Executive Summary Merck & Company has been presented with an opportunity to invest $30 million for the purchasing rights of an obesity and high cholesterol lowering drug‚ KL-798 from Kappa Labs. Based on the expected probabilities of success through each product-development phase for this new drug‚ as well as the costs involved‚ the net present value of the project is -$1.16 million and is therefore recommended that Merck passes on the investment. Sensitivity analysis also show that adjusting
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Merck & Co.‚ Inc (A) (The summary is based on the article in Vol. I and does not include the extra readings given by the professor) This case is a classic example of enterprises trying to balance their business of increasing profits and expected social responsibilities. This dilemma is further accentuated when the company happens to be a pharma company whose decisions directly affect people’s lives. The Dilemma: A possible drug for River Blindness‚ a disease which affects almost 85 million
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Mergers and acquisitions (M&A) and corporate restructuring are a big part of the corporate finance world. Every day‚ Wall Street investment bankers arrange M&A transactions‚ which bring separate companies together to form larger ones. When they’re not creating big companies from smaller ones‚ corporate finance deals do the reverse and break up companies through spinoffs‚ carve-outs or tracking stocks. Not surprisingly‚ these actions often make the news. Deals can be worth hundreds of millions
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2.8 The World Wars The Age of Synergy began to consolidate the economic power in the hand of few with financial power led extension of geopolitical power to meet the financial investment needs of the political economy of capitalism.297 In his book “Imperialism‚ the Highest Stage of Capitalism” by Vladimir Lenin‚ describes the function of financial capital in generating profits from imperial colonialism‚ as the final stage of capitalist development to ensure greater profits. He describes that in order
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A Study of Mergers & Acquisitions in Aviation Industry in India and Their Impact on the Operating Performance and Shareholder Wealth Nisarg A Joshi Ahmedabad Institute of Technology Jay M Desai Ahmedabad Institute of Technology ABSTRACT The objective of this paper is to study‚ why organisations take the inorganic mode of expansion. However‚ the main focus is on studying the operating performance and shareholder value of acquiring companies and comparing their performance before and
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Merger Strategy-Growth‚ Synergy‚ Operating Synergy‚ Financial Synergy‚ Diversification‚ Other Economic Motives‚ Hubris Hypothesis of Takeovers‚ Other Motives‚ Tax Motives Growth – This is one of the most common motives for mergers. It may be cheaper and less risky for the acquiring company to merge with another provider in a similar line of business than to expand operations internally. It is also much faster to grow by acquisition than internally. Sometimes an organization may have a window
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Case #1: Merck and River Blindness MGT 597: Leadership Ethics Dr. Brandon Randolph-Seng Javiaur Harmon: Winter Mini 2014 - 2015 1. Think about the definition stakeholders—any parties with a stake in the organization’s actions or performance. Who are the stakeholders in this situation? How many can you list? On what basis would you rank them in importance? The stakeholders in this situation were the employees (research scientists doing the R&D)‚ Merck‚ and the target audience which
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Strategy: Synergy and Serendipity 1. The root of the word ”decide” is to “cut off” In our old Chinese says‚ “She De”‚ which means you can achieve after you gave up. To choose which to give up‚ which to pursue‚ it needs wisdom. 2. People often have trouble abandoning their previous behavior It’s so called - comfort zoom. Before I quit my job‚ came to Chicago for the MBA program‚ some of my colleagues doubted the benefits from this program may not cover my loss. I don’t really care about it‚ all
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Business and Professional Ethics MERCK AND THE MARKETING OF VIOXX – CASE ANALYSIS Questions 1) What are the highlights of the case? 2) What are the ethical issues in the case? 3) What the ethical theories evidenced in the case? 4) How would you resolve the problem? What are the ethical issues in the case? In identifying the issue(s) we first have to identify the level in which this business is operating. Merck & Company was a top‚ well respected pharmaceutical company in America
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The seventh habit in Stepen Covey’s book is synergy. I did not know what synergy was before I read this book. The only place I have heard of synergy was occasionally by Jack Donaghy on 30 Rock and I always assumed it was a strange corporate buzzword. After reading the book I have learned a lot about how this process can greatly improve teamwork and relationships. Covey (1998) does a great job summarizing this habit in the book‚ “Simply defined‚ it means that the whole is greater than the sum of
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