INTRODUCTION Merck & Company : Evaluating the Licensing Opportunity Various recently-born biotech companies sell their technologies in either finished or early stage to bigger companies in need of financing capital to preceed business, while those bigger companies acquire technologies to scout for promising profitable business. This sort of process needs numbers of decision makings and agreements from both parties on the valuation methods is crucial here. The valuation method being used has
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I believe neither Merck nor Pfizer acted ethically or socially responsible during the Vioxx disaster. Evidence suggests that Merck might have knows about the harmful side effects of Vioxx and yet they hesitated for over 3 years to recall the drug. There was also an allegation that the company had manipulated and covered-up the results of the medical trials in their favor. An ethical thing to do would be to simultaneously recall the drug as well as inform the public about the dangers of using Vioxx
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I do not believe that Merck made a socially responsible decision when Vioxx was introduced into the pharmaceutical market. Scientists that were involved in product development and testing knew that there were serious health risks that could be side effects of the medication- such as cardiovascular complications. If they considered the lives that could have potentially been and as we know now were affected, the medication could have been revamped with changes that would minimize these harmful side
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Executive Summary The pharmaceutical company Merck has traditionally sold medicines and products that have been developed through its internal research. So, it is not surprising to see that the company spends quite a large amount of money on research. This is reflected in its financial statement as given in the exhibit 1. The R&D expenditure is about 7% of Merck’s revenues. The life cycle of a drug takes it from the research labs to three phases of testing, each increasingly complex, then through
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Professor: Yvan Nezerwe Keller Graduate School of Management Table of Contents C5.1.0 Executive Summary…………………………………………….3 C5.1.1 The Major Driving Force of the Merck-Medco Acquisition.. 3-4 C5.1.2 The Role of PBM Companies……………………………….. 4-5 C5.1.3 Utilization of Medco’s Database……………………………. 5-6 C5.1.4 Competitive Reactions to Merck- Medco Acquisition ……. 6 C5.1.5 SWOT Analysis……………………………………………..6-8 C5.1.6 Impact on Marketing and Sales………………………….. 8-9 C5.1.7 Impact on Operational……………………………………
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valuation. The method used has to be objective and valid. This case study is about LAB and its decision to license off Davanrik to Merck. This analysis is about how Merck has been able to generate substantial returns given the costly and lengthy time to develop drugs and the potential outcome for Davanrik should LAB licenses off to Merck, Also, the analysis will determine if Merck should license the drug and for how much, and to determine how much LAB would receive given a 5% royalty fee on any cash flow
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Merck Case Study Questions Instructions: We will discuss the Merck case in class on Thursday, February 20, 2014. In preparing for our class discussion, please focus on the following questions. 1. How has Merck been able to achieve substantial returns to capital given the large costs and lengthy time to develop drugs? - New product process: Merck is real fast in marketing drugs, as it develops cross-functional teams and starts marketing early in the development process only - through
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1. How many of its common shares is Merck authorized to issue as of 12/31/11? Merck authorized 6,500,000,000 shares. 2. How many of its common shares has Merck actually issued as of 12/31/11? Merck issued 3,576,948,356 shares. 3. How many of its common shares does Merck hold in its treasury as of 12/31/11? 536,109,713 shares 4. How many of Merck’s common shares are outstanding as of 12/31/11? 3,040,838,643 shares 5. How many of its shares did
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In this case, action was brought against Merck & Co., Inc. in relation to the drug vioxx also known as rofecoxib. The action taken against Merck was brought forth by plaintiff’s who were injured as a result of taking this drug. The plaintiff’s where the actual ones injured as well as any spouse, child or decedent of a family member who had passed as a result of taking this drug. The drug was believed to relieve symptoms of osteoarthritis. Merck requested on November 23, 1998 that they be
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dilemma, the only viable uses for the drug would be for people who living in some of the poorest countries in the world; how could Merck underwrite the development of such a product for which there would most likely be of no economic value? On average it takes 12 years of research and development to bring a drug to market and costs in the neighborhood of $200 million. Merck would likely never recoup this investment cost and it would never be a profitable product. However, there would not be a lack
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