | | | A and B | | Instructor Explanation: | Chapter 10 | | | | Points Received: | 5 of 5 | | Comments: | | | | 3. | Question : | (TCO 2) The _____ is a way for organizations to improve the collection and communication of financial and operating information. | | | Student Answer: | | Performance dashboard | | | | Financial bottom-line | | | | Holistic perspective | | | | Performance perspective | | Instructor Explanation: | Chapter 11 | | | | Points Received: | 5 of 5 | | Comments: | | | | 4. | Question : | (TCO 2) What should be a firm's primary long-term financial objective? | | | Student Answer: | | Profit growth | | | | Debt growth | | | | Asset growth | | | | Equity growth | | Instructor Explanation: | Chapter 11 | | | | Points Received: | 5 of 5 | | Comments: | | | | 5. | Question : | (TCO 2) What are the major reasons for accrual accounting? | | | Student Answer: | | Accrual accounting is a...
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...Mechanical Eng. Lab No :1 UNIVERSITI KUALA LUMPUR MALAYSIA FRANCE INSTITUTE TITLE: SIMPLE MOMENT EXPERIMENT 1. Objectives The objectives of the experiments are to demonstrate the equilibrium of moments. 2. Abstract This report presents the demonstration of the equilibrium of moments using MM 102 simple moments apparatus ESSOM Co. Limited. This equipment provides a simple easy to understand experiment on the equilibrium of moments. Several loads can be put on the beam at various positions. The student has to determine the moment necessary to overcome this rotation and keep the beam level. This experiment is done by putting a specific weight on the load hanger 1 and 3. Weight on load hanger 4 is put and moved until the beam is in equilibrium. The steps are repeated and all the results are jotted down into a table. Based on the results, equilibrium of the beam is influenced by the weight and distance on each hanger. Figure 1: MM 102 ESSOM Co. Limited 3. Introduction The purpose of the experiment was to determine the equilibrium of moments. A lever is a simple machine consisting of a beam pivoted at a fixed hinge or fulcrum. The lever arm of a force applied to a solid is the distance from the fulcrum to the line of action of this force. Equilibrium is reached when the algebraic sum of the moments of forces in relation to the fulcrum is zero. The Unit for studying Equilibrium of Moments on a two arm lever provides a simple way of...
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...BIO Family Clinic (BUN: under 40 & Creatine: 0.5-1.2) EBIO Login PW: ebio123 11468 N. Frontage Rd. Yuma, AZ 85367 TEL: (928)342-6500 FAX: (928)342-3868 Office: 8:30am-5pm (closed 12-1) LAB: 7am-4pm Insurances that our lab does not take send to: Sonora Quest(by the hospital 782-1684 or Plaza Lab 317-0920 Dr. Muzyka, M.D Dr. Susavage, DO Dr. LM (Hanif) Dr. Fazil, M.D (Nephrologist, Kidney and Blood Pressure) Dr. Silao, M.D (next door) Sally (M. L M.D.) Dexa(Bone density) Wednesdays-Print her schedule Dr. Babiker M.D (his own office) (928)345-0920 BIO Specialty Pain Clinic Jackie: Office Manager-fax over reports TEL: (928)247-9616 CELL: (928)261-7976 FAX: (928)276-4593 Dr. Shams (Allergist) Dr. Harrington (Neurologist, nerve) Dr. Saleem Chughtai (Pain Specialist) Dr. Shams (Allergist) Nadia(Dr. Muzyka, L M.D)(Mon-Thurs) • Be done with her schedule by 9:45am o Monday, Tuesday- Nadia’s schedule (check for future apts. & what was ordered in previous visit) ), todays horizontals, previous cts, previous MRI, excel sheet, sticky note with previous day’s count ups and todays reminders. o Wednesday- Nadia’s scheduled (check for future apts. & what was ordered in previous visit) ), sallys schedule, todays horizontals, previous cts, previous MRI , excel sheet, sticky note with previous day’s count ups and todays reminders. o Thursday- Nadia’s schddule (check for future apts. & what was ordered in previous visit) ), todays horizontals...
