Designed for use with Merck & Co., Inc. (A), (B), (C), and (D).

"Researchers at Merck & Co. believe that a drug they had developed for animals might be an effective treatment for human river blindness, a debilitating illness that affects hundreds of thousands of poor people in the Third World. The process of development and testing, however, will be enormously costly. Should the company devote critical resources to developing the drug, knowing that, even if it were medically successful, it would yield little financial return? The case presents background on economic and scientific constraints that shape the pharmaceutical industry. Provides a framework for discussing ethical aspects of product innovation, and the risks and benefits of investments in research. Teaching Purpose: May be used in Strategic Management, Business and Society, and Ethics courses to help students explore: 1) the relationship between corporate culture and strategy; 2) the special societal role of companies whose products are essential to human life and health; and 3) the complexity of "doing good" in the real world."