On April 1, 2013, the Supreme Court of India rejects Novartis’ patent application for its cancer treatment drug, Glivec. Many share the opinion that Indians should have access to cheaper generic alternatives for life-saving drugs and that multinational pharmaceutical companies should not be allowed to benefit from prolonging a drug’s patent life. However, these companies often spend decades and invest billions of dollars to develop just a single drug.
Novartis’ existing business models and pricing strategies in the United States, Western Europe and Japan now need to be re-evaluated for emerging markets such as India; taking into account affordability, limited access to health insurance and government safety nets, different marketing and distribution networks, and the powerful generics lobby. What should Novartis’ strategy be in India, and for emerging markets in general?
This case is particularly suited for understanding the pricing and marketing strategies for pharmaceutical products. It explains the need for patent protection and stimulates a discussion on how it impacts various stakeholders. Using a simple mathematical model, students will be tasked with determining alternate pricing strategies for Glivec. The case also poses the question about the challenges global pharmaceutical companies face in emerging markets. The students will examine and discuss some of the alternate business models drug companies can use to operate in emerging markets.
Inspection copies and teaching notes are available for university faculty. To receive an inspection copy and teaching note, please email cmpshop [at] smu.edu.sg with your registered faculty email ID and a link to your contact information on the faculty directory at your university as verification. An inspection copy and teaching note will then be sent to your faculty email account.
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SMU Faculty/Staff can download the case & teaching note on iNet with your SMU login ID & Password via the following links:
· Teaching Note (SMU-13-0015TN)
For purchase of the case and supplementary materials via The Case Centre, please access the following links:
· Teaching Note (SMU-13-0015TN)
For purchase of the case and supplementary materials via Harvard Business Publishing, please access the following links:
SMU Faculty/Staff can download the case & teaching note on iNet with your SMU login ID & Password via the following links:
· Teaching Note (SMU-13-0015TN)
For purchase of the case and supplementary materials via The Case Centre, please access the following links:
· Teaching Note (SMU-13-0015TN)
For purchase of the case and supplementary materials via Harvard Business Publishing, please access the following links:
(Please note you are purchasing the case only.)
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