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Unformatted text preview: With eight years remaining before the patent expires, Vioxx represents $20 billion in potential sales that would be lost if the drug is pulled from the market. 2 Merck cannot afford to lose Vioxx as a future staple drug for the company as it appears that nothing else can pull the same weight in numbers that Vioxx potentially could. New products scheduled for release in the coming years lack the sales potential to compensate for the lost revenue following a Vioxx recall. The importance of Vioxx to Merck will grow in upcoming months, making the recall more and more drastic and disastrous for the company as a whole. 1 Arthur A. Thompson, “Merck and the Recall of Vioxx” (2004) 2 Aaron Smith, “Merck Shareholders Feeling the Pain of Plunging Stocks” (2005) <http://money.cnn.com/2005/06/30/news/fortune500/vioxx/index.htm>...
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This essay was uploaded on 04/07/2008 for the course BUAD 110 taught by Professor Kydd during the Fall '07 term at University of Delaware.
- Fall '07