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...101 (Sec-J) ART 102 (Sec-N) KK #506 ART 102 (Sec-S) MAH #507 ART 102 (Sec-O) SAC #508 ART 102 (Sec-U) NKD #402 CSC 103 (Sec-H) HR #606 ENG 101 (Sec-B) SR #607 ENG 101 (Sec-D) ATMSA #405 ENG 101 (Sec-H) NF #603 ENG 101 (Sec-G) SR #607 ENG 101 (Sec-C) LAM#604 ENG 101 (Sec-D) ENG 101 (Sec-F) JU 10:40-1 ll:45l:40am 12:45pm CSC 103 CSC 103 (Sec-A) SM (Sec-I) #323 MSS#402 CSC 103 (Sec-J) MMR #520 CSC 103 (Sec-K) PB #521 CSC 103 (Sec-U) PPP #601 CSC 103 (Sec-T) DAS #602 2:00-3: 00pm CSC 103 (Sec-I) MSS #402 CSC 103 (Sec-J) MMR #520 CSC 103 (Sec-K) PB #521 CSC 103 (Sec-U) PPP #601 CSC 103 (Sec-T) DAS #602 ART 102 (Sec-H) MMI #403 ENG 101 (Sec-H) NF #603 ENG 101 (Sec-C) LAM #604 3:05-4: 05 pm ART 102 (Sec-A) NKD #403 ART 102 (Sec-B) KK #401 ART 102 (Sec-C) MMI #507 ART 102 (Sec-T) SAC #508 ENG 101 (Sec-N) SI #621 4:105:10pm CSC 103 (Sec-L) MAH #502 CSC 103 (Sec-M) MAB#503 CSC 103 (Sec-N) MSS #504 CSC 103 (Sec-O) DMAH #505 CSC 103 (Sec-P) SR #506 CSC 103 (Sec-Q) MSA#507 CSC 103 (Sec-R) HR #508 CSC 103 (Sec-S) PPP #520 MAT 107 (Sec-T) ZH #521 MAT 107 (Sec-A) 5:15-6:15pm CSC 103 (Sec-L) MAH #502 CSC 103 (Sec-M) MAB #503 CSC 103 (Sec-N) MSS #504 CSC 103 (Sec-O) DMAH #505 CSC 103 (Sec-P) SR #506 CSC 103 (Sec-Q) MSA #507 CSC 103 (Sec-R) HR #508 CSC 103 (Sec-S) PPP #520 MAT...
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...police officer. ALWAYS GIVE EXAMPLES! Milligram 'Behavioural study of obedience to malevolent authority' (milligram 1963) 'From 1939 to 1945 millions of innocent persons were slaughtered on command' (Milligram 1963). He wanted to know what caused such behaviour and if it was always in the person or is it the situation they are in? Aim:Millgram wanted to see if volunteer participants would obey orders to give electric shocks to someone they thought was just another participant. 'how far would they go?' Procedure: sample – recruited via newspaper advertisement (40 volunteers) Expenses and a fee paid ($4) Participants informed study was about memory and learning and effects of punishment on learning. Fixed lottery (naïve participant always going to be leader). 3 people taking participant experimenter – grey lab coat to show authority...
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...9-201-023 REV: MARCH 25, 2003 RICHARD S. RUBACK Merck & Company: Evaluating a Drug Licensing Opportunity Rich Kender, Vice President of Financial Evaluation & Analysis at Merck, was working with his team to decide whether his company should license Davanrik, a new drug with the potential to treat both depression and obesity. The small pharmaceutical concern that developed the drug, LAB Pharmaceuticals, lacked the resources to complete the lengthy approval process, manufacture the compound, and market the drug. LAB had approached Merck with an offer to license the compound. Under this agreement, Merck would be responsible for the approval of Davanrik, its manufacture, and its marketing. The company would pay LAB an initial fee, a royalty on all sales, and make additional payments as Davanrik completed each stage of the approval process. Merck In 2000, Merck & Co., Inc. was a global research-driven pharmaceutical company that discovers, develops, manufactures and markets a broad range of human and animal health products, directly and through its joint ventures, and provides pharmaceutical benefit management services (PBM) through Merck-Medco Managed Care. Since 1995, Merck had launched 15 new products including Vioxx™ for the treatment of osteoarthritis, Fosamax™ for the treatment of osteoporosis and Singulair™ for treating asthma. The Company earned $5.9 billion on 1999 sales1 of $32.7 billion, about a 20% increase from 1998. Exhibits 1 and 2 contain Merck’s Income...
