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Ethical issues within the pharmaceutical industry
Monopoly in pharmaceutical industry
Ethical issues within the pharmaceutical industry
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Merck, one of the largest pharmaceutical companies in the world and that was established in 1891, is currently facing disputes of ethical dilemmas and federal charges of fraud from the whistleblowers. In the pharmaceutical industry, Merck has had a government-granted monopoly by which it was given exclusive license to be the sole manufacturer and seller of a mumps vaccine in the U.S. Thus, its’ potential competitors are excluded from the market by law. The first FDA approved vaccine was developed from the mumps virus that infected a five year-old girl, Jeryl Lynn, in 1967. Nevertheless, as of today, Merck continues to use Jeryl Lynn strain of the virus for its vaccine, which is no longer providing patients with an adequate level of protection. …show more content…
And yet, some doctors and federal agencies even blindly supported Merck’s vaccines. By doing that, they attempted to maximize their profit and took advantage of the patients who are being injected with MMR vaccines without the awareness of its actual effectiveness. In the eyes of those businessmen, they did not owe responsibility to those patients as they believed that they deserved the benefits of their hard work. They thought patients were the ones who were willing to be injected under free will and it was their responsibility to undertake the consequences. They ultimately ranked their success in business over the well-being of the whole community. According to Rawl, Justice is the balance between collective equality and individual freedom. It is critical for one to be granted with his/her freedom; however, if it interferes with other people’s freedom, then the justice system becomes out of balance. By concealing the fact, Merck has taken away the patient’s freedom of choice to determine what is in fact truly beneficial for them and provide equal access to knowledge. Therefore, the idea of a free market should be overridden when taking into consideration personal welfare. Merck should not put patients’ health at risk in exchange for their own profits. Additionally, it is not fair that Merck relied on its fraudulent practices to earn millions of dollars, because they are not getting its deserved justice for a vaccine that does not provide adequate immunization and having the monopoly of the
Confronted with two failed methodologies, Merck then falsified the test data to guarantee the results it desired. Having achieved the desired efficacy threshold, Merck submitted these fraudulent results to the FDA and European Medicines Agency. Merck attempted to cover up their fraudulent testing actions by destroying evidence of the falsified data and then lying to an FDA investigator. Merck also attempted to bribe the team on the MMRII testing process with financial incentives to cooperate and remain silent about the fraudulent activities and testing taking place. Merck went as far as to threaten Stephen Krahling with jail if he reported fraud to the FDA. Clearly, Merck’s purposes are corrupted and its actions of manipulating science distained its very mission of making the public healthier. Merck is doing the exact opposite of what its company’s objective is to do, it is putting young children and the public’s health at risk, all for the objective of continuous profit, reputation, power, influence, and maintaining its precious license to continue to distribute this vaccine. Thus, Merck’s actions and behaviors are unethical for defrauding the FDA and European Medicines
“Vaccinations are causing a major upsurge in childhood diseases, adult maladies, and even deadly ailments such as Gulf War Syndrome and Lou Gehrig’s disease” (Blaylock). Every now and then an individual’s doctor calls telling them about the latest vaccine they should receive. The person immediately schedules a time to come in and get it done. But do they even give a second thought about it? Have they ever thought that maybe they do not need another vaccination? Many people have not taken the time to seriously think about the process of immunization. The truth is, there are many dangers that the average person should be unaware of. Rarely do vaccines actually accomplish what the public has been told. In fact, a lot of vaccines contain harmful substances that have been linked to disorders such as autism. The lack of education and dishonesty from doctors are putting people in danger of health problems without even realizing. Many parents feel obligated for their children to get vaccinated because of school, not knowing they have the alternative option of refusing immunization.
The unforgettable story of vaccines is a story of triumph and controversy. The saddest part of the story is persistent ignorance and a lack of education, comingled with the personal need of some parents to explain away the problems of their children, have caused the controversy to arise. The good news is that the triumphant reality of vaccines as a whole is still the larger enduring legacy. The human papillomavirus vaccine is not an exception to this rule; in fact despite all the controversy surrounding the vaccine, it is one of medicine’s greatest lifesaving gifts to us.
