This case has been designed to facilitate negotiations exercises connected with the formation of partnership transactions in the health care industry. It is based on factual information, but reflects a hypothetical situation involving two companies and products, all of which were masked. The scenario described in the case include Pharmac, large pharmaceutical companies, and Respire, a small medical start. Pharmac and Respire began negotiating a partnership to develop and eventually market inhaled parathyroid hormone (PTH) for the treatment of osteoporosis. If successful, this product will improve the options available for the treatment of osteoporosis. It was also to produce a "blockbuster" sales, because it would make the PTH is an extremely effective treatment option, more comfortable and attractive for a large part of untreated patients who were injected away (injection standard delivery mechanism for the drug). Product development has been highly speculative and is expected to take six to seven years due to the early stage of development of inhaled delivery systems and long-term phase III trials of fracture required for approval. Pharmac launched the first man-made, an injectable form of parathyroid hormone called Strocal in 2002. However, no one has yet developed, not injectable version of PTH, despite the efforts of Pharmac and other companies, which have involved more than ten years. Respire goal is to become the first company to solve this problem by developing inhaled formulation and delivery device Strocal through the lungs in a safe, efficient, and reproducible manner. Sufficient information is provided in the case to allow students to negotiate the terms of royalties, milestones, exclusivity provisions, and equity investments. After OIT-81A, information known to Pharmac (but not Respire) provided. In OIT-81B, information is known Respire (but not Pharmac) is given. "Hide
by Stefanos Zenios, Robert Chess, Sarah Gaviser Leslie, Lyn Denend Source: Stanford Graduate School of Business 10 pages. Publication Date: January 14, 2008. Prod. #: OIT81B-PDF-ENG
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