Mains Practice Questions

Case Study:

You are the Managing Director of "XYZ Biotech", a rapidly growing pharmaceutical firm based in India, with operations in several developing countries. Your company has recently developed a breakthrough mRNA-based vaccine for a rapidly mutating tropical disease affecting large sections of the population in Sub-Saharan Africa and parts of South Asia.

The vaccine has demonstrated 94% efficacy in Phase III clinical trials and has the potential to save thousands of lives. However, the vaccine is expensive to manufacture, requiring specialized cold-chain storage, and proprietary biotechnology inputs licensed from international partners. The pricing strategy proposed by your Board is to recoup R&D investments and generate profit by pricing the vaccine at Rs. 3000 per dose, which makes it unaffordable for many low-income populations in target regions.

Meanwhile, several NGOs, global health organizations, and even a few governments are urging you to waive your patent rights, or adopt tiered pricing to allow cheaper versions or voluntary licensing for public-sector manufacture.

You are also under pressure from investors, who expect high returns due to the innovation. Some stakeholders suggest cutting costs by outsourcing trials to countries with weaker regulatory standards, while others propose delaying access in poorer countries to focus on wealthier clients first. Your own conscience is conflicted—you believe in public health as a right, but also have obligations to shareholders, employees, and long-term sustainability of the firm.

a) Identify and discuss the ethical issues involved in this case.
b) What would be your immediate response to the situation described above?
c) If a global health coalition asks for voluntary licensing of your vaccine, how would you respond both ethically and strategically?
d) As a conscientious public-spirited executive, suggest a balanced strategy that ensures innovation, affordability, and ethical integrity.