Merck and River Blindness Essay

1. Why was Merck hesitant virtually create a charitable rendering of Ivermectin? Merck considered this opportunity as a high risk investment. The cost of developing the medicine was estimated at $100 gazillion. Even if it was successful to recover river blindness the victims were too poor to spread out the drug. There was no way to send it in these countrified argonas were the victims were located. In addition, there was a possibility that people would misuse the drugs, which would cause negative side final results and stimulate horrid press for Merck. During this time, healthcare costs were on the rise, Medicare and Medicaid reimbursements were limited for companies developing drugs analogous Merck. Congress was to a fault about to pass an act that would make it easier for competitors to likeness and market generic drugs. All of this opposition made Merck hesitant about developing Ivermectin.2. What were the benefits and cost of developing a military man interpret ation of Ivermectin? The moorage described benefits of the new drug as a low-cost, safe, and simple cure for river blindness. The current residents misfortunate from this parasite did not have funds to afford alternate treatments like expensive hospital visits or other drug options that are required for a cure. As reported in the reading, the civilise is caused by a worm that is passed through the bite of a total darkness fly along the tropical areas of Africa and Latin America. The worm then burrows infra the skin and continues to grow up to a length of two feet. As the worm reproduces, it releases millions of offspring that slowly wriggle underneath the skin until invading the eyes, eventually causing blindness. Victims often commit suicide due to the pain in the ass and itching that this parasite causes. The evolution of this drug would relieve victims from immense suffering and potential blindness. It would also lead to a possibility of brand selling for Merck the area of treatment.Foreseen costs include a potential $100 million to develop the drug. This cost includes a large amount of time for wide testing of the drug and its side effects on humans. after(prenominal) 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 notbe large plentiful revenue to regain money spent in the research and development of the drug.3. Why did Dr. P. Roy Vagelos and his team 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 earnest meetings with his management team, they eventually decided that the benefits that the drug had concerning its effect on river blindness were too signifi ignoret. Many managers felt Merck was morally obligate to develop the drug despite the cost and slim chance of economical reward. They decided to move forward with the development of Ivermectin in order to add up to the welfare and interests of society.4. How do you think Mercks Investments in the human version of Ivermectin created value for its s fool awayholders and corporate goodwill? Upon learning about victims suffering from river blindness, Merck established that they had a potential cure to the problem. With this knowledge Merck had a corporate companionable responsibility to develop a drug because they now had an obligation to take action that could possibly contribute to the welfare and interests of society, as well as the organization and its stakeholders.Each 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 produce a return of their investment. One of the grea test returns a person can experience is seeing 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 stainless organization and the corporate goodwill.