Mumps is a paramyxovirus that is closely related to the parainfluenza virus. Its symptoms were first described in the 5th century BC, and it was a very common childhood affliction until the last several decades. It was identified as a virus in 1934, and an effective vaccine was developed in 1967. Mumps is acquired by aerosol, necessitating close human interaction for spread. Human beings are the only known reservoir for mumps virus, and there is only one serotype.
18. Salmon, Daniel A. and Saad B. Omer, ‘Individual freedoms versus collective responsibility:immunization decision-making in the face of occasionally competing values’, Emerging Themes Epid, 3 (2006):
Main Issue In 2000, Rich Kender, Vice President of Financial Evaluation and Analysis at Merck & Company was discussing the opportunity of investing in licensing, manufacturing and marketing of Davanrik, a drug originally developed to treat depression by LAB Pharmaceuticals. LAB proposed to sell the rights of all the future profits made from the successful launch of Davanrik at the cost of an initial fee, royalty payments and additional payments as the drug completed each stage of the approval process. Merck & Company's organizational goal is to constantly refresh its drug development portfolio and reach as many customers as possible during the patented period. So there was not only the potential of financial gain or quantitative aspect of the offer, but also the qualitative value which will be added by getting better positioning in the risky pharmaceutical industry.
Being presented with the problems in the implementation of the SAP ERP system, it is evident that Novartis Pharmaceuticals requires a comprehensive action plan that resolves key issues and the underlying problem. Refer to Exhibit A for a graphical representation of the action plan.
On the other hand, some individuals think that mandatory vaccines deny parents their rights with some believing that “the mandatory vaccination requirements for attendance at public school deny parents their rights to raise their child as they see fit” (Kluck, Shana), and other parents thinking that “God created the human body as a temple and that the body should not be destroyed by injecting a virus into it” (Staver, Mathew D.) However, the fact that parents decide to or want to jeopardize the security of their child for the sake of religion or some other factor is unethical in itself. For example, when a girl named Madeleine grew sick due to her diabetes, “her parents decided to pray for her, instead of taking her to a doctor” (David M Perry), and this scenario could occur with a family against vaccines for religious or other personal reasons. This shows that being against vaccines for no real biological reason is oppressing the rights of the child by putting it in harm’s way, especially considering the fact that
In the Frontline episode The Vaccine War, a progressively distressful debate ensues among many scientists and doctors within the public health system and an unnerving alliance of parents, politicians, and celebrities. The topic of debate is the overwhelming pressure parents feel to vaccinate their children and their right to decline such vaccinations. In several American neighborhoods, groups of parents have been exercising their right to refuse vaccinations, which has elevated anxiety on the return of vaccine-preventable diseases such as pertussis and measles. The reason such parents are denying their children various vaccines such as the MMR “triple shot” for measles, mumps, and rubella is because they are convinced that it is linked to autism, a link that has yet to be proven. Many of these parents are focused solely on their children, not taking into account that their decision may put the American populace at risk for disease. Such parents are not thinking about other members of society that vaccines don’t work for, and in certain adolescents the effects deteriorate, thus only when every person is immunized the “heard immunity” is successful.
Threat of new entrants is relatively high. Companies forming alliances are potential rivals. Even if earlier such company was not considered to be a threat, after merging with some research and development company or forming alliance with another pharmaceutical company it would become a rival to Eli Lilly. The threat is however weakened by significant research and development costs necessary to successfully enter the business. Eli Lilly’s focus on a relatively narrow market of sedatives and antidepressants weakens the threat of new entrants, but other products that form lesser part of company’s sales such as insulin and others are exposed to high threat of new entrants. The need of obtaining certificates and licenses also weakens the threat of new entrants. Discussed above leads to the conclusion that threat of new entrants is medium.
