Q9 · UPSC Civil Services Mains 2015 · GS IV · 20 marks · 4 min read

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Case study. One of the scientists working in the R & D laboratory of a major pharmaceutical company discovers that one of the company's best selling veterinary drugs, B has the potential to cure a currently incurable liver disease that is prevalent in tribal areas. However, developing a variant of the drug suitable for human beings entailed a lot of research and development having a huge expenditure to the extent of f 50 crores. It was unlikely that the company would recover the costs as the disease was rampant only in poverty-stricken area having very little market otherwise. If you were the CEO, then- (a) identify the various actions that you could take; (b) evaluate the pros and cons of each of your actions.

Topic: Ethics Case Studies. Syllabus: Case Studies on above issues. Same official PYQ from year-wise 2015 and Ethics Case Studies.

Revision summary

A possible human cure for a tribal liver disease has little market; Rs 50 crore R&D may not be recovered. Stakeholders include patients, the scientist, workers and owners. Suppressing the finding is unethical; unaided spend that sinks the firm is imprudent. The sound path is partnership with government, public science and philanthropy, with a binding access clause. If partners fail, publish for public labs rather than bury the lead or sell it to be shelved.

Model answer

Copper italics in this answer — like this — are the key facts. Each one is unpacked in the Facts & figures rail.

Introduction

A laboratory accident of good news meets a profit-and-loss sheet. Tribal patients have a disease the market will not pay to cure. As CEO I still hold duties to workers, owners, regulators and those patients.

Body

Stakeholders

  • Tribal patients with the incurable liver disease, who have almost no purchasing power.
  • The scientist who found the lead, and the R&D team.
  • Shareholders, lenders and the workforce whose wages depend on a going concern.
  • Existing veterinary customers who use drug B.
  • The State, ICMR-type public research, and possible public-private partners.
  • You as CEO: profit is a duty, not a licence to ignore a preventable death.

Values and issues

  • Beneficence and justice: a molecule that could save the poorest should not die only because they are poor.
  • Fiduciary duty to the company: Rs 50 crore is not play money if it bankrupts the firm and throws out jobs.
  • Transparency: do not hide the finding to protect the veterinary cash cow.
  • Intellectual property: a patent can be a tool for partnership, not only a wall.

(a) and (b) Actions with pros and cons

  • Option 1: Suppress the finding and continue selling veterinary B only.
  • Merit: protects current profit and avoids a Rs 50 crore risk.
  • Demerit: conceals a possible human therapy; ethically a betrayal of the scientist’s discovery and of patients. If the fact leaks, reputational ruin.
  • Option 2: Fund the full human R&D from company cash alone and price the drug for a tribal market that cannot pay.
  • Merit: maximum moral clarity if the science works.
  • Demerit: may sink the firm, halt other useful drugs, and still fail if trials are negative. Heroism that destroys the company helps nobody in year three.
  • Option 3: Open a structured partnership: licence or co-develop with government, ICMR, WHO-type programmes, a philanthropic foundation, or a larger firm, with a clear access clause for tribal patients (at-cost or free).
  • Merit: shares cost and risk; uses public duty where the market is absent; keeps the company solvent; scientist stays engaged.
  • Demerit: slower negotiations; partners may demand control; some profit is given up. Still the least bad mix of justice and prudence.
  • Option 4: Ask the State for an advance market commitment, tax incentive, or orphan-disease style grant, while publishing the lead so that others may also try.
  • Merit: honest science; public money for a public need; aligns with the National Health Mission logic of serving the poor.
  • Demerit: political delay; competitors may free-ride. Free-riding is acceptable if patients live.
  • Option 5: Sell the molecule outright to the highest bidder with no access condition.
  • Merit: immediate cash, perhaps more than Rs 50 crore.
  • Demerit: the buyer may shelf it (a veterinary rival) or price it as a luxury. Patients remain untreated. I would not choose this without a binding access covenant.
  • Option 6: Create a not-for-profit subsidiary or patent pool for the human variant, keeping veterinary B as the commercial engine.
  • Merit: ring-fences risk; states a public purpose; staff can see the firm’s character.
  • Demerit: governance complexity; still needs external money.

What I would do

  • Do not suppress. Thank the scientist, protect the data, and take the finding to the board as a duty item, not as a hobby.
  • Seek co-development and public or philanthropic finance first; put tribal access in the contract.
  • Keep veterinary production ethical and separate: do not raise animal-drug prices to secretly fund a vanity project without disclosure.
  • If every partner refuses and the firm cannot bear Rs 50 crore, publish enough for public laboratories to try, rather than bury the light.
  • Measure success as patients on a safe therapy, not as a press conference.

Flow diagram

flowchart TD
  FIND[Veterinary B human lead] --> NO[Do not suppress]
  NO --> PART[Public private philanthropic co-develop]
  PART --> ACC[Access for tribal patients]
  SOLO[Solo Rs 50 crore] --> RISK[Firm failure risk]
  SELL[Sell with no covenant] --> SHELF[Shelf or luxury price]

Conclusion

The market will not pull a tribal liver cure by itself. Suppressing the lead is the worst act. Solo bankruptcy is not required. As CEO I would partner, bind access, and if need be give the science to the public system — profit as a going concern, not as a veto on the poor.

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  1. 2016 · Q11 · GS IV · 20 marks

    Case study. A fresh engineering graduate gets a job in a prestigious chemical industry. She likes the work. The salary is also good. However, after a few months she accidentally discovers that a highly toxic waste is being secretly discharged into a river nearby. This is causing health problems to the villagers downstream who depend on the river for their water needs. She is perturbed and mentions her concern to her colleagues who have been with the company for longer periods. They advise her to keep quite as anyone who mentions the topic is summarily dismissed. She cannot risk losing her job as she is the sole beard-winner for her family and has to support her ailing parents and siblings. At first, she thinks that if her seniors are keeping quiet, why should she stick out her neck. But her conscience pricks her to do something to save the river and the people who depend upon it. At heart she feels that the advice of silence given by her friends is not correct though she cannot give reasons for it. She thinks you are a wise person and seeks your advice. (a) What arguments can you advance to show her that keeping quiet is not morally right? (b) What course of action would you advice her to adopt and why?

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