Stanford University Medical Researchers Conducted a Study on the Correlation

question 263

Essay

Stanford University medical researchers conducted a study on the correlation between the use of fertility drugs and ovarian cancer. Their study, published in the American Journal of Epidemiology , concludes that the use of the fertility drugs, Pergonal and Serophene, may increase the risk of ovarian cancer by three times. The lead author of the studies, Professor Alice Whittemore, stated, "Our finding in regard to fertility drugs is by no means certain. It is based on very small numbers and is really very tenuous." FDA Commissioner David Kessler would like the infertility drug manufacturers to disclose the study findings and offer a warning on the drug packages. He notes, "Even though the epidemiology study is still preliminary, women have a right to know what is known. We're not looking to make more of this than there is." If you were a manufacturer of one of the drugs, would you voluntarily disclose the study information?

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Definitions:

Poison Pills

A defensive strategy used by companies to deter hostile takeovers by making the company less attractive to potential acquirers.

Discount Rate

The interest rate charged to commercial banks and other depository institutions by a central bank for loans, used as a tool for regulating monetary policy.

Cost of Capital

The minimum return a corporation must achieve on its investment activities to keep its market price stable and entice financing.

Cost of Equity

The return that shareholders require or expect to earn on their investment in a company’s equity.