Title: Merck

Essay Details

Subject: Business
Author:
Date: April 9, 2015
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Grade: B
Length: 11 / 3181
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Essay text:

The only way to recover the loss caused by patents' expiration was to develop new drugs and refresh the company's portfolio. LAB Pharmaceuticals, who specializes in developing compounds for treatment of neurological disorders, offered Merck to license a new developing drug, Davanrik, which had functions to treat depression, obesity or both...

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At the time of the offer, Davanrik was in pre-clinical development, which would need to pass the three-phase clinical tests approved by the FDA. Testing would last seven years, which would appear to be high failure and costly. Under the licensing agreement, Merck would be responsible for the approval of Davanrik from the FDA, its manufacturing, and its marketing...

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