Merck & Co. Inc.: communication lessons from the withdrawal of Vioxx

Abstract

Purpose

This paper examines communication strategies, organization, and tactics of the pharmaceutical firm Merck & Co., Inc., as corporate executives and staff faced the withdrawal from market of Vioxx, the company's most profitable product.

Design/methodology/approach

The paper explores decision methodology and criteria as Merck executives sought to communicate with their most important stakeholders during the most dangerous and critical period in the company's history.

Findings

As well prepared as Merck & Co. was for a product withdrawal, nothing could have prepared company officers for communicating on the scale, scope, and volume that this crisis would demand. The value of a well‐conceived crisis response plan is underscored, as well as a flexible, responsive organization. Among the more notable findings is that even large, well‐funded, experienced professionals may need to reconsider their organizational structure as they address a multi‐faceted, large‐scale problem. Issues include staffing, functional expertise, length of time on task, and strategic use of key resources.

Practical implications

A number of important lessons in communication strategy have emerged from the experience of withdrawing Vioxx from the market and defending the company against both litigation and continuing bad press. First, a crisis communication plan is essential. Their plan allowed Merck & Co. to identify key individuals to be involved, their roles and responsibilities. A second important lesson concerns persistence and a long‐term view, despite near‐term pressure for earnings performance. Overcoming plaintiffs‐bar litigation may take another five years. A third lesson involves identifying and measuring those issues which Merck stakeholders most needed to know in order to correct misconceptions. Finally, corporate officers recognized that they must have faith in their decisions and recognize the value of their employees (across the organization) in communicating the company's message.

Originality/value

This paper examines the pharmaceutical firm Merck & Co., Inc. and the withdrawal from market of Vioxx, the company's most profitable product.

Citation

O'Rourke, J.S. (2006), "Merck & Co. Inc.: communication lessons from the withdrawal of Vioxx", Journal of Business Strategy, Vol. 27 No. 4, pp. 11-22. https://doi.org/10.1108/02756660610677092