Case summary

Merck is a Multi-National company which research, develop, manufacture and also sells wide
range of medicine & drugs for people. Merck was found in 1668 by Friedrich Merck. In 1891
Merck is established in Germany and managed to become the worlds largest producer of
prescription drugs. Over 300 years, Merck, having become an American firm, employed over
28000 people and have operations all over the world. Merck was developed as a research
based company that win many awards due to their significant research in medicine. Merck
become so famous because of their research. But Merck was in problem and cannot replicate
its former success currently. Revenue of Merck has went down 1 percent from 2008 to 2009.
Due to lower sales of Forsamax. Dr Turner, as the new appointed CEO has many homework
to take care of. Another significant problem is their top medicine patent are nearly expired
and many generic medicine manufacturer are ready to imitate and sells the medicine. The
environment for pharmaceutical company has been down lately for the big company, this is
because the research and development cost for developing new medicine was barely been
covered in the sales of the medicine before the patent expired. If the patent of their drugs
expired, other company can produce and sells same medicine with lower price (generic) thus
customer tend to purchase the Generic one rather than the expensive medicine. This situation
makes big company like Merck in problem. Up until now, Merck only do research
themselves. They doesnt recruit RND Company or searching from universities. Merck RND
development activities has decreased in efficiency lately.