Should Natco Explore the Out-Licensing Opportunity
New medicine launches in India had come down by nearly 80 per cent during the last six years. The risks associated with new-drug development were high, and for that reason, companies were considering buying the potential molecules in the early stages of development at comparatively cheaper rates. Apart from cutting costs, out-licensing provided opportunities for domestic players to enter into collaborations with global players. Now, with out-licensing gaining popularity in the global pharmaceutical markets, one of the fastest growing pharmaceutical companies in India wondered whether out-licensing could be its next big Indian opportunity.
Collection: Ivey Business School (Canada)
Ref: IVEY-9B15M072-E
Format: PDF
Number of pages: 12
Publication Date: Jul 20, 2015
Language: English
Review date: Jul 20, 2015
What material is included in this case:
Description
New medicine launches in India had come down by nearly 80 per cent during the last six years. The risks associated with new-drug development were high, and for that reason, companies were considering buying the potential molecules in the early stages of development at comparatively cheaper rates. Apart from cutting costs, out-licensing provided opportunities for domestic players to enter into collaborations with global players. Now, with out-licensing gaining popularity in the global pharmaceutical markets, one of the fastest growing pharmaceutical companies in India wondered whether out-licensing could be its next big Indian opportunity.
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Year: 2014
Geographic Setting: India
Industry Setting: Manufacturing;
Learning Objective
The case is designed for use in an MBA-level management course in a segment on strategic decision-making, analysis of potential business opportunities and diversification. It can also be used in a course on strategic management in the pharmaceutical industry. The teaching objectives of the case are to educate students about the rapidly changing dynamics of the pharmaceutical industry. The case provides a snapshot of the different factors affecting pharmaceutical companies in India and of the different options (such as out-licensing) for future growth and expansion. The case also provides students with an understanding of how macro- and micro-level business environment factors influence strategic decision-making and business conduct.
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"Should Natco Explore the Out-Licensing Opportunity"
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