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...9-201-023 R E V: M A R C H 25, 2003 RI CH A R D S. R U B A CK Merck & Company: Evaluating a Drug Licensing Opportunity Rich Kender, Vice President of Financial Evaluation & Analysis at Merck, was working with his team to decide whether his company should license Davanrik, a new drug with the potential to treat both depression and obesity. The small pharmaceutical concern that developed the drug, LAB Pharmaceuticals, lacked the resources to complete the lengthy approval process, manufacture the compound, and market the drug. LAB had approached Merck with an offer to license the compound. Under this agreement, Merck would be responsible for the approval of Davanrik, its manufacture, and its marketing. The company would pay LAB an initial fee, a royalty on all sales, and make additional payments as Davanrik completed each stage of the approval process. Merck In 2000, Merck & Co., Inc. was a global research-driven pharmaceutical company that discovers, develops, manufactures and markets a broad range of human and animal health products, directly and through its joint ventures, and provides pharmaceutical benefit management services (PBM) through Merck-Medco Managed Care. Since 1995, Merck had launched 15 new products including Vioxx™ for the treatment of osteoarthritis, Fosamax™ for the treatment of osteoporosis and Singulair™ for treating asthma. The Company earned $5.9 billion on 1999 sales1 of $32.7 billion, about a 20% increase from 1998. Exhibits 1 and 2 contain Merck’s...
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...information in the chart below to answer problems 22, 23 and 24. | |Square Footage |Direct |Lab Tests | | | |Expenses | | |Utilities | |$200,000 | | |Administration |2,000 |500,000 | | |Laboratory |2,000 |625,000 | | |Day-op Suite |3,000 |1,400,000 |4,000 | |Cystoscopy |1,500 |300,000 |500 | |Endoscopy |1,500 |600,000 |500 | |Total |10,000 |$ 3,375,000 |5,000 | What are the Day Op Suite’s total expenses? [pic]Day Op Suite’s total expenses = $1,407,000 What are the Cystoscopy Department’s total expenses? Cystoscopy Department’s total expenses = $302,000 What are the Endoscopy Department’s total expenses? Endoscopy Department’s total expenses = $3,390,000 Use the following information for questions 4, 5, and 6....
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...9-201-023 REV: MARCH 25, 2003 RICHARD S. RUBACK Merck & Company: Evaluating a Drug Licensing Opportunity Rich Kender, Vice President of Financial Evaluation & Analysis at Merck, was working with his team to decide whether his company should license Davanrik, a new drug with the potential to treat both depression and obesity. The small pharmaceutical concern that developed the drug, LAB Pharmaceuticals, lacked the resources to complete the lengthy approval process, manufacture the compound, and market the drug. LAB had approached Merck with an offer to license the compound. Under this agreement, Merck would be responsible for the approval of Davanrik, its manufacture, and its marketing. The company would pay LAB an initial fee, a royalty on all sales, and make additional payments as Davanrik completed each stage of the approval process. Merck In 2000, Merck & Co., Inc. was a global research-driven pharmaceutical company that discovers, develops, manufactures and markets a broad range of human and animal health products, directly and through its joint ventures, and provides pharmaceutical benefit management services (PBM) through Merck-Medco Managed Care. Since 1995, Merck had launched 15 new products including Vioxx™ for the treatment of osteoarthritis, Fosamax™ for the treatment of osteoporosis and Singulair™ for treating asthma. The Company earned $5.9 billion on 1999 sales1 of $32.7 billion, about a 20% increase from 1998. Exhibits 1 and 2 contain Merck’s...
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