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Case
| HBS Case Collection
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2009
Merck: Managing Vioxx (A)
by
Robert L. Simons, Kathryn Rosenberg and Natalie Kindred
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Abstract
This two-class case series allows students to stand in the shoes of CEO Ray Gilmartin during the unfolding stages of a reputational crisis. Merck's mission statement claims to "put patients first," but the company is widely criticized for putting profit before patient safety. The (A) case describes the discovery of Vioxx, a new arthritis drug, and asks students to calculate the drug's lifetime expected value. Supplements are handed out in class as the story unfolds: (B) evidence of life-threatening side effects, (C) decision options, (D) announcement to withdraw Vioxx, (E) reaction by patients, shareholders, media, and regulators, (F) Merck fights back, and (G) wrap-up. At the end of the case series, students may conclude that doing the right thing sometimes requires very hard choices.
Keywords: Ethics;
Crisis Management;
Reputation;
Decision Choices and Conditions;
Customers;
Business or Company Management;
Cost vs Benefits;
Corporate Accountability;
Business and Shareholder Relations;
Business and Stakeholder Relations;
Customer Focus and Relationships;
Pharmaceutical Industry;
Citation:
Simons, Robert L., Kathryn Rosenberg, and Natalie Kindred. "Merck: Managing Vioxx (A)." Harvard Business School Case 109-080, April 2009.