Mgt 440 Ananlysis
Business and Management
Submitted By JIANGZHE2014
Merck is one of the most reputable drug companies. It is very highly regarded for its innovative drug discoveries to treat diseases such as AIDS, High cholesterol and Hypertension and have improved the human lives around the world.
Merck’s innovative ability and its reputation along with the meticulous submission of documents allowed the company to secure FDA approvals much faster than its competitors. However, when Merck released its drug. Vioxx for the treatment of arthritis, the drug’s effectiveness combined with an effective direct to consumer marketing campaign made it a blockbuster drug with $2.5 billion in sales, but when it was revealed during a study that the drug increased risk of cardio vascular disease by at least three times, Merck quickly withdrew the drug from the market.
Merck can be faulted for several questionable decisions and judgments with the Vioxx launch. They either ignored or dismissed several early indications of increased risk of heart attacks both in its own studies and other published articles, in an attempt to get to the market faster. This proved to be deadly when further studies conformed the suspicions and lead to ultimately lead to another bad decision of recalling the drug from the market too soon. This was probably an attempt to avoid potential lawsuits, when the jury was still out on whether the benefits of Vioxx outweighed its risks. Merck should instead of a recalling, should have continued to work with FDA and have them make the decision of what corrective action needs to be taken.