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Cipla-Medpro acquisition: the pre- and post-merger story.

The learning outcomes are as follows: to develop a deeper understanding of the pre- and post-merger factors that should be considered in an M&A transaction; to develop an appreciation of the human capital and organisation cultural aspects involved in cross-country M&A’s; to develop an understanding of the role of leaders and an integration team to make an M&A realise the intended value; and to develop a sensitivity for doing an M&A in a developing country like South Africa.

This case study creates opportunities for discussing both pre-merger and post-merger dynamics to create a sensitivity that multiple factors contribute to a successful merger and acquisition strategic move. It is intended for classroom discussion only and does not represent correct or incorrect handling of the situation.

The complexity is MBA level. This case is primarily focussed on M&A’s as part of a course in Strategic Management (MBA level) but can also be considered for a course on Strategic HRM.

Teaching Notes are available for educators only.

CSS: 11 Strategy.

The purpose of this study is to understand the evolution of “marketing” in the public and corporate discourse of twentieth-century India.

The paper draws its inferences from an analysis of the digital Times of India and Financial Times historical newspaper databases, the corporate archives of two leading Mumbai-based firms – Godrej in consumer goods and Cipla in pharmaceuticals and oral histories of marketing managers.

The paper identifies four eras of “marketing” in twentieth-century India. Era I (1910-1940) saw the emergence of agricultural “marketing boards” and “marketing officers” in the public sector and the growth of Indian and multinational advertising agencies. Era II (1940-1970) witnessed the formation of management and advertising associations and business schools with close involvement of American players. In Era III (1970-1990), there was a paradigm shift as “marketing” grew in corporate discourse and firms began to employ “marketing managers” in “marketing departments”. Era IV (1990-till date) witnessed the explosion of “marketing” in public and corporate discourse alongside the consumption boom in India. The paper shows how “marketing” evolved separately in the public and private sectors and in different phases as compared to that in the West.

This paper overturns conventional wisdom on marketing history in India, which has so far discounted its significance before 1960 or accorded primary significance to the 1990s’ economic liberalisation programme.

Findings of this study will be useful to marketing professionals and teachers who wish to learn more about the history of marketing in India.

The paper uses unexplored archival material and provides the first account on the evolution of “marketing” in public and corporate discourse in twentieth-century India.

The purpose of this paper is to examine the extent to which developing countries could build national initiatives of compulsory licences.

The focus of this article is only on developing countries. The author reflects on the Indian patent jurisprudence regarding the operational relationship between the general principles applicable to working of patented inventions locally and the grant of compulsory licences. The discussion that follows is based on a review of the case: Bayer Corporation versus Natco Pharma with a view to presenting a model for developing countries to maintain that the public interest principle of patent law is well-founded in their domestic patent regimes.

The analysis confirms that failure to work locally continues to be abusive of the patent right under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, and remains a valid condition on which to grant a compulsory licence. Thus, this reverses the often-contrary misconception that has become almost a unanimous assumption that failure to work basis for granting compulsory licensing would violate Article 27(1) of TRIPS and its enforcement provisions on patent.

The author argues that as no member state has challenged the legality of Indian’s decision in the World Trade Organisation, under the dispute settlement understanding (DSU) system is more supportive of the contention that failure to work locally continues to be permissible under TRIPS and remains valid conditions on which member states can grant compulsory licences. This further adds weight to the understanding that nothing in the light of TRIPS would, in fact, preclude any possibility of developing countries amending their patent laws accordingly to maintain that the public interest principle underlining patent law is well-founded in their domestic patent regimes.

Purpose: The present study aims to test the Quadratic Programming model for Optimal Portfolio selection empirically.

Need for the Study: All the investors who buy financial products are motivated to obtain higher profits or, in other words, to maximise their returns. However, the high returns are often accompanied by higher risks, and avoiding such risks has become the primary concern for all investors. There is a great need for such a model to maximise profits and minimise risk, which can help design an investment portfolio with minimum risk and maximum return. The Quadratic Programming model is one such model which can be applied for selected shares to build an optimised portfolio.

Methodology: This study optimises the stock samples using a two-level screening of correlation coefficient and coefficient of variation. The monthly closing prices of the NSE-listed Indian pharmaceutical stocks from December 2019 to January 2022 have been used as sample data. The Lagrange Multiplier method is used to apply the model to achieve the optimal portfolio solution. Based on the market reality, the transaction costs have also been considered. The Quadratic programming model is further optimised to achieve the optimal portfolio for the select stocks.

Findings: The traditional portfolio theory and the modified quadratic model gives similar and consistent results. In other words, the modified quadratic model asserts the accuracy of the conventional portfolio model. The portfolio constructed in the present study gives a return much higher than the return of the benchmark portfolio of Nifty Fifty, indicating the usefulness of applying the Quadratic Programming model.

Practical Implications: The construction of an optimal portfolio using the traditional or modified Quadratic model can help investors make rational investment decisions for better returns with lower risks.

This research investigates the top five pharmaceutical companies in India to determine whether their financial structures are sound and if they face the risk of bankruptcy, highlighting the potential contribution of intellectual capital (IC) to financial stability.

The analysis outlines operating ratios, profitability ratios, possibility of bankruptcy (through Z-scores) and attractiveness of the financial structure (through the F-score), with consequent focus on (IC).

The financial structure of the selected companies seems stable. Changes in the Indian pharmaceutical scenario, above all, regarding the patent system, will force the companies to consider the impact of IC carefully.

