Harvard Case - The Eli Lilly MDR-TB Partnership: Creating Private and Public Value
"The Eli Lilly MDR-TB Partnership: Creating Private and Public Value" Harvard business case study is written by Alan M. Trager, Jessica Droste Yagan. It deals with the challenges in the field of Business & Government Relations. The case study is 28 page(s) long and it was first published on : Oct 5, 2007
At Fern Fort University, we recommend that Eli Lilly continue its partnership with the Global Fund to Fight AIDS, Tuberculosis and Malaria (Global Fund) in the fight against MDR-TB. This partnership should be strengthened through a multi-pronged approach that leverages Eli Lilly's core competencies in drug development, manufacturing, and distribution while simultaneously addressing the complex social and economic challenges associated with MDR-TB in developing countries.
2. Background
This case study explores the partnership between Eli Lilly, a leading pharmaceutical company, and the Global Fund, a public-private partnership dedicated to combating HIV/AIDS, tuberculosis (TB), and malaria. The partnership focuses on addressing the growing threat of multidrug-resistant tuberculosis (MDR-TB), a deadly form of TB resistant to standard treatment.
The main protagonists of the case study are:
- Eli Lilly: A multinational pharmaceutical company with a long history of innovation and a commitment to global health.
- The Global Fund: A public-private partnership that provides funding and support to countries fighting HIV/AIDS, TB, and malaria.
3. Analysis of the Case Study
The case study highlights the complex challenges of addressing MDR-TB in developing countries. These challenges include:
- Limited access to healthcare: Many developing countries lack the infrastructure and resources to effectively diagnose and treat MDR-TB.
- Social stigma: Patients with MDR-TB often face discrimination and social isolation, making it difficult for them to access treatment and support.
- Financial constraints: The cost of treating MDR-TB is high, making it difficult for many countries to afford the necessary medications and services.
Eli Lilly's partnership with the Global Fund is a critical step towards addressing these challenges. The partnership leverages Eli Lilly's expertise in drug development and manufacturing to provide access to affordable and effective MDR-TB treatments. Furthermore, the partnership supports capacity building in developing countries, helping them to build sustainable healthcare systems that can effectively address MDR-TB.
Frameworks for Analysis:
- Porter's Five Forces: The case study can be analyzed using Porter's Five Forces framework to understand the competitive landscape of the MDR-TB market. The analysis should consider the threat of new entrants, the bargaining power of buyers and suppliers, the threat of substitutes, and the intensity of rivalry among existing competitors.
- Public-Private Partnership Framework: The case study can be analyzed using a public-private partnership framework to understand the roles and responsibilities of both Eli Lilly and the Global Fund. This framework can help identify potential challenges and opportunities for collaboration.
- Social Impact Assessment: The case study can be analyzed using a social impact assessment framework to evaluate the positive and negative impacts of the partnership on the communities affected by MDR-TB. This assessment should consider factors such as access to healthcare, economic development, and social equity.
4. Recommendations
Eli Lilly should continue its partnership with the Global Fund and implement the following recommendations to maximize its impact:
Strengthening the Partnership:
- Expand the scope of the partnership: Explore new areas of collaboration, such as research and development of new MDR-TB drugs, capacity building for healthcare professionals, and community engagement initiatives.
- Increase financial commitment: Increase its financial contribution to the Global Fund to support the expansion of MDR-TB treatment programs.
- Improve communication and coordination: Establish clear communication channels and mechanisms for coordination between Eli Lilly and the Global Fund to ensure efficient and effective collaboration.
Addressing Social and Economic Challenges:
- Develop innovative financing mechanisms: Explore innovative financing mechanisms, such as social impact bonds, to make MDR-TB treatment more affordable and accessible.
- Promote community engagement: Support community-based initiatives that address the social stigma associated with MDR-TB and promote patient adherence to treatment.
- Advocate for policy changes: Advocate for policy changes that address the social and economic determinants of health, such as poverty, inequality, and lack of access to education.
Leveraging Eli Lilly's Core Competencies:
- Develop new and improved MDR-TB drugs: Invest in research and development to develop new and improved MDR-TB drugs that are more effective, safer, and easier to administer.
- Optimize drug manufacturing and distribution: Streamline drug manufacturing and distribution processes to ensure timely and efficient delivery of MDR-TB treatments.
- Build capacity in developing countries: Provide training and technical assistance to healthcare professionals in developing countries to improve their ability to diagnose, treat, and manage MDR-TB.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: These recommendations align with Eli Lilly's core competencies in drug development, manufacturing, and distribution and its commitment to improving global health.
- External customers and internal clients: The recommendations are designed to benefit both external customers (patients with MDR-TB) and internal clients (Eli Lilly employees and stakeholders).
- Competitors: The recommendations are designed to help Eli Lilly maintain its competitive advantage in the MDR-TB market by developing innovative solutions and strengthening its partnerships.
- Attractiveness ' quantitative measures: The recommendations are expected to lead to improved health outcomes, increased access to treatment, and reduced mortality rates, which will have a positive impact on the global economy.
6. Conclusion
Eli Lilly's partnership with the Global Fund is a critical step towards addressing the global MDR-TB epidemic. By continuing and strengthening this partnership, Eli Lilly can leverage its core competencies to develop innovative solutions, improve access to treatment, and save lives. The partnership is a testament to the power of public-private collaboration to address complex global health challenges.
7. Discussion
Alternative options:
- Exit the partnership: Eli Lilly could choose to exit the partnership, but this would likely result in reduced access to MDR-TB treatment in developing countries.
- Focus solely on drug development: Eli Lilly could focus solely on developing new and improved MDR-TB drugs, but this would not address the broader social and economic challenges associated with MDR-TB.
Risks and key assumptions:
- Political instability: Political instability in developing countries could disrupt MDR-TB treatment programs and make it difficult for Eli Lilly to operate effectively.
- Financial constraints: The Global Fund may face financial constraints in the future, which could limit its ability to support MDR-TB treatment programs.
- Drug resistance: MDR-TB strains could develop resistance to current treatments, requiring the development of new drugs.
8. Next Steps
- Develop a detailed implementation plan: Develop a detailed implementation plan for the recommendations, including timelines, milestones, and resource requirements.
- Establish a monitoring and evaluation framework: Establish a robust monitoring and evaluation framework to track the progress of the partnership and assess its impact.
- Engage with stakeholders: Engage with key stakeholders, including government officials, healthcare professionals, patients, and community organizations, to ensure that the partnership is aligned with their needs and priorities.
By taking these steps, Eli Lilly can ensure that its partnership with the Global Fund is a success and that it makes a lasting impact on the fight against MDR-TB.
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Case Description
In 2003, pharmaceutical manufacturer Eli Lilly created the MDR-TB Partnership to fight MDR-TB, a form of tuberculosis. An estimated 450,000 new cases of this disease were reported each year, primarily in China, India, and Russia. The Partