ELI LILLY IN INDIA RETHINKING THE JOINT VENTURE Kishore – 01 STRATEGY Abhay Abhishek Kunal – 05 Anil Kumar Jadli – 11 J.Harish – 25 Khushal Malik – 28 Sharad Singh – 49 PHARMACEUTICAL INDUSTRY – Global Trend • • • • Mainly concentrated in the United States‚ Europe‚ and Japan Developing a drug from discovery to launch took 10 to 12 years. Cost of development of drug is between $500-$800 million. Drugs were strictly controlled by government agencies: o Food and Drug Administration (FDA) – USA‚
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Question1: Did Eli Lilly pursue the right strategy to enter the Indian market? In 1993 Eli Lilly‚ one of the leading pharmaceutical firms in the USA‚ started a joint venture in India with the leading Indian company Ranbaxy. The decision was dictated by the conditions of the US market and opportunities of the Indian market. Costlier manufacturing practices due to strict governmental control‚ soaring prices in 1990s‚ invasion of cheap generics to the USA market as opposed to low costs in India and
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had a huge market. Lilly could expand the potential opportunities and got profits in India. In addition‚ foreign direct investment was encouraged by increasing the maximum limit of foreign ownership to 51 per cent (from 40 percent) in the drugs and pharmaceutical industry. (Political strategy was different from important substitution to an export-driven economy.) 2. Was deciding to partner wrong? Is partnership a good or bad thing? No‚ deciding to partner was not wrong. Lilly was a name that most
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Summary The Eli Lilly Ranbaxy joint venture allowed both Eli Lilly and Ranbaxy as separate companies to grow and expand as one venture. The support and reliability that both companies had with one another allowed for a strong business relationship to form which led to the same business strategy vision and goals. This joint venture eliminated trade with other companies for the same thing that one another could share to become one of the largest and most successful pharmaceutical companies in the Indian
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Eli Lilly in India: Rethinking the Joint Venture Strategy 1. What Decisions or Actions need to be taken? For Luc Bonnard‚ the vice chairman‚ board of directors of Schindler Holdings Ltd‚ the decision to make was to allow Silvio Napoli‚ the Indian country manager to continue managing after 8 months of operations without installing a single elevator. More importantly Silvio needs to decide whether to stick with his business plan that he wrote in Switzerland or come up with a new business plan
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The case consists of two major pharmaceutical companies that joint to collaborate their research and pharmaceutical technologies to start a joint venture in India. Both have valuable resources that have benefited both companies during the joint venture. Now both are questioning if there is still any value in maintaining the joint venture in India and will be deciding what will be the best route to take. Ranbaxy Laboratories wants to be bought out‚ but Eli Lilly is worried of the financial implications
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Eli Lilly A Public Company Stock ID: LLY BSC108-003 Video: http://www.youtube.com/watch?v=34fehedEYhQ Officers of Company John C. Lechleiter‚ Ph. D - CEO Derica W. Rice – CFO Bart Peterson – Corporate Affairs and Communications How Eli Lilly Got Started… The company was founded by Colonel Eli Lilly in May 1876 in Indianapolis‚ Ind. Originally the company only had 3 employees. The company remained in the family until 1953 as Colonel Lilly’s son‚ Josiah‚ and two grandsons
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Rui Gao MGMT 450 – 130 4/28/2014 Eli Lilly case questions 1) Did Eli Lilly pursue the right strategy to enter the Indian market? It was a right strategy for Eli Lilly that started a joint venture with Ranbaxy to enter the Indian market. First of all‚ Ranbaxy was the second largest pharmaceutical company that manufactures bulk drugs and generic drugs in India‚ with a domestic market share of 15 per cent. It had established broad distribution network‚ and it was the second largest exporter
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In 1993 Eli Lilly‚ one of the leading pharmaceutical firms in the USA‚ started a joint venture in India with the leading Indian company Ranbaxy. The decision was dictated by the conditions of the US market and opportunities of the Indian market. Costlier manufacturing practices due to strict governmental control‚ soaring prices in 1990s‚ invasion of cheap generics to the USA market as opposed to low costs in India and new regulations that opened Indian market to foreign investments (up to 51%)
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they will continue to depreciate in the same amount for the life of the asset. 3. What is the effect of the depreciation lives change? How will this change affect future reported profits? As result of the change in depreciation policy‚ the company also reviewed on depreciation lives on certain PPE in US. $3.2 million resulted from the change on depreciation lives. The increase in total‚ including the increase as a result of the change of depreciation method and depreciation on lives
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