Case study 2

Pharmaceutical Company B had outsourced its products to a global pharmaceutical company (the Partner). Although the Company was enjoying risk-free cashflow from this arrangement, the management team was concerned that it will permanently be dependent on the Partner in Europe. The local European team have assessed the Company’s pipeline and determined that it was economically more attractive to pursue a co-marketing approach for its future products. The Company renegotiated terms with the Partner and now it co-markets the main product.