Analysis on Merck

1289 words 6 pages
Analysis on Merck: Conflict and change

Merck is one of the biggest pharmaceutical companies in the world today. Although encountered with success, it still faces many problems today while trying to be the market leader competing against its competition. While being research and development driven company, Merck now has to go beyond R&D to stay competitive in the pharmaceutical industry. The main issue that seems to come up is that how far it can progress with the dual challenge of hitting peak annual financial performance while keeping the research pipeline full continued to weigh on senior management. Through the late 80s to early 90s, Merck was able to boast
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The formation of cross-functional group will improve Merck’s productivity and sales.
One more element that will be beneficial to Merck is the increase emphasis on external relationships and broadening new drug fields with other organizations. By forming a relationship with a generic drug maker, which have hurt Merck’s sales by creating similar drugs at a cheaper price, Merck would be able to receive some sort of payment from them. In order to do so Merck would first develop the drug, then before bringing it to market, approach a few generic drug makers about the drug and from there enter into an agreement for them to distribute a generic version with Merck receiving some of the royalties. This would benefit both the profitability of Merck as well as create new business relationships. Merck has entered the generic drug business developing a line of products and managing cared formularities. Merck collaborated with the Worldwide Licensing Group in 2000. Ray Gilmartin then integrated the group within MRL and appointed Dr. Ben Shapiro, a senior MRL employee, as head. In 2001, Merck once again acquired Rosetta Inpharmatics, a leading gene expression and biological analysis organization for $620 million dollars. This opportunity is a must for Merck because other competitors will look at ways to increase their performance and become the top pharmaceutical company in the world.


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