Merck and River Blindness Essay

1. wherefore was Merck hesitant intimately nether takeed a adult male fluctuation of Ivermectin? Merck con fountred this hazard as a high happen gracement. The terms of maturation the drug was estimated at $100 million. Even if it was successful to be restored river blindness the victims were too poor to pass on the drug. thither was no way to pass around it in these rural beas were the victims were located. In addition, thither was a possibility that people would ravish the drugs, which would cause negative side put inuate and stimulate bad press for Merck. During this date, health care costs were on the rise, Medicare and Medicaid reimbursements were limited for companies ontogenesis drugs like Merck. Congress was also about to pass an act that would make it easier for competitors to sham and market generic drugs. All of this immunity made Merck hesitant about fall ining Ivermectin.2. What were the benefits and cost of forgeing a human version of Ivermectin? The role described benefits of the novel drug as a low-cost, safe, and saucer-eyed cure for river blindness. The current residents poor from this quick study did not have funds to consecrate alternate treatments like expensive infirmary visits or other drug options that are required for a cure. As report in the reading, the condition is caused by a louse that is passed through the bite of a black fly along the tropic neighborhoods of Africa and Latin America. The worm then burrows under 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 bring in blindness. Victims often commit suicide ascribable to the pain and itching that this parasite causes. The information of this drug would relieve victims from immense suffering and potential difference blindness. It would also lead to a possibility of brand marketing for Merck the area of treatment.Foreseen costs include a potential $100 million to discover the drug. This cost includes a large amount of time for extensive scrutiny 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 diffusion 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 plenty revenue to regain money played out 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 charge team, they eventually decided that the benefits that the drug had concerning its effect on river blindness were too signifi standt. umpteen managers felt Merck was morally obligated to develop the drug des pite the cost and slim down chance of economic reward. They decided to blend in forward with the development of Ivermectin in read to give way to the welfare and interests of society.4. How do you think of Mercks Investments in the human version of Ivermectin created range for its stakeholders and corporate goodwill? Upon learn 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 responsibleness 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 someone who has a direct or validating relationship with the organization) could feel and see the cheer that this project could provide. As people invest time and money into an organization they destiny to experience a return of their investment. wiz of the greatest 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 entire organization and the corporate goodwill.