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THE MEDFIELD PHARMA CASE: FIRM VALUATION AND ETHICAL CONSIDERATIONS OF REFORMULATION
Understand that the Medfield case has 2 major problems: 1) Firm Valuation – Impact of Patent Loss and Reformulation; 2) Ethical Considerations – How to Ensure Patients and third-party payees are not hurt
Organize your paper around the case questions. Use them as an organizing devise. This will benefit you in several ways: 1) provide a framework for constructing your paper; 2) ensure I (your reader) understand exactly what question you are answering; and 3) ensure you answer every question.
Use examples from Pfizer, AstraZeneca and other firms in EXHIBIT 3 to substantiate your thought.
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Incremental Research
35
35
Incremental Special Marketing
25
25
25
25
25
Growth
2%
-50%
2%
2%
2%
2%
2%
2%
2%
2%
-50%
-50%
-50%
New Sales
214.77
Marginal Sales (New Sales – Original Sales
0.00
New Cost of Sales
49.40
Marginal Cost of Sales
0.00
New Direct Marketing
57.99
Old Direct Marketing
57.99
59.15
29.57
14.79
7.39
0
0
0
0
0
0
0
0
0
Marginal Direct Marketing
0.00
New G&A
8.59
Old G&A
8.59
8.76
4.38
2.19
1.10
0
0
0
0
0
0
0
0
0
Marginal G&A
0.00
Marginal Cash Flow pre Tax
(60.00)
29.52
14.76
7.38
Marginal NOPAT
(40.80)
20.07
10.04
5.02
NPV
ONLY ANSWER ONE OF THE QUESTION 7’S:
IF YOU SUPPORT REFORMULATION:
IF YOU ARE AGAINST REFORMULATION
7. Under what conditions might you be in favor of reformulation?
Your Turnitin Score needs to be 0-30% tops. Try to get it down there. If it is higher, I will read your paper, and see why the score is high but your grade will reflect the score.
REFERENCES MUST BE IN ALPHABETICAL ORDER. NAKED URLS ARE NOT ACCEPTABLE
APA conventions for citing and referencing:
https://owl.purdue.edu/owl/research_and_citation/apa_style/apa_formatting_and_style_guide/general_format.html//owl.purdue.
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