Conduct a break-even analysis for the drug Gardasil (a Merck vaccine). Calculate the number of...
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Conduct a break-even analysis for the drug Gardasil (a Merck vaccine). Calculate the number of years it takes for Merck to recoup its investment in a vaccine such as Gardasil based on the following information:
R&D Expenditures for typical drug: $1 billion
Marketing expenditures to launch: $100 million
Failure rate of R&D projects: 80%
Price of vaccine: $120 per unit
Cost of Goods Sold: $4.50 per unit
Projected annual sales: $1.8 billion per year
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