Mercks & Vioxx Morga M.Arthur Erik Jacobsen Torrey Sargent Cristina Harb

Merck’s Values Improving human life Improving animal health Having a high level of ethics and integrity High level of scientific excellence Aspiring to improve the health and wellness of people by expanding access to medicine Promoting diversity & teamwork

Background of Case One of the 7 largest pharmaceutical companies

Are there holes in the free market? Yes, but the free market seems to close them up on its own. When the drug was first released there was a lack of information for the consumer. Once the information was discovered it was put on the bottle of Vioxx but not in the warning labels section. 5 years after Vioxx was on the shelf, Mercks made the decision to pull it, not the FDA.

Did the Market Fail? Yes because the government intervened. Even though Merck's pulled it on their own they were convicted of a criminal misdemeanor for illegally promoting Vioxx and deceiving the government about the drugs safety

Stakeholders Consumers. 20 million took the drug and was marketed in over 80 countries. Anywhere from 30, ,000 deaths. 88, ,00 cases of heart disease. Merck. Paid $950 million and plead guilty to criminal charges. Employees. Individuals personal character is assumed to be the same as the companies.

Externalities Innovators dilemma Is the thing that I wrote above correct? Thank you for doing this!!

What was the responsibility of the company? To provide the correct information to the consumers taking Vioxx.

Our opinion Merck did not act on their values The free market failed because Merck did not give the correct information The free market is not perfect Many unforeseen externalities were incurred