Case Study: Joint Venture Feasibility, Healthcare

Our client wanted help in assessing whether to continue existing JV discussions or start discussions with different companies.

Case Study: Joint Venture Feasibility, Healthcare

Our client wanted help in assessing whether to continue existing JV discussions or start discussions with different companies.

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Situation

  • Our client, the head office of an international pharmaceuticals company, had been in discussion about establishing a joint venture with the market leading Chinese company in the segment for several years, but the negotiations where making limited progress.
  • To assess whether to continue discussion or start evaluating new partners and / or business models they wanted SSCO to conduct a stakeholder analysis and evaluate alternative types of partnership candidates.

Approach

To understand the motivation of different players SSCO conducted detailed interviews across the value chain addressing:

  • Strategic priorities
  • Distribution capabilities
  • R&D pipeline

Based on early project findings the project scope was expanded to discuss partnership opportunities with other types of companies. SSCO’s support included:

  • Identification of leading emerging companies in the segment
  • Management meetings to understand their strategy and views on different types of partnerships.

Result

  • Combining the findings from several interviews it become clear that there was a disagreement on the benefits and commercials risks of a potential JV.
  • SSCO presented a number of recommendations of how to address the risks perceived by the partner.
  • At the same time our client also started evaluating partnerships with different types of companies, where the potential conflicts would not exist.

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