Merck was one of the largest pharmaceutical companies in the world. Merck was about to lose patent protection of two of its best selling drugs, which had been a significant part of their $2 billion annual sales. Merck began putting millions of dollars into research (up to $1 billion) and within three years, Merck was able to discover four powerful medications. Profits weren’t all that Merck cared about; Merck’s founder believed that "medicine is for people. It is not for the profits." • He also believed that following the “medicine is for people” philosophy would lead to profits and had yet to fail.• River Blindness is caused by parasitic worms, which can be found in the Middle East, Africa and Latin America.• These places are developing, so many citizens are poor. • The worm larvae can enter the body through fly bites, with some people getting thousands a day. • Worms can cause grotesque growths, but the major problem lies in reproduction when millions of progeny are released in the system. •The resulting itching is so intense the infected have committed suicide. • Eventually, the larvae may cause blindness. • Two existing drugs could kill the parasite, but have serious, potentially fatal, side effects. • The only safe combative measure available was insecticides that eventually lose potency with immunity of the flies. • The average drug takes $200 million in research and 12 years time to produce. • In order for companies to stay in business (and ease human pain), they must make complex decisions about which drugs offer the most promise. • Investing time/money into drugs for rare diseases is risky (because the pool of recipients is small). • There are enough people with river blindness ...
Since its humble beginning as a small drugstore, Merck has placed a large amount of importance on improving the health and well-being of its customers. As drug patents expire and genetic forms of their top products become available, Merck’s strategy is to do the unexpected; instead of raising the price of their older products in favor of patent protected new drugs, Merck focuses on reducing their cost in order to better compete with their generic counterparts. Additionally, Merck’s plan for growth now encompasses a much more aggressive pursuit of new drugs in their pipeline through extensive research. Merck became the second largest health care company in the world after the merger with Schering-Plough in 2009 and has contributed great discoveries like the first cervical cancer vaccine and great resources like the Merck Manuals which are utilized as a source of information to doctors, scientists and consumers worldwide .
Vaccinations have significantly reduced the disease rate throughout the world. Usually, vaccines prove to be between 90 and 99 percent effective. This reduces disease and mortality rate by thousands every year (Jolley and Douglas 1). On average, vaccines save the lives of 33,000 innocent children every year (“Vaccines” 1). In addition, if a vaccinated child did contract the vaccine’s targeted illness, that child would, in general, have more mild symptoms than an unvaccinated child that contracts the same illness. These vaccinated children will have less serious complications if they do contract the disease; they will be much more treatable, and have a lower risk of death (Jolley and Douglas 2). The risks of not vaccinating greatly outweigh the small risks of vaccination. Diseases like measles and mumps can cause permanent disability. While there i...
The case under analysis, Eli Lilly & Company, will be covering the positives and negatives with regards to the business situation and strategy of Eli Lilly. One of the major pharmaceutical and health care companies in its industry, Lilly focused its efforts on the areas of "drug research, development, and marketed to the following areas: neuroscience, endocrinology, oncology, cardiovascular disease, and women's health." Having made a strong comeback in the 1990's due to its remarkably successful antidepressant Prozac, was now facing a potential loss in profits with its patent soon to expire. The problem was not only the soon to expire patent on Prozac, but the fact that Prozac accounted for as much as 30% of total revenue was the reality Eli Lilly now faced. (Pearce & Robinson, 34-1)
The third and most essential reason that the United States should enforce national inoculation pertains to the concept that vaccines can support not only individual immunity, but also herd immunity to protect those who are medically incompatible with vaccines. A prevailing argument that pro-volunteer individuals frequently make is that vaccines have the potential to be harmful to individuals; a primary motive behind this pertains to an alleged correlation that exists between thimerosal, a component of vaccines, and countless disorders including autism (Benjamin, 2003). According to Barbara Loe Fisher, president of the National Vaccine Information Center, “When you take a look at the ever-increasing numbers of doses of vaccines babies have received over the past two decades and you see this corresponding rise in chronic disease and disability in our children, it is out of control” (Benjamin, 2003). Many speculated that the mercury contained within the thimerosal was to blame for this.