Vioxx: Too Risky for Merck?

Authors: Petersen, Mitchell A.; Singhal, Rashmi
Source: Stanford University
Year: 2007
Number of pages: 23

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Abstract:

Once a decision has turned out poorly-such as Merck's decision to launch and support the painkiller Vioxx-it is easy to criticize. However, are these bad outcomes the result of a good decision which turned out unlucky, or are they decisions where the bad outcome could have been predicted? This case follows Merck's pharmaceutical product Vioxx from initial development to launch and subsequent withdrawal, and considers the decisions made at each stage by the Merck executives involved. The case concludes by examining the financial impact of the Vioxx withdrawal on the company and on the Merck stock value.