Case #44 | Business & Finance homework help


Understand that the Medfield case has 2 major problems: 1) Firm Valuation – Impact of Patent Loss and Reformulation; 2) Ethical Considerations – How to Ensure Patients and third-party payees are not hurt

Organize your paper around the case questions, use them as an organizing device. This will benefit you in several ways: 1) provide a framework for constructing your paper; 2) ensure I (your reader) understand exactly what question you are answering; and 3) ensure you answer every question.

Use examples from Pfizer, AstraZeneca and other firms in EXHIBIT 3 to substantiate your thought.

What is the current value of Medfield as a company? Use the exhibit 4 spreadsheet to calculate the NPV of Medfield. Compare this result to the offer price and provide your reasoning for the difference.

If we consider the sale of Medfield as the sale of existing assets how does the elimination of R&D, investment in future assets, change the valuation of Medfield? (Using the exhibit 4 spreadsheet distinguish between the NPV value of existing products and R&D)

What is the value that would be created by a reformulation? Complete and explain the table below.

2011 2012 2013 2014 2015 2016 2017 2018 2019

2020 2021 2022

2023 2024

Incremental Research 35 35

Incremental Special Marketing 25 25 25 25 25

Growth 2% -50% 2% 2% 2% 2% 2% 2%

2% 2% -50%

-50% -50%

New Sales 214.77

Marginal Sales (New Sales – Original Sales 0.00

New Cost of Sales 49.40

Marginal Cost of Sales 0.00

New Direct Marketing 57.99

Old Direct Marketing 57.99 59.15 29.57 14.79 7.39 0 0 0 0

0 0 0

0 0

Marginal Direct Marketing 0.00

New G&A 8.59

Old G&A 8.59 8.76 4.38 2.19 1.10 0 0 0 0

0 0 0

0 0

Marginal G&A 0.00

Marginal Cash Flow pre Tax (60.00) 29.52 14.76 7.38 

Marginal NOPAT (40.80) 20.07 10.04 5.02 


What factors explain the value created from the reformulation for Fleximat?

Who reaps the financial benefits?

Who bears the financial costs?



What facts would change your mind and cause you to recommend against reformulation?


7. Under what conditions might you be in favor of reformulation?

How would you change your thinking if Medfield’s reformulation approach were more substantive (e.g. drug works faster, works longer) than cosmetic?

Could Medfield use the extra value created by the reformulation to generate new and helpful products?

When you consider Medfield’s stakeholders, what are the key issues. Choose three from the following list and discuss the key issues.

Shareholders of Medfield

Patients using the drug

Third-party payees (Medicare, private insurance companies, etc.) 


Employees of Medfield


What ethical issues need to be considered in making a reformulation decision? Which are more pressing? Reference the ethics concepts discussed earlier in the semester, include at least one of the Right vs. Wrong explanations presented: Consequences, Duty, or Virtues. Use external references sources to support your discussion of the ethical issues.

What should Susan Johnson do?  Explain your choice of a, b, c, or d. If you have another approach, discuss it here.

Don’t pursue the reformulation, but accept takeover offer

Initiate the reformulation and accept the offer

Refuse the offer but initiate reformulation

Refuse the offer and not reformulate

Your Turnitin Score needs to be 0-30% tops. Try to get it down there. If it is higher, I will read your paper, and see why the score is high but your grade will reflect the score. 


Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more