1. SLE: Merck Socially Responsible
Decision Making
Low Income Patient Analysis
Group E: Daniela Afonso, Emilie
Gitlitz, Sajith Kaimal, Alison
Rybicki, Courtney Jo
Schoenbaechler, Sindhu Suresh,
Cassandra Walsh, John Walsh

2. HIV / AIDS in Low Income Economies
of those infected
live in developing
countries
Source: UNAIDS, “Report on global AIDS epidemic 2008” August 2008
Country Rank Adult HIV % Population (m) Per-capita GDP
Zimbabwe 1 28.3 12.5 $476.24
Botswana 2 26.1 1.7 $3,305.21
Swaziland 3 24.6 1 $1,350.62
Lesotho 4 23.6 1.9 $438.16
Zambia 5 15.7 10.2 $306.28
95%
treatment coverage
in developing and
transitional countries31%
United States - 0.6 279 $33,028.24

3. Demand & Pricing Strategy for ATRIPLA
Q = 227485 - 11.4 Price
Demand
802,922
Price
$75
Tier 1 Tier 2 Tier 3
Q = 74031 - 18.7 Price
Demand
62,586
Price
$613
Q = 227485 - 11.42 Price
Demand
110,248
Price
$10,284
● This proposal delivers an annual profit of $634,220,899 for Merck, despite providing
ATRIPLA at significant price reductions to Tier 1 and at break-even price for Tier 2 countries.

4. Stakeholder Priorities & Perspectives
Profits being made and although seemingly at a slower rate,
lowering price increases demand and overall profitability in
Tier 1 and 2 and profits are recouped in Tier 3
Profits being made and science is being used to save lives,
fulfilling mission and values. Lengthening lives may increase
future sales with individuals needing other drugs
Affordable medication keeps government aid costs low.
Longer lifetime possibly increases overall profit / patient
Likely have access to health insurance to help relieve the
high cost
Saving and improving the lives of patients in most need
Shareholders
Merck
Emerging
Econ. Gov’t
High Income
Patients
Low Income
Patients

5. Pricing Strategy Implications
Near-Term and Long-Term for Stakeholders
Long-TermShort-Term
PROS
• Save lives
• Decrease number of orphans
• Positive perception of Merck for
ethical strategy, charitable work
CONS
• Lack of infrastructure will be
challenging
• Manage potential for arbitrage
• Possible upset / loss of shareholders
PROS
• Reverse the trend of increasing
numbers of HIV infected people in
low income countries
• Infrastructure will be developed in
low income economies
• Patients live longer, use other Merck
drugs later in life
CONS
• Fewer HIV infected people will lead
to fewer requiring ATRIPLA drug,
lower profits in the long run

6. Conclusion
● Low Income Economy Recommended Pricing: $75
● Merck is following through on their company values and
their corporate responsibility commitment
● Saving lives and providing medication to those most in
need is the ultimate mission of Merck and their ATRIPLA
medication