A Pharmaceutical Executive’s Dilemma: Balancing Competing Demands of People and Profits

Abstract

This case places the reader in the position of chief executive officer of a global pharmaceutical company facing a difficult decision. The scenario presented is reflective of an actual decision made by a global healthcare company based in the United States. The company’s research and development team believes it may have discovered the cure for a horrible illness afflicting millions of the world’s poorest people. The company’s leadership must make a decision to either pursue the drug, which future patients would be unable to pay for, or decline to pursue it based largely on economic grounds. The decision is further complicated by the company’s poor recent financial performance. The information provided in the case related to the company’s stock price performance is identical to what the company faced as it made this decision. In addition, the mission and core values provided in the case are closely based upon the company’s own. The company’s name and individuals’ names presented in the case are fictional.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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