Joint Venture Agreements

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Eli Lilly in India Case Study BUS 545 – Global Business Management May 31, 2015 Andrew Juarez Professor Barnett Executive Summary This report provides an analysis and evaluation of the case study “Eli Lilly in India”. The general overview of the case study is the discussion of the Joint Venture agreements between two parties. Eli Lilly a reputable pharmaceutical company entered the Indian market in a joint venture agreement with Ranbaxy. The joint venture between both parties was initially a positive move, they both had an increased market share, and were driving earnings, and the relationship between both companies was positive without negative circumstances. Thus, the issue problem arose when the partnership was at an…show more content…
There were also several other Indian companies that offered to buy Ranbaxy’s stake in the JV. With India recognizing patent protection in 2005, several Indian pharmaceutical companies were keen to align with multinationals to ensure a pipeline of drugs. Although there were no formal offers from Ranbaxy, the company was expected to price its stakes as high as US$70 million. One of the industry observers in India commented: I think it is fair for Ranbaxy to expect a reasonable return for its investment in the JV, not only the initial capital, but also so much of its intangibles in the JV . Ranbaxy’s stock has grown significantly. Given the critical losses that Ranbaxy has had in some of its investments abroad, the revenue from this sale may be a significant boost for Ranbaxy’s cash flow this year. The two companies had very different business focuses. Ranbaxy was a company driven by the generics business. Lilly, on the other hand, was driven by innovation and discovery. (p.11) Christian Perspective “Is any sick among you? let him call for the elders of the church; and let them pray over him, anointing him with oil in the name of the Lord” (James 5:14). If I were to run this company from a Christian worldview I believe that they are currently doing the right thing. I believe this is extremely important. Often because we are distracted with our own minuscule issues we
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