Case Study Pti
Introduction The market for Sexual Dysfunction treatment especially among males is considered to be a market with great growth potential. Pharma Technologies Inc. in Canada has achieved a patent for the new break through technology that offers treatment for the condition in a totally different way than the current prevalent drugs in the market like Viagra. The case discussion below attempts at analyzing the best alliance strategy between PTI and a company to ensure timely development of a new drug with the technology that PTI has patented. The analysis includes a discussion on the strategic issues and objectives, industry analysis, Firm analysis, the deal options and recommendation for a strategy.
Central Question and Strategic issues Glickman’s central concern seems to be how would PTI secure the second tranche of investment from the investors in their research for the development of a new oral therapy male sexual dysfunction. With accelerating cash requirements to be able to complete the studies planned, PTI is under pressure to show results in order to avail the second phase of capital. However, a deeper analysis brings forth larger strategic issues that PTI needs to decide upon in order to reach the next level of their work. Due to the proprietary technology they own it is imperative that they select a partner for co-development of the final product in a short time frame so that the product can be brought to the market while the market is still profitable. Also, the short time frame to accomplish the alliance as well as complete the “technologically sophisticated and time consuming studies” (Herbert, 2004) to test the compatibility of the Factor X compounds with PTI’s technology is also due to the milestones PTI needs to achieve in order to avail the second round of funding. There is also a question on what kind of alliance should be the most effective in this situation. Not only are in-licensing and out-licensing being considered but since, the
Central Question and Strategic issues Glickman’s central concern seems to be how would PTI secure the second tranche of investment from the investors in their research for the development of a new oral therapy male sexual dysfunction. With accelerating cash requirements to be able to complete the studies planned, PTI is under pressure to show results in order to avail the second phase of capital. However, a deeper analysis brings forth larger strategic issues that PTI needs to decide upon in order to reach the next level of their work. Due to the proprietary technology they own it is imperative that they select a partner for co-development of the final product in a short time frame so that the product can be brought to the market while the market is still profitable. Also, the short time frame to accomplish the alliance as well as complete the “technologically sophisticated and time consuming studies” (Herbert, 2004) to test the compatibility of the Factor X compounds with PTI’s technology is also due to the milestones PTI needs to achieve in order to avail the second round of funding. There is also a question on what kind of alliance should be the most effective in this situation. Not only are in-licensing and out-licensing being considered but since, the
References: Canada: Index of Economic freedom, Retrieved from http://www.heritage.org/index/country/canada Herbert,J. (2004). Pharma Technologies Inc. Retrived from http://www.uk.sagepub.com/upm-data/12289_Chapter_1.pdf Mann, C.J. and Gotz, K. (2006). Borderless Business. Praeger. London. UNITED STATES PHARMACEUTICALS & HEALTHCARE REPORT. (2012). U.S. Pharma & Healthcare Report, (4), 1-97. United States: Index of Economic freedom, Retrieved from http://www.heritage.org/index/country/unitedstates