What does the company do? Medfield Pharmaceuticals is a drug manufacturer with total domestic (US) sales of $329 million in 2009. The company is explicitly focused on the end goal of human health patient, as it is mentioned in its slogan: “We Bring Wellness”. The company manufactured and sold three primary drugs, two for pain management and one for autoimmune diseases. The company had also produced another pain management drug that had been approved by the FDA and was ready for distribution. The drugs produced and sold by Medfield Pharmaceuticals were: • Fleximat, the company's top seller accounting for 64% of its revenues, is a monoclonal antibody used to treat patients with ulcerative colitis, rheumatoid arthritis and Crohn's disease, a which causes inflammation of the digestive tract. The patent for this drug was set to expire within two years starting in 2009. • Lodamadal was an extended-release tablet for the once-daily treatment of moderate to severe pain in patients requiring continuous opioid therapy for an extended period of time. This drug accounted for 12% of revenue. • Orsamorph was an extended-release morphine sulfate tablet designed to treat severe pain. This drug contributed 24% of the company's revenue. He had eight years left on his patent. • Reximet was used to treat acute migraine. However, the company will start selling this drug in 2012. Industry Background The pharmaceutical industry was a powerful industry with billions of dollars in revenue. The period from 1995 to 2002 was the heyday of the pharmaceutical industry. During this period, the profitability of pharmaceutical companies was three times higher than the average profitability of all Fortune 500 companies in 2004. However... mid-paper... this action will come at a huge cost, considering that a few years ago there was a lawsuit against a drug manufacturer that reformulated its product at the end of its patent. Although the court found the complaints null and void, the case came under public scrutiny at the time. Takeover Offer In 2011, Medfield received an offer to buy the company for $750 million. Given the current state of the company, Susan Johnson, the CEO of the company, realized that this was a great opportunity for her to exit the business. He understands that a company with two products, which have a short patent life left and one product to sell, will attract many buyers. When she started the company, she focused on developing medicines to improve lives. However, he had to put his concerns aside when assessing the company's current value in relation to the $750 million takeover offer.