Indian pharmaceutical companies need sustainability and development, with increasing focus on patent issues. To enhance innovation capabilities and overcome international competition, they should redesign their business orientation towards IC, mainly when impacting patents.

Using established approaches for predicting potential bankruptcy, this study focuses on the financial performance of top Indian pharmaceutical companies. IC can support financial stability, and this study provides further perspectives for managing their financial structure, both statically and dynamically.

The purpose of this paper is to test the pricing performance of Black-Scholes (B-S) model, with the volatility of the underlying estimated with the two-scale realised volatility measure (TSRV) proposed by Zhang et al. (2005).

The ex post TSRV is used as the volatility estimator to ensure efficient volatility estimation, without forecasting error. The B-S option prices, thus obtained, are compared with the market prices using four performance measures, for the options on NIFTY index, and three of its constituent stocks. The tick-by-tick data are used in this study for price comparisons.

The B-S model shows significantly negative pricing bias for all the options, which is dependent on the moneyness of the option and the volatility of the underlying.

The negative pricing bias of B-S model, despite the use of the more efficient TSRV estimate, and post facto volatility values, confirms its inadequacy. It also points towards the possible existence of volatility risk premium in the Indian options market.

The use of tick-by-tick data obviates the nonsynchronous error. TSRV, used for estimating the volatility, is a significantly improved estimate (in terms of efficiency and bias), as compared to the estimates based on closing data. The use of ex post realised volatility ensures that the forecasting error does not vitiate the test results. The sample is selected to be large and varied to ensure the robustness of the results.

This paper aims to investigate inter firm intellectual capital (IC) disclosures and its variations in top 20 listed pharmaceutical companies in India, study the category wise and element wise IC disclosures (ICD), find out the impact of ICD on the creation of IC in monetary terms, find out correlation between IC valuation and its disclosure, and test significance of correlation.

This is an exploratory and empirical study of ICD by sample companies in 2009 using content analysis. IC is valued as market value minus book value. Five‐point scale (0‐4), mean disclosure score, range, Chi‐ squares, Karl Pearson's correlation and Student's t‐test are used for analysis and interpretation.

Although top 20 companies of knowledge‐led industry, ICD are low, narrative and varying significantly among companies. ICD score varies in range of 4 to 36 against expected score of 96. External capital with mean score of 18.78 is the most disclosed category. Brands and business collaborations is most disclosed element of IC, followed by employee competence and internal organizational capital respectively. ICD leads to creation of IC in some companies. Markets reflected true valuations of ICD in seven companies, and high degree of inconsistency in 13 companies. Overall correlation between IC valuation and disclosure is negative, weak and insignificant.

Sector‐specific intangible asset monitors should be formulated to capture ICD.

The paper measures ICD using five‐point scaling technique, it uses Chi‐ square test (non‐parametric test) to calculate inter‐firm variations. The paper also correlates ICD and valuation of respective companies with Spearman's correlation for the first time in pharmaceutical companies in India. It proposes inclusion of fourth category i.e. sector‐specific items in existing models of ICD.

This paper documents and accounts for the globalization of the so-called national bourgeoisie in the late twentieth century. A substantial and growing body of sociological literature holds that firms and investors from the developing world have been denationalized, neutered, or destroyed by their efforts to penetrate international markets – and that cross-national economic competition is therefore giving way to transnational class conflict over time. By way of contrast, I hold that not only peripheral capitalists but their elected and appointed representatives are compelled to undertake large-scale, fixed investments, exploit their competitive advantages, and challenge foreign firms – and their respective representatives – on their own soil by the very logic of capitalist competition, and that the aforementioned challenges will occur on political as well as economic terrain.

The Indian pharmaceutical industry accounts for 8% of global production and exports medicines to over 200 countries. Multinational enterprises (MNEs) enter the Indian market either directly through the establishment of subsidiaries or indirectly through licensing arrangements. However, evidence on MNE’s contribution toward development in India in terms of capability enhancement and linkages or through other spillover effects is limited. The purpose of this research was to generate evidence on (a) contribution of MNEs in the pharmaceutical market in India, (b) nature and impact of foreign direct investment (FDI) inflows in the Indian pharmaceutical sector, (c) contribution of MNEs in R&D and innovation in India, and (d) MNE’s contribution toward introducing new chemical entities (NCEs) and new biological entities (NBEs) in India through a mixed method research design. We conducted an in-depth quantitative analysis on multiple data sets and qualitative interviews of various stakeholders to generate a holistic understanding on the aforementioned research objectives. Our findings suggest that from the perspective of capability enhancement and linkages, the contribution of pharmaceutical MNEs in India is limited. We observed that majority of FDI investments are brownfield against desired greenfield investments. In addition, MNEs are investing far less of profit before tax (PBT) compared with Indian firms on research and development. However, MNEs are contributing significantly toward access to certain pharmaceutical segments like vaccines, hormones, and parenterals, which require sophisticated production facilities, advanced technology, and intellectual capital. Further, MNEs role in innovation and introduction of new medicines (new molecular entity [NME] and NBE New Chemical and Biological Entities (NCEs and NBEs)) in India is significant. We propose that creating a conducive policy environment and predictable regulatory environment can facilitate capability enhancement and linkages through MNEs. Some of the potential policy instruments include appropriate implementation of FDI policy and Intellectual Property Rights (IPR) policy to balance trade and public health.