Mercks U.S. Managed Distribution Program for the HIV Drug Crixivan Harvard Case Solution & Analysis

Pharmaceutical company Merck created a U.S. managed distributed teams to deal with a unique problem. In March 1996, the Food and Drug Administration (FDA) approved a new drug application for Merck's Crixivan, a new antiviral drug to fight the acquired immunodeficiency syndrome (AIDS). Following the positive early data from clinical trials, the huge medical need for new human immunodeficiency virus (HIV) treatment, and AIDS activists demand to make new drugs available as quickly as possible, FDA approved the use of Merck in the record setting 42 days from the date of filing. Since the means of production, Merck will not be ready to produce drugs at full power for at least six months, a small business, development immediately deliver Crixivan, an estimated 25,000 to 30,000 patients. Propelled by the need to make quick Crixivan available, but are concerned about ensuring a continuous supply of the individual patient, so that the immune resistance to the drug will not be developed as a result of inadequate doses, the team grappled with the question of how to distribute the drugs in short supply. The worst thing would be to start patients on therapy only to stop treatment because Merck could not continue to supply drugs. This situation was the setting for the emergence of viral resistance, which will be contributing significantly to the AIDS epidemic. After much deliberation, the spread of the U.S. team decided to have: (1) to abandon the traditional distribution channels, and (2) to control the distribution of a single source, and (3) monitor all patients starting therapy with Crixivan. The team met to review the progress and success of the plan. "Hide
by Margaret L. Eaton, Madhi Roy, Marco Curavic Source: Stanford Graduate School of Business 25 pages. Publication Date: April 1, 2004. Prod. #: BME9-PDF-ENG

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