Page 6 - CIMA SCS Workbook November 2018 - Day 2 Suggested Solutions

SUGGESTED SOLUTIONS

even if a new drug can be successfully brought to market. Whilst all who contract the disease
would undoubtedly argue otherwise, it must be questioned exactly how much need there is for
NX1.

Our research scientist has stated that the new compound can possibly address “most of the
serious symptoms” of Algernon’s Disease; this would suggest that NX1 would not actually be a
cure, rather it would ease some of the debilitating effects. It is therefore plausible that, despite
taking NX1, patients still suffer a serious illness and are not fully cured.

Finally, thought must be given to how Novak shareholders are likely to react. The company has
reported falling profits and sales in the last financial year, and the general trend for its share price
is down by one third over the last 5 years. Now may not be the best time to announce investment
in an area that is unlikely to generate any immediate financial return.

Preliminary conclusion

The research scientist should be asked to put together a full evaluation of the likely costs of
investing in NX1, together with more details on projected demand. The Research Committee will
then be able to make a more informed decision using both financial and non-financial criteria.

Activist threats

There are four possible strategies (or philosophies) that Novak can adopt with regards to all
accusations of unethical behaviour, as follows:

Reaction

This approach would lead Novak to deny any responsibility for social issues, arguing that it is not
wrong in its actions or required to change its behaviour.

The basis of the company’s argument is that its primary function is to advance medical science, as
this results in benefits to human beings. It is not concerned with how such advances are to be
made; it must simply act within the law.

This is likely to provoke significant reaction from the activists, and could lead to an increased level
of protest against the company and threats against its staff. There is no acknowledgement of the
concerns about animal welfare, and so this strategy is not recommended.

Defence

Under this form of response Novak would admit that it tests some of its drugs on animals, but
would find justifications for doing so. There has always been an ethical dilemma between the
interests of human beings and other animals; activists would argue that it is unethical to ignore
the latter in pursuit of the former, and that animal testing is cruel and leads to unnecessary
suffering in the name of profit. Novak would argue an alternative position, namely that it is
impossible to gain the increase in scientific knowledge without testing on animals, and thus any
suffering is justified in looking to achieve the greater good.

In summary, Novak would admit to the activists’ concerns but refuse to change its behaviour.

KAPLAN PUBLISHING 67