Page 535 - The Case Lab Book

The electronic version of the case study and teaching guide adds a further
dimension to case teaching. Unlike the paper based case study the

electronic version allows suggestions and pointers to be embedded in the
e-case. Likewise, the teaching guide attempts to show how theory and
practice can be married to provide a rounder appreciation of what is going

on and how their combination can provide a more comprehensive answer
to the questions posed.

Case Rationale

This case study Phissons: An Ethical Dilemma is a teaching case based
upon a 1980’s British company which faced a similar dilemma.

The response by the CEO was to call an extraordinary special meeting,
before the launch, of the shareholders and to invite the press. The CEO
spoke for a short period and essentially said he was withdrawing the drug.
When questioned why he was withdrawing it he simply said that he had
children himself and would not be responsible for killing children.

The expected fallout should have been a share price collapse. However, in
the days that followed the meeting the companies’ share rose – it was seen
as one of the first ethical companies and as a result investors (institutional)
wanted to be associated with it.

As an aside to the withdrawal, the company had developed the spin haler
delivery system for the drug this development went on to attain massive
sales as it could be used for other drugs produced by other companies.

Phissons is about Blackthorn and his ethical stance. His is a moral dilemma
and as CEO he is ultimately the one who must make the decision on
whether to launch or not.