Bayer Case
Case Questions (1/2)
What has happened now: http://www.lexology.com/library/detail.aspx?g=5dc7c10a-7a1b-4b09-a387-7aa7a09b5c95
https://www.lexology.com/library/detail.aspx?g=fc41db30-6793-4f92-90ae-a0bb82e6fdaa
Bayer India: http://www.bayergroupindia.com/pdf/Bayer%20CropScience%20Limited-Investor%20Presentation.pdf 1. How does the court order affect Bayer’s overall business strategy in India? (1 slide)
(10%)
Bayer has a long history in India since 1896 and is targeting sales of 1.3 Billion USD by 2015
Bayer Health Care is divided by 3 business areas, Nexavar was a very specific drug although a blockbuster, but smaller in comparison to the overall portfolio
It is the overall top 5 BUT in India, 73% of the patience were eligible for the drug in India (556 000 died out of the 6 most common cancers, Nexavar could ease the pain for atleast one of these patients) (556000/6= 93 000*0,73 * 5500= roughly 380 Million USD/Month of they would have taken this medication).
This would mean 4,5 Billion dollars a year! We are talking big business, that’s why they want to defend this until the last minute.
The strategy is effected in the way that Bayer looks at increasing diversity in the portfolio by becoming stronger in Bayer Cropscience in India.
2. Could Bayer have avoided the compulsory license (CL)? Identify and assess possible (evaluation criteria) market strategies for multinational pharmaceutical companies to achieve overall market success in emerging markets. (max. 3 slides)
(25%)
Also, there are talks of expanding that collaboration and bring in R&D and take some of their products either from Bayer or Zydus Cadila into other emerging markets
Have a cheaper price on the product because that would make it more assesible in the country
'second brand strategy' for emerging markets, have had some kind of generic product, team up with an Indian company in order to get contact with the more rural areas of India in terms of viability
What has happened now: http://www.lexology.com/library/detail.aspx?g=5dc7c10a-7a1b-4b09-a387-7aa7a09b5c95
https://www.lexology.com/library/detail.aspx?g=fc41db30-6793-4f92-90ae-a0bb82e6fdaa
Bayer India: http://www.bayergroupindia.com/pdf/Bayer%20CropScience%20Limited-Investor%20Presentation.pdf 1. How does the court order affect Bayer’s overall business strategy in India? (1 slide)
(10%)
Bayer has a long history in India since 1896 and is targeting sales of 1.3 Billion USD by 2015
Bayer Health Care is divided by 3 business areas, Nexavar was a very specific drug although a blockbuster, but smaller in comparison to the overall portfolio
It is the overall top 5 BUT in India, 73% of the patience were eligible for the drug in India (556 000 died out of the 6 most common cancers, Nexavar could ease the pain for atleast one of these patients) (556000/6= 93 000*0,73 * 5500= roughly 380 Million USD/Month of they would have taken this medication).
This would mean 4,5 Billion dollars a year! We are talking big business, that’s why they want to defend this until the last minute.
The strategy is effected in the way that Bayer looks at increasing diversity in the portfolio by becoming stronger in Bayer Cropscience in India.
2. Could Bayer have avoided the compulsory license (CL)? Identify and assess possible (evaluation criteria) market strategies for multinational pharmaceutical companies to achieve overall market success in emerging markets. (max. 3 slides)
(25%)
Also, there are talks of expanding that collaboration and bring in R&D and take some of their products either from Bayer or Zydus Cadila into other emerging markets
Have a cheaper price on the product because that would make it more assesible in the country
'second brand strategy' for emerging markets, have had some kind of generic product, team up with an Indian company in order to get contact with the more rural areas of India in terms of viability