Mykno’s Dilemma

Jack Spratt the CEO of the Mykno’s pharmaceuticals Inc. is facing the most critical decision of

his career, on which the future of the company depends. He announced that Mykno discovered

the cure for the AIDS, and the pressure from the governments and consumers keeps on

growing as Jack fails to make the decision. Mykon is a major international research based

pharmaceutical group, which engages in the research, development, manufacturing and

marketing of human health-care products for the sales in both prescriptions and over the

counter (OTC) markets. The company has long tradition of excellence in research and

development (R&D), as company’s last three financial years constituted 15% expenditure on

R&D of its sales. The company sells their products internationally in more than 120 countries,

which also includes the 10 production facilities to meet the need of the local market.

R&D is both expensive and prolonged, entailing considerable uncertainty in the pharmaceutical

companies. The process of producing a commercial drug takes 8 to 10 years process from

discovery to final product. The companies incurred 95% of R&D expenditure, which for last

three financial years increased significantly with decrease in the sales. Jack Spratt has 20 years

research experience in Amazon jungles for naturally occurring medicines. Jack Spratt is a

believer as he spends 20 years with nothing significant, but still believes for major

breakthrough.

Jack Spratt faces a major decision which includes the pricing, allocation, and supply of the

medicine Sprattalin which cures the HIV virus. The assumptions that are made in resolving this

delimma are legal issues with international governments where that rare fungus has been
found. The competitors reaction to the news from the Jack Spratt, assuming that are aggressive

to find that fungus and try to copy that medicine as quickly as possible. The third assumption is

the research results of the medicine that there are no side-affects and it react to any stage of

the HIV virus.

Jack Spratt is the main person involves in this delimma, as this discovery has enormous social

and political consequences. He has to make the most important decision which might make the

government to control the destiny of the Sprattalin or the company. The other group is the AID

patients involve in this delimma, as there life depends in the discovery of Sprattalin. The

government is also under extreme pressure as the process takes 8 to 10 years to pass all the

legal issues. The resolution of this delimma is utilitarianism, as it will help Jack create the net

pleasure compared to net pain. Jack cannot able to make happy all the groups or people

involve or will affect with his decision. The costs of the drug will effect by the international law

as the fungus is found in international country. The patients will be most benefit from this

resolution as they will get the drug for this dangerous disease. The other parties will

significantly benefit are non-profit AID organization, and Mykno’s pharmaceutical Inc. (R&D

investment).