Criteria Identification and Importance
The most important criteria that carries the greatest weight for Roche’s distribution and pricing decision is to remain in control of the intellectual property that is Tamiflu. With the government and panicking countries seeking to stockpile the drug, Roche has to be aware of what effects this will have on Tamilfu’s future. If they start handing out the instructions required to make the medication, there is little hope that once this pandemic ends that those producers will just quit making Tamiflu all together. This drug seems vital to Roche’s future and losing control of it, would drastically reduce future earnings. For these reasons, Roche has to be cautious and make sure that the sublicensing they …show more content…
Shareholders will be expecting higher than normal return for this time period, and Roche does not want to disappoint. Roche does feel needed to fulfill this obligation to the stock holders, but keeping the Tamiflu patent and avoiding a negative media frenzy are more important. If Roche only looks at short-term opportunities, profit is the most attractive criteria, but it could have potential disastrous consequences. Ignoring the health of the world to make extra money will have devastating and lasting effects on Roche. It was assumed that keeping the patent of the Tamiflu drug was more rewarding than making more money for a short time period.
The least weighted criteria for Roche is to secure mass distribution of Tamiflu. Roche can attempted to supply the entire worlds’ demand for Tamiflu, but it is also possible to put the burden on other manufacturers. Since this decision point has more than one option to fulfill it, it was given the lowest importance. It is in Roche’s best interest to prioritize securing the patent and remaining in good standing with the media over them fulfilling world distribution. Making sure every country has the necessary stockpiles are important, but it is not a encumbrance Roche has to bear …show more content…
Knowing this information would show if Roche is a diversified company or not. If Roche was overly reliant on Tamiflu, they should put almost their entire effort on maintaining maximum control on the patent. It seems Tamiflu might not be that important due to the fact that when revenue made by that drug increased by over two hundred percent, but the stock price stayed close to constant. Another piece of useful information would be how many years left Tamiflu had on its patent. If the time was close to expiring, maintaining full control of the license would lose importance. Also, it would have been nice to know how long Roche could have held out until the issue of compulsory licenses. With no time table, Roche feels pressured to make a decision that will meet the demand on the world as soon as possible. If there was enough time to increase production capacity, Roche’s decision on who will provide Tamiflu might
The most important criteria that carries the greatest weight for Roche’s distribution and pricing decision is to remain in control of the intellectual property that is Tamiflu. With the government and panicking countries seeking to stockpile the drug, Roche has to be aware of what effects this will have on Tamilfu’s future. If they start handing out the instructions required to make the medication, there is little hope that once this pandemic ends that those producers will just quit making Tamiflu all together. This drug seems vital to Roche’s future and losing control of it, would drastically reduce future earnings. For these reasons, Roche has to be cautious and make sure that the sublicensing they …show more content…
Shareholders will be expecting higher than normal return for this time period, and Roche does not want to disappoint. Roche does feel needed to fulfill this obligation to the stock holders, but keeping the Tamiflu patent and avoiding a negative media frenzy are more important. If Roche only looks at short-term opportunities, profit is the most attractive criteria, but it could have potential disastrous consequences. Ignoring the health of the world to make extra money will have devastating and lasting effects on Roche. It was assumed that keeping the patent of the Tamiflu drug was more rewarding than making more money for a short time period.
The least weighted criteria for Roche is to secure mass distribution of Tamiflu. Roche can attempted to supply the entire worlds’ demand for Tamiflu, but it is also possible to put the burden on other manufacturers. Since this decision point has more than one option to fulfill it, it was given the lowest importance. It is in Roche’s best interest to prioritize securing the patent and remaining in good standing with the media over them fulfilling world distribution. Making sure every country has the necessary stockpiles are important, but it is not a encumbrance Roche has to bear …show more content…
Knowing this information would show if Roche is a diversified company or not. If Roche was overly reliant on Tamiflu, they should put almost their entire effort on maintaining maximum control on the patent. It seems Tamiflu might not be that important due to the fact that when revenue made by that drug increased by over two hundred percent, but the stock price stayed close to constant. Another piece of useful information would be how many years left Tamiflu had on its patent. If the time was close to expiring, maintaining full control of the license would lose importance. Also, it would have been nice to know how long Roche could have held out until the issue of compulsory licenses. With no time table, Roche feels pressured to make a decision that will meet the demand on the world as soon as possible. If there was enough time to increase production capacity, Roche’s decision on who will provide Tamiflu might