Case #44 | Business & Finance homework help
THE MEDFIELD PHARMA CASE: FIRM VALUATION AND ETHICAL CONSIDERATIONS OF REFORMULATION
Understand that the Medfield plight has 2 senior problems: 1) Firm Valuation – Impact of Patent Loss and Reformulation; 2) Incorporeal Considerations – How to Determine Patients and third-party payees are not hurt
Organize your tract encircling the plight inquirys, use them as an organizing show. This obtain avail you in divers ways: 1) cater a framework for constructing your tract; 2) determine I (your peruseer) discern correspondently what inquiry you are rejoindering; and 3) determine you rejoinder entire inquiry.
Use examples from Pfizer, AstraZeneca and other firms in EXHIBIT 3 to stay your cogitation.
What is the vulgar prize of Medfield as a fraternity? Use the demonstrate 4 spreadsheet to reckon the NPV of Medfield. Compare this product to the present charge and cater your forced for the distinction.
If we observe the sale of Medfield as the sale of strong goods how does the extraction of R&D, cannonade in coming goods, qualify the valuation of Medfield? (Using the demonstrate 4 spreadsheet discern between the NPV prize of strong products and R&D)
What is the prize that would be created by a reformulation? Complete and illustrate the table adown.
2011 2012 2013 2014 2015 2016 2017 2018 2019
2020 2021 2022
Incremental Research 35 35
Incremental Special Marketing 25 25 25 25 25
Growth 2% -50% 2% 2% 2% 2% 2% 2%
2% 2% -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
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
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
What factors illustrate the prize created from the reformulation for Fleximat?
Who reaps the financial avails?
Who bears the financial costs?
ONLY ANSWER ONE OF THE QUESTION 7’S:
IF YOU SUPPORT REFORMULATION:
What basis would qualify your liking and inducement you to confide across reformulation?
IF YOU ARE AGAINST REFORMULATION
7. Under what stipulations energy you be in gift of reformulation?
How would you qualify your thinking if Medfield’s reformulation approximation were over palpable (e.g. offal works faster, works longer) than cosmetic?
Could Medfield use the extra prize created by the reformulation to beget new and advantageous products?
When you observe Medfield’s stakeholders, what are the key issues. Choose three from the subjoined schedule and argue the key issues.
Shareholders of Medfield
Patients using the offal
Third-party payees (Medicare, individual insurance companies, etc.)
Employees of Medfield
What incorporeal issues insufficiency to be observeed in making a reformulation conclusion? Which are over importunate? Reference the ethics concepts argueed antecedent in the semester, include at last one of the Right vs. Wrong explanations presented: Consequences, Duty, or Virtues. Use palpable references sources to stay your argueion of the incorporeal issues.
What should Susan Johnson do? Explain your valuable of a, b, c, or d. If you sanction another approximation, argue it close.
Don’t track the reformulation, but sanction takeover present
Initiate the reformulation and sanction the present
Refuse the present but arise reformulation
Refuse the present and not reformulate
Your Turnitin Account insufficiencys to be 0-30% tops. Try to get it down there. If it is conspicuous, I obtain peruse your tract, and see why the account is noble but your grade obtain exhibit the account.
REFERENCES MUST BE IN ALPHABETICAL ORDER. NAKED URLS ARE NOT ACCEPTABLE