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Eli Lilly Ranbaxy Case

Autor:   •  July 13, 2016  •  Case Study  •  317 Words (2 Pages)  •  1,060 Views

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Eli Lilly in India

As consultants to Ranbaxy we have done the following analysis.

Current Scenario according to

Ranbaxy-

  • Acquired knowledge of entering into the international R&D market in pharma.
  • Gained knowledge on how to enter into joint ventures.
  • Ranbaxy was the top company by sales of Rs 20 bn in 2000.
  • Will to expand into foreign markets and incurred losses in investment abroad.

Eli Lilly –

  • Realised no future in generics field,
  • Gained knowledge on how to tackle Indian culture and the regulatory agencies,
  • Had solid foundations of 9 years in Indian Market with established distribution channels.

Options/ evaluation criteria

Ethical (very high importance)

Financial effects

Innovation /Ideas

Ease of entry into Foreign markets

Feasibility of option according to the partner

1: Continue JV as is

yes

Ranbaxy need Cash, not much added value

Medium benefit

No benefit

High

2: Sell your stake in JV

Yes if given to eli lilly, if other partners come the fate of employees uncertain- unethical

High benefit

No benefit

Medium benefit

High if for eli lilly, if sold to others eli lily will face problems

3: Buy other's stake in JV

yes

No benefit

No benefit

No benefit

Would not be allowed

4: Partially sell

Yes

Medium benefit

No benefit

Medium – low benefit

High

5: Partially buy

yes

Medium loss

Medium benefit

No benefit

Very low

6: Do nothing

yes

medium loss

Medium benefit

No

Medium

7: Do something creative (Expand the JV to foreign markets)

Yes

Medium benefit

High benefit

High benefit

Eli lilly already has good presence in foreign markets, wont like to have Ranbaxy onboard- Low

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