BM2212

Names Wyco, Ma. Clarissa Faith T. Section BSTM- BR601 Date

3/6/24

ACTIVITY
Merck
Merck, a major pharmaceutical manufacturer that liked to spread its bets across a range of research
directions and products, faced the most challenging decision of whether to invest primarily in one
research and development line or spread its investments in multiple lines of research.

Merck’s R&D strategy was to bring as many drugs to market as possible. Recently, the firm’s focus
shifted. Rather than developing a range of drugs, Merck has focused primarily on one drug, Keytruda, a
new cancer drug that leverages the patient’s immune system to fight cancer tumors. The drug is already
marketed to treat skin, bladder, and other cancers, but the firm is looking for even more uses.

Merck has expanded its oncology team, doctors who study and treat cancer, from 20 to 100 specialists.
The firm has over 700 clinical trials examining how Keytruda could treat more than 30 types of cancer.
Over half of Merck’s budget for clinical trials is aimed at Keytruda. Merck’s R&D head, Roger Perlmutter,
said to his staff that whatever other projects they are working on, they can stop now because they will
focus on Keytruda.

Not all clinical trials have produced positive outcomes. The drug did not appear to extend the survival of
gastric cancer patients. Still, the general news has been positive. Trials for kidney, brain, lung, and
esophageal cancers have shown positive results. The drug sales have been growing rapidly, making up 9
percent of Merck’s sales in 2017, and are projected to make up nearly 20 percent of the firm’s sales in
2019, $8 billion in sales for one drug alone. Even with its success, some wonder if Merck is investing too
heavily in this one patented drug

Answer the following questions: (4 items x 10 points)

1. Which between Milton Friedman’s and Archie Carroll’s views on business responsibility is being
demonstrated in the given case? Explain your chosen view.

 For the given situation or cases, we demonstrate and fix this problem for many
people Since there are over millions of individuals who have cancer and it's not an
arrangement and there's no remedy for others your body regularly, but you can't do
drugs here or think of an arrangement. Over millions of individuals can't survive cancer
and there's no remedy or for it, chemotherapy. More than 100 specialists have been
working to treat patients.

2. Who are the primary stakeholders of Merck based on the case study?

 Is how to instruct individuals with cancer and analyzing our strategy that aiming to do this
can be to work his ventures and share with his group inquire about and approximately the
pharmaceutical and R&D head staff.
3. Who are the secondary stakeholders of Merck based on the case study?

 The drugs that ought to be progressed and valuable on the advertise as much as
conceivable he tries to create the resistant framework of the individual; he looks at me
with kidney cancer or not rather like a tumor and other illnesses and medicines that
remedy it and I need to require it.

4. How do the stakeholders of Merck influence the strategic decisions of the company?

 To be growing satisfy the drug market sales making up a 9 percent of merck. They do
what he needs to work the company and on the off chance that the benefits are great and
there are numerous patients a part of partners who will come to see on the off chance
that your salary will come from individuals who are so inevitably there will be more
checkups and salaries that will come sooner