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 market. The problem that Eli Lilly Ranbaxy was being exposed to was a plateau of success with a joint venture and the thoughts of separating and selling stakes became an option. The companies together touch every target market they choose and excelled in meeting all of their profitable and intellectual goals. The rumors of Ranbaxy expecting to divest the JV had both companies starting to think if they wanted to continue the business partnership. In my opinion Ranbaxy and Eli Lilly should continue their business partnership but open their shares to the public to allow for public investment.
The problem in this case is for Lilly and Ranbaxy to decide whether or not they are going to continue partnership or if they are going to separate. Does this joint venture need to continue with the way patents law and intellectual property have developed in countries like India?
Was it a good idea for Eli Lilly and Ranbaxy to start a Joint Venture?
Eli Lilly started off as a small four person pharmaceutical company founded in 1876 that expanded to become one of the largest pharmaceutical companies in the United States. By 1992 Lilly’s products were manufactured and distributed through 25 countries and sold in more than 130 countries. The growth in the globalization for Eli Lilly helped the company explore new world success by searching for new business opportunities. The ability to expand globally allowed for the company to use