Inadequate Business Research in the Term Paper

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Fortunately, in this instance, no patient was serious injured, although the patient had to have the device replaced, possibly causing trauma to the mental state of the individual. Still this particular failure on the part of the company is unlike some of the more problematic cases regarding drugs research and the company's decision to ignore potential medical complaints such as Merck's advertising of its painkiller Vioxx. Guidant said it was now investigating other instances of malfunction, including another possible injury, and no lawsuits were pending.

But Guidant has done a poor job assuring its users and buyers that this problem is under control, and limited to a few devices as it refused to answer questions directly from the media and merely issued press statements that do not explain what research was involved regarding the use, safety regulations, and information given to health care providers regarding the devices.

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As a result, Guidant's second-quarter profit dropped 15%, led by the costs of recalling and replacing its implanted defibrillators. Guidant has offered to pay for replacing or reprogramming the faulty devices and has anticipated taking a $113 million charge associated with the actions. (AP Wire, 2005)

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