Bayer Case: Entering the US antidepressant market

Notiz für den Interviewer

Show Exhibit 1 & 2

Notiz für den Interviewer

Regarding 1a)

Bonus question: What are differences on the revenue side across the three options? 

Solution: Own sales force: Concentration on own product which may help boosting sales Co-Marketing: Limited ramp up time/ sooner achievement of peak sales (since the partner is expected to have existing relationships with psychiatrists)

Regarding 1b)

Bonus question: Where are differences on the cost side across the three options?

Solution: Costs structure applicable for option 1 and 2. Interviewee should ask for values for the four elements → Largest proportion of cost structure are selling expenses. Selling expenses will be impacted by both launching alone and partner option

Notiz für den Interviewer

Optional bonus question: When looking at the third option (selling, licensing, swapping): In which situation would you consider this option to be most valuable?

Solution:

• Sell drug because the sum of selling and overhead expenses may make is unprofitable for Bayer to market the drug
• License out for the same reasons as selling it
• Swap if there is another company which needs this drug and has a drug that fits better to Bayer’s profile (e.g., sales force coverage, portfolio)