Friday, February 7, 2014

Pulmocit: Negotiating Pharmaceutical Products with the Government (parts A & B)

FALCAO Horacio, GOUVEIA Rodrigo
©2013 INSEAD Case Study
Also available: Teaching Note

This is a two-party negotiation between a pharmaceutical company and a government agency to decide if a new medication will be put on the reimbursement list. The pharmaceutical company has a valuable new product, the government has semi-monopolistic power over whether (or not) drugs are listed. The role-play allows participants to negotiate given the inherent value-creation limitations of the setting.

Pedagogical Objectives:  1. Partisan perceptions 2. From interests to options to legitimacy 3. Limitations to value creation in government negotiations (Do no harm/ Their gain is our loss/ Competition is always good/ Support our group/ Live for the moment/ No pain for us, no gain for them)