Question

(COs F, G, H) Review this scenario. Drug Company CRZ is notified that its new antidepressant drug, Interplay, is causing its patients to experience hallucinations and serious heart palpitations. The FDA issues a recall and investigation. Company CRZ reviews the formula and invests $95 million in new research and development. Five of the scientists go to the department head and state that they believe the new version of the drug will actually be worse than the older version and that the drug needs to be scrapped entirely. The company has already announced to their shareholders they expect FDA approval in the next 6 months, so he orders them back to the drawing board and gets authority for another $85 million in R & D. Interplay gets final approval from the FDA in 6 months, and the new medication releases to the public. The department head is promoted to executive vice president of the company. In 6 months, the drug is determined to have killed 6% of its users and is being called the “new LSD of the 21st Century.” In the debriefing stage, the ex-executive VP is heard to say, “We had put so much money into it, I just had to see this through to fruition.” Which of the following statements is most applicable and appropriate to use in this situation? Expect some unanticipated outcomes. Be alert to some measurement limitations. Don’t declare victory too soon. Beware escalation of commitment. Recognize productive failures.

Answer 1

In the given case, in my views, “Don’t declare victory too soon” can be considered most appropriate. The reason being various scientists had shown their inhibition about the success of the new drug. However instead of taking corrective measures and more R&D to validate the claim, the company went ahead to develop the drug and launch it as soon as it got approval from FDA. This haste led to its downfall.

Answer: Don’t declare victory too soon