Question 4 .
The value of the NPV after the reformation is low due to the increase in the cost of conducting research and marketing. Medfield is expected to do a marketing campaign to ensure awareness and acceptance of the reformulated drug in the market.
Question 5 .
The financial benefit of a company refers to the profit made from the sale of products. The owners of the company, who are the stakeholders, reap the gain in the form of returns ( Kaushik, 2018) . Often, the benefits are shared based on the shares owned by each stakeholder.
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Question 6.
Financial costs are the losses incurred by the company. Usually, losses reduce the return earned by the stakeholders. Just as they enjoy the benefits, stakeholders bear the cost incurred by a firm.
Question 7 .
I would support the reformulation of Fleximat due to the effectiveness of the drug in treating pain and swelling. Reformulation would allow the company to continue providing the patients with the product thus achieving the goal of enhancing the wellbeing of the customers
8. Regarding making the reformulation more substantive by working faster and longer, the practice would be considered unethical because of alteration of the original composition through extra processing. AstraZeneca Company maintained the patented brand of Prilosec drug to produce Nexium.
Question 9 .
Midfield Company cannot manufacture other medicines at the expense of the obtained. Production of new drugs will be against the patent ethics that permits the modification of the original drug. For example, Pfizer was unethical for developing Xanax, which was different from Pfizer.
Question 10. Stakeholders
Shareholders of Medfield
Shareholders are the owners of the firm and have invested their fund in the company. Therefore, their most considerable interest is making financial returns from the operations of the entity. Shareholders wish the firm to continue operating hence earning higher returns.
Patients using the drug
Patients are the customers and are directly impacted by the drugs produced by the pharmaceutical through their consumption. The interest of the patients is on the medication that tends to ease the pain hence improving their wellbeing.
Third-party payers (Medicare, private insurance companies, etc.)
Third-party payees act on behalf of the patient on issues of medical payments. They are interested in is on the financial gain they make after providing the services. Usually, these parties are interested in patients who need health insurance.
Government
The government is interested in a company because of the taxes received and the GDP delivered (Pathak & Bhola, 2014. Medfield plays a significant role in the American economy with the sale of Fleximat drugs. The government is also interested in the compliance of the company on the set rules and regulations.
Employees of Medfield
The fundamental interests for the workers in the pharmaceutical are the income and job security. Merging or acquisition of the company may result in their dismissal, thus being jobless. They need the company to continue for them to continue enjoying the income to sustain themselves.
Physicians
Physicians are the suppliers of the drugs to the patients from the pharmaceutical. Their stake in Midfield is the revenue and the safety of their business through the availability of the products. They need the drug to continue enjoying the income from the sales.
Question 11 .
During the reformation of a drug, companies should ensure that they maintain the originality of the previous drug. Alteration of the formation and composition is against patent ethics. Again, they should ensure utmost patient safety through the provision of safe and quality medication.
Question 12 .
B. Johnson should initiate both the reformulation and the takeover. Modifying the drug will help it keep the customers. Again, the offer is higher than the actual present value of the firm hence giving the firm a higher value.
References
Kaushik, S. K. V. (2018). Innovative Business Management Using TRIZ: TRIZ for Non-Manufacturing Professionals . ASQ Quality Press.
Pathak, G., & Bhola, S. S. (2014). Stakeholders in Pharmaceutical Business. ZENITH International Journal of Multidisciplinary Research , 4 (3).
