Merck & Co., Inc. (B) Case Study

Introduction

The drug in question is Daraprim, a life-saving medication used to treat toxoplasmosis, which can be deadly for patients with weakened immune systems, such as cancer patients and AIDS patients. The drug’s price was increased from $13.50 to $750 per pill in 2015, sparking public outrage (Bollier, 1991).

Discussion

Giving the drug away for free would be a huge win for patients and the public, making a life-saving medication accessible to those who need it. However, there are also risks associated with giving away Daraprim for free. For instance, the drug’s manufacturer, Turing Pharmaceuticals, could be accused of price gouging if it is revealed that the company was making a large profit from the drug’s high price tag. Additionally, giving away Daraprim for free could set a precedent for other drug companies to follow suit, which could ultimately lead to higher prices for drugs across the board.

It is right for Merck & Co., Inc (B) to give the drug away since it is life-saving. Thus, considering its price, the company should ensure that no one dies because they cannot afford to purchase it. Moreover, doing so would be suitable for publicity since the organization would be seen as caring and willing to help the needy. Finally, the company sales of other Merck & Co., Inc (B) products would increase. For instance, the public is more likely to purchase the other firm’s products if they see its generosity towards its customers.

Conclusion

Merck & Co., Inc (B) should publicize their decision to give away drugs since it would help to build trust and goodwill with the public. If people know that the company is willing to give away life-saving drugs, they will be more likely to be attracted to and trust the company. Finally, it would help to build brand awareness; for instance, if people realize the company is giving away drugs, they will be more likely to remember it positively.

Reference

Bollier, D. (1991). Merck & Co., Inc (B). The Business Enterprise Trust.

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StudyCorgi. "Merck & Co., Inc. (B) Case Study." September 10, 2023. https://studycorgi.com/merck-and-co-inc-b-case-study/.

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StudyCorgi. 2023. "Merck & Co., Inc. (B) Case Study." September 10, 2023. https://studycorgi.com/merck-and-co-inc-b-case-study/.

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