In December 2006, Pfizer announced the halt of the Torcetrapib clinical trial, a once very
promising drug in the fight against coronary artery and heart disease. At the same time, Pfizer
announced its initial plans of layoffs and cost reductions would be expedited as a result of the
trials. With the loss of patent protections for a series of drugs including Lipitor, the cancellation
of Bextra, and the black label warning on Celebrex tablets, how does Pfizer seek continued
success while appeasing shareholders? 9 pp. Case #07-01. (2007)

As the United States reeled from terrorist attacks in the days following September 11, 2001, the
threat of bio-terrorism emerged in the form of Anthrax. Envelopes containing the biological
weapon began to appear in Washington, New York, and Florida. Bayer CEO Manfred Schneider
soon found his company in an unusual position. The company’s drug, Cipro, was the only
FDA-approved medication for the treatment of Anthrax. Bayer was in the international spotlight
as the press, public, and politicians began to debate whether Bayer could provide enough of the
drug to keep the U.S. population safe, and whether the company’s patent should be rescinded to
allow for generic production. Dr. Schneider must decide how to extinguish doubts without losing
his most profitable product. 12 pp. Case #02-03. (2002)

Bayer responds to concerns about Phenlypropanolamine (PPA) found in its key brand,
Alka-Seltzer Plus, by co-sponsoring a study to assess the safety of the ingredient. The study finds
that PPA does carry a risk, and the Federal Drug Administration requests a voluntary recall.
Bayer must confront the media’s distorted interpretation of the recall before it taints the
reputation of Alka-Seltzer Plus and other important Bayer brands. As it enters the peak season
for flu and cold medications, Bayer must also decide how to respond to a recall as it faces losses
from promotional campaigns and sales, as well as a loss in consumer confidence. 14 pp. Case
#01-13. (2001)

On March 3, 2006, Bausch & Lomb received a phone call from New Jersey ophthalmologist Dr. David S.
Chu regarding three patients afflicted with a serious fungal condition known as fusarium keratitus. These
patients all were contact-lens wearers, and had used Bausch & Lomb’s ReNu with MoistureLoc lens
solution. This telephone call started a chain of events, accusations, and CDC investigations that
eventually led to a recall by Bausch & Lomb in the U.S. and overseas, but not before the crisis had
threatened to damage not only sales of its popular lens solution, but also Bausch & Lomb’s reputation.
18 pp. Case #06-16. (2006)