The Merck
management was slow to react to the crisis which was growing to significant
proportions. That Vioxx presented increased risk of cardiovascular diseases was
apparent from earlier studies. Yet the management had decided to ignore these
research findings in favor of continuing their direct to consumer marketing. As
a result of this marketing campaign, the drug became an industry blockbuster
generating a massive cash flow for the company. Therefore it became the most
important factor in the company’s bottom line. As a result, by the time the
management decided to recall the drug, the result was extremely harmful to the
profitability of the company. ….         Â
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