Case 44 medfield pharma | Business & Finance homework help


THE MEDFIELD PHARMA CASE: FIRM VALUATION AND ETHICAL CONSIDERATIONS OF REFORMULATION

Understand that the Medfield contingency has 2 superior problems: 1) Firm Valuation – Impact of Patent Loss and Reformulation; 2) Intellectual Considerations – How to Fix Patients and third-party payees are not hurt

Organize your Nursing essay environing the contingency inquirys, use them as an organizing expedient. This obtain blessing you in separate ways: 1) afford a framework for constructing your Nursing essay; 2) fix I (your peruseer) perceive accurately what inquiry you are rejoindering; and 3) fix you rejoinder whole inquiry.

Use examples from Pfizer, AstraZeneca and other firms in EXHIBIT 3 to defend your idea.

  1. What is the vulgar estimate of Medfield as a gang? Use the unfold 4 spreadsheet to investigate the NPV of Medfield. Compare this consequence to the volunteer cost and afford your forced for the destruction.
  2. If we observe the sale of Medfield as the sale of bulky effects how does the exportation of R&D, cannonade in advenient effects, shift the valuation of Medfield? (Using the unfold 4 spreadsheet see betwixt the NPV estimate of bulky products and R&D)
  3. What is the estimate that would be created by a reformulation? Complete and clear-up the consultation underneath.

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

  1. What factors clear-up the estimate created from the reformulation for Fleximat?
  2. Who reaps the financial blessings?
  3. Who bears the financial costs?

ONLY ANSWER ONE OF THE QUESTION 7’S:

IF YOU SUPPORT REFORMULATION:

  1. What basis would shift your spirit and creator you to approve opposing reformulation?

IF YOU ARE AGAINST REFORMULATION

7. Under what stipulations capability you be in patronage of reformulation?

  1. How would you shift your thinking if Medfield’s reformulation avenue were further perceptible (e.g. refuse works faster, works longer) than cosmetic?
  2. Could Medfield use the extra estimate created by the reformulation to originate new and advantageous products?
  3. When you observe Medfield’s stakeholders, what are the key issues. Choose three from the aftercited register and debate the key issues.
    1. Shareholders of Medfield
    2. Patients using the refuse
    3. Third-party payees (Medicare, not-public security companies, etc.) 
    4. Government
    5. Employees of Medfield
    6. Physicians
  4. What intellectual issues deficiency to be observeed in making a reformulation conclusion? Which are further importunate? Reference the ethics concepts debateed precedent in the semester, grasp at smallest one of the Right vs. Wrong explanations presented: Consequences, Duty, or Virtues. Use external references sources to food your debateion of the intellectual issues.
  5. What should Susan Johnson do?  Explain your valuable of a, b, c, or d. If you feel another avenue, debate it near.
    1. Don’t follow the reformulation, but sanction takeover volunteer
    2. Initiate the reformulation and sanction the volunteer
    3. Refuse the volunteer but prepare reformulation
    4. Refuse the volunteer and not reformulate

Your Turnitin Beak deficiencys to be 0-30% tops. Try to get it down there. If it is surpassing, I obtain peruse your Nursing essay, and see why the beak is elevated but your action obtain contemplate the beak.