Bayer Group must need to re-evaluate its strategies in regards to emphasis on research and development, together with intellectual property. By granting a compulsory licence to your local generic drug manufacturer that allowed them to distribute a copy of Bayer's blockbuster cancer drug in a fraction of the initial cost the Indian government had ruled against Bayer. This ruling illustrated that standard intellectual property rights in emerging markets could not effectively protect pharmaceutical innovation.
As a consequence, the core of the pharmaceutical sector's business model was called into question: If ideas and innovations couldn't be protected, was the there any incentive for businesses to innovate? Would this triumph for generic drug maker’s trip similar rulings elsewhere? Would the prevailing apparent-centric IP strategies have to be adapted to emerging markets? Or would innovator companies finally must withdraw from markets with weak IP protection? Writers Peter M. Bican and Quynh Nhu Truong are linked with WHU - Otto Beisheim School of Management.
PUBLICATION DATE: March 28, 2014 PRODUCT #: W13651-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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