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What does the company do? Medfield Pharmaceuticals is a drugs manufacturer with total domestic (US) revenue of $ 329 million in 2009. The company is explicitly focused on the end goal of end’s patient health, as it is mentioned by its slogan: “We Bring Wellness”. The company manufactured and sold three primary drugs, two were for pain management and one for auto-immune diseases. The company also had manufactured another pain management drug of which had been approved by FDA and was ready for distribution. Drugs Medfield Pharmaceuticals manufactured and sold were: • Fleximat, company’s leading seller that is responsible for 64% of its revenue, is a monoclonal antibody used to treat patients with ulcerative colitis, rheumatoid arthritis, and Crohn’s disease, an going disorder that caused inflammation of the digestive tract. The patent for this drug was due to go off in two years from 2009. • Lodamadal was an extended-release tablet for once daily treatment of moderate to severe pain in patients requiring continuous opioid therapy for an extended period of time. This drug was accounted for 12% of revenue. • Orsamorph was a morphine sulfate sustained-release tablet designed to treat intense pain. This drug contributed fir 24% of company’s revenue. It had eight years of patent life left. • Reximet was used to treat acute migraines. However, the company would begin selling this drug in 2012. Industry Background Pharmaceutical industry used to be a powerhouse industry with revenue of billions dollar. 1995 through 2002 was the hey-day period of pharmaceutical industry. In this period, profitability for the pharmaceutical companies was three times more than profitability of the median of all Fortune 500 companies in 2004. However ... ... middle of paper ... ...this action will like come at huge cost, considering a few years ago there was a lawsuit against a drug manufacturer that reformulate its product at the end of it patent life. Even though court held the complaints to be void, the case came under public scrutiny at that time. Takeover offer In 2011, Medfield received an offer to buy the company for $750 million. Given the current state of the company, Susan Johnson, company’s CEO realized that this was a great the opportunity for her to exit the business. She understands that a company with two products, which have substantial patent life left and one product to be sold will attract many buyers. When she first started the company, she focused on developing medicines to make lives better. However, she had to put aside her own cares in evaluating company’s current value in regard to $750 million takeover offer.
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