Crystal D. King
BUSN310 – International Legal and Ethical Issues in Business Unit 4 Individual Project
March 6, 2011
Antitrust laws were primarily created to put an end to businesses that got too large from blocking competition and abusing their power. Choices offered to consumers can be limited by mergers and monopolies because smaller businesses are not usually able to compete in the marketplace. Even though free and open competition between businesses can guarantee lower prices and new and better products, it is also likely to considerably limit the market diversity. The following paper will discuss how mergers and acquisitions have affected the way in which companies do business.
Business Ethics and Legal Issues
The federal antitrust enforcers are investigating whether a multinational pharmaceutical company with two firms, one in the United States and one in Brazil, has attempted to diminish the impact of generic competition to one of its most profitable prescription drugs, Celexa. This anti-depressant drug is the company’s best seller, with sales last year of $2.11 billion, representing a 22% increase from the year before (AIU, 2010). Both firms have done well with this new anti-depressant on the market and have been able to maintain the price but now that the economy has dropped significantly it has become more and more difficult. Customers have complained that the price for the anti-depressant has become too expensive to continue using and are eager for a generic drug to come out that would be more affordable. In Brazil, the firm is losing a lot of their customers because they cannot afford to continue being on the medication and other generic anti-depressants that serve the same purpose are surpassing Celexa. In the United States, the firm is struggling with the same issue. It seems the multinational pharmaceutical company is delaying the production and introduction of a...