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TABLE OF CONTENTS
1. ABSTRACT
2. INTRODUCTION
3. MERCK, INC
4. THEN AND NOW
5. STAKEHOLDERS
6. VISION & MISSION
7. FDA
8. ...
ABSTRACT
This case relates to the pharmaceutical industry and is about Merck’s
recalled product Vioxx. The product was ver...
INTRODUCTION
MERCK, INC.
“ We try never to forget that medicine is for the people. It is not
for profits. The Profits follow, and if we...
THEN & NOW
R AY M O N D G I L M A R T I N
2 0 0 5 C E O
K E N N E T H F R A Z I E R
2 0 1 1 - P R E S E N T C E O
• Patients and
Families
• Doctors and
scientist
• Payers
• Government
regulators
• Shareholders
• Issue experts
• Communit...
VISION & MISSION
V I S I O N S TAT E M E N T
We make a difference in the
lives of people globally
through our innovative
m...
FDA
 The Food and Drug Administration (FDA) is a government agency that
was established in 1906 with the passage of the f...
Election
Cycle
Total
Contribution
Contributio
ns From
Indivi.
Contributio
ns from
PACs
Soft Money
Contributio
ns
% to
Repu...
BLOCKBUSTER MODEL
• In the 1990’s, 80 percent of growth for big pharmaceutical firms
comes from the “blockbuster” drugs.
•...
DTC ADVERTISING
• In 1997 , The FDA for the first time allowed drug companies advertise
directly to consumers.
• The took ...
RISE TO FAME
• Vioxx, which is the drug at the center of Merck’s legal woes, was
known as a “selective COX-2 Inhibitor.”
•...
SAFETY WARNING
• Doubts about Vioxx from their own scientists
• VIGOR Study – 5 times more likely to have a heart attack t...
WHAT HAPPENED? THE RECALL
HAPPENED…
• The company's top research and marketing executives had a meeting to
consider whethe...
QUESTIONS, COMMENTS, CONCERNS?
Merck powerpoint
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Merck powerpoint

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Merck powerpoint

  1. 1. TABLE OF CONTENTS 1. ABSTRACT 2. INTRODUCTION 3. MERCK, INC 4. THEN AND NOW 5. STAKEHOLDERS 6. VISION & MISSION 7. FDA 8. POLITICAL CONTRIBUTION 9. BLOCKBUSTER MODEL 10. RISE TO FAME 11. DTC ADVERTISING 12. SAFETY WARNING 13. WHAT HAPPENED 14. QUESTIONS
  2. 2. ABSTRACT This case relates to the pharmaceutical industry and is about Merck’s recalled product Vioxx. The product was very successful in sales, but very harmful to the consumer. The influence that the pharmaceutical industry had on capital hill influenced the FDA’s decision to look the other way. Our question is, should there have been further action on those responsible for the deaths and damages done to the consumers?
  3. 3. INTRODUCTION
  4. 4. MERCK, INC. “ We try never to forget that medicine is for the people. It is not for profits. The Profits follow, and if we have remembered that they never fail to appear. The better we have remembered that, the larger they have been” - George W. Merck
  5. 5. THEN & NOW R AY M O N D G I L M A R T I N 2 0 0 5 C E O K E N N E T H F R A Z I E R 2 0 1 1 - P R E S E N T C E O
  6. 6. • Patients and Families • Doctors and scientist • Payers • Government regulators • Shareholders • Issue experts • Communities • Environmental stakeholders • Employees • Suppliers and business partners • Industry associations STAKEHOLDERS
  7. 7. VISION & MISSION V I S I O N S TAT E M E N T We make a difference in the lives of people globally through our innovative medicines, vaccines, and consumer health and animal products. We aspire to be the best healthcare company in the world and are dedicated to providing leading innovations and solutions for tomorrow. M I S S I O N S TAT E M E N T To provide innovative, distinctive products and services that save and improve lives and satisfy customer needs, to be recognized as a great place to work, and to provide investors with a superior rate of return.
  8. 8. FDA  The Food and Drug Administration (FDA) is a government agency that was established in 1906 with the passage of the federal food and drugs act.  The agency is currently separated into five centers which oversee a majority of the organizations obligations involving: • Food • Drugs • Cosmetics • Animal food • Dietary supplements • Medical devices • Biological goods • Blood products  In 1992, Congress passed the prescription Drug User Fee Act (PDUFA) that required the pharmaceutical companies to pay fees to review new medicines.
  9. 9. Election Cycle Total Contribution Contributio ns From Indivi. Contributio ns from PACs Soft Money Contributio ns % to Republican s 2006 $5,187,393 $1,753,159 $3,434,234 N/A 70% 2004 $18,181,045 $8,445,485 $9,735,560 N/A 66% 2002 $29,441,951 $3,332,040 $6,957,382 $19,152,529 74% 2000 $26,688,292 $5,660,457 $5,649,913 $15,377,922 69% 1998 $13,169,694 $2,673,845 $4,107,068 $6,388,781 64% 1996 $13,754,796 $3,413,516 $3,584,217 $6,757,063 66% 1994 $7,706,303 $1,935,150 $3,477,146 $2,294,007 56% 1992 $7,924,262 $2,389,370 $3,205,014 $2,329,878 56% 1990 $3,237,592 $771,621 $2,465,971 N/A 54% Total $125,291,328 $30,374,643 $42,616,505 $52,300,180 67%
  10. 10. BLOCKBUSTER MODEL • In the 1990’s, 80 percent of growth for big pharmaceutical firms comes from the “blockbuster” drugs. • Ideally, a Blockbuster drug is a medicine that could control chronic but nonfatal conditions that afflicted large amounts of people with health insurance, which would include medicines for allergies, cholesterol, arthritis, etc. • In 2003, Merck spent $422 million to market Vioxx to doctors and hospitals.
  11. 11. DTC ADVERTISING • In 1997 , The FDA for the first time allowed drug companies advertise directly to consumers. • The took advantage of the opportunity by placing ads for Drugs like a Viagra and Nexium in different media outlets. • In 2004, The Industry spent over $4 billion on such DTC Marketing. • Merck spent more than $500 million on advertising on Vioxx. • It is criticized by some because it put pressure on doctors to prescribe drugs that might not be best for the patient.
  12. 12. RISE TO FAME • Vioxx, which is the drug at the center of Merck’s legal woes, was known as a “selective COX-2 Inhibitor.” • In May of 1999, The FDA finally approved Vioxx for the treatment of osteoarthritis, acute pain in adults and menstrual symptoms and it was approved later for rheumatoid arthritis. • Vioxx became exactly what Merck had hoped: a blockbuster.
  13. 13. SAFETY WARNING • Doubts about Vioxx from their own scientists • VIGOR Study – 5 times more likely to have a heart attack than Aleve • Kaiser/Permanente Study – 3 times more likely to have a heart problem than Pfizer’s Celebrex • APPROVe Study – Twice the risk of having a heart attack than a Placebo Pill
  14. 14. WHAT HAPPENED? THE RECALL HAPPENED… • The company's top research and marketing executives had a meeting to consider whether to develop a study to directly test a disturbing possibility: that the blockbuster drug Vioxx, a painkiller, might pose a heart risk. • Privately, Merck was worried about this study. Dr. Edward Scolnick, the company’s research director said that cardiovascular events were “clearly there” and that they were a “shame” but he added “there is always a hazard.” • On September 27th, 2004, Dr. Peter S Kim. Had suggested to Gilmartin that Vioxx be withdrawn from the market due to the “unacceptable” risk. The CEO agreed and the following day Gilmartin notified the board and the company had contacted the FDA.
  15. 15. QUESTIONS, COMMENTS, CONCERNS?

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