This case set examines the challenges that leaders at American Home Products Corporation (AHP) face after evidence surfaces regarding potentially fatal side effects of two of its drugs: Pondimin (fenfluramine) and Redux (dexfenfluramine). The A case facilitates a discussion of the key uncertainties that AHP leaders faced and whether there are warning signals of a pending crisis that they could detect in time to mitigate its impact.

This B case reveals AHP’s status in May 2021 as the company continues to confront the consequences of the drug withdrawals; it provides an opportunity to discuss the longer-term leadership challenges at AHP and the subsequent crisis.

At the University of Virginia Darden School of Business, this case set is taught in the “Leading in Uncertainty and Crisis” class, which is included in the full-time, part-time, and executive MBA programs. It would also be suitable in a leadership and strategy module. It includes video with Ken Martin, one of the case protagonists, discussing the issues in the case.