Merck & Company: Product Kl-798

4 Pages Posted: 21 Oct 2008

See all articles by Sherwood C. Frey

Sherwood C. Frey

University of Virginia - Darden School of Business

Samuel E. Bodily

University of Virginia - Darden School of Business

Abstract

Merck has been approached by a small biotech research firm with the proposal that Merck buy the rights to a new drug that promises to treat obesity and lower cholesterol. The drug is in the middle of phase I of the FDA approval process. Pat Harlow, the chief licensing officer, has been leading Merck's investigation team. A meeting is scheduled for tomorrow at which Merck's response to the offer will be drafted.

Excerpt

UVA-QA-0582

Rev. Jun. 14, 2016

Merck & Company: Product KL-798

Pat Harlow, chief licensing officer, was preparing for the next meeting of the KL-798 project team. KL-798 was a new drug developed by Kappa Labs with the promise of treating obesity and, as a possible side benefit, lowering elevated cholesterol levels, a condition that often accompanied obesity. Merck had been approached by Kappa Labs, a small biotech research firm, with the proposal that Merck buy the rights to KL-798 for an upfront payment of $ 30million and royalty payments over the first 10 years of the product's market life.

Even though KL-798 was only partially through Phase I trials and a long way from commercialization, it had attracted considerable interest among Merck scientists. It represented an exciting direction for the development of other drug products; it might simultaneously address two medical conditions faced by a substantial and growing portion of the world's population; and it would provide an important new product for the research pipeline.

At its next meeting, the project team would have to develop its response to Kappa Labs. As team leader, Harlow would be expected to guide the discussion and shape the response. Harlow turned her attention to preparing for the meeting.

. . .

Keywords: decision analysis, leadership, risk management

Suggested Citation

Frey, Sherwood C. and Bodily, Samuel E., Merck & Company: Product Kl-798. Darden Case No. UVA-QA-0582. Available at SSRN: https://ssrn.com/abstract=912014

Sherwood C. Frey (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/frey.htm

Samuel E. Bodily

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4813 (Phone)
434-293-7677 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/bodily.htm

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