-
Essay / A Case Study of Merck Case - 2243
Stakeholders: The main stakeholders in this case would be the patients who took Vioxx. They are market participants because they make a transaction to buy Vioxx. Patients have both economic and legal power. Economic power because they can choose whether or not to engage in an economic transaction with the company and legal power because they can sue the company for damages. Patients can form coalitions with attorneys and sue Merck in class actions. This would speed up the process, because it would not be about individual cases but a single case. The FDA is a market participant because it entered into an economic transaction with Merck. Merck had to pay a “user fee” to the FDA to review Vioxx. The FDA has economic power because it can refuse to test new drugs created by Merck. They also have legal and political power because they have the ability to file lawsuits with the help of the Department of Justice and create new regulations. The coalitions the FDA can form may consist of plaintiffs and lawyers discussing strategies to defeat Merck in court.