Merck and River Blindness Essay

1. Why was Merck indecisive about split uping a human version of Ivermectin? Merck considered this opportunity as a high put on the line targetment. The comprise of developing the do do drugss was estimated at $100 million. Even if it was successful to cure river blindness the victims were too slimy to afford the drug. There was no way to distribute it in these folksy areas were the victims were located. In addition, there was a possibility that people would misuse the drugs, which would slip negative side effects and stimulate bad press for Merck. During this time, health care appeal were on the rise, Medicare and Medicaid reimbursements were limited for companies developing drugs the likes of Merck. Congress was similarly about to pass an act that would make it easier for competitors to copy and market generic wine drugs. All of this opposition made Merck hesitant about developing Ivermectin.2. What were the benefits and woo of developing a human version of Ivermectin ? The baptistery described benefits of the untested drug as a low-cost, safe, and simple cure for river blindness. The current residents harm from this leech did not have funds to afford alternate treatments like expensive hospital visits or other drug options that are need for a cure. As reported in the reading, the condition is caused by a worm that is passed through the bite of a black fly along the tropical areas of Africa and Latin America. The worm then burrows under the skin and continues to formulate up to a length of two feet. As the worm reproduces, it releases millions of proceeds that slowly wriggle underneath the skin until invading the eyes, eventually cause blindness. Victims often commit suicide due to the pain and itching that this parasite causes. The development of this drug would relieve victims from immense suffering and emf blindness. It would also lead to a possibility of brand marketing for Merck the area of treatment.Foreseen costs include a potenti al $100 million to develop the drug. This cost includes a large amount of time for extensive testing of the drug and its side effects on humans. After testing is completed, Merck would be required to distribute the drug to victims within the affected rural areas. The distribution cost would be high as there are no distributors already established in these rural areas. There was also a risk that there would not be large enough revenue to witness money spent in the research and development of the drug.3. Why did Dr. P. Roy Vagelos and his group ultimately decide to develop a human version of Ivermectin? The case provided motives why Roy and his team decided to develop the drug. After conducting several zealous meetings with his management team, they eventually decided that the benefits that the drug had concerning its effect on river blindness were too significant. Many managers felt Merck was morally obligated to develop the drug despite the cost and slim chance of economic re ward. They decided to dissemble forward with the development of Ivermectin in order to contribute to the welfare and interests of society.4. How do you think Mercks Investments in the human version of Ivermectin piddled value for its stakeholders and in collectived goodwill? Upon learning about victims suffering from river blindness, Merck realized that they had a potential cure to the problem. With this knowledge Merck had a corporate social responsibility to develop a drug because they now had an obligation to take action that could by chance contribute to the welfare and interests of society, as well as the organization and its stakeholders. all(prenominal) stakeholder (which is any person who has a direct or indirect relationship with the organization) could feel and see the value that this project could provide. As people invest time and money into an organization they want to experience a recall of their investment. One of the greatest returns a person can experience is comprehend someones life change for the better. This investment of each stakeholders time and money in a human version of Ivermectin would create a high level of value for the entire organization and the corporate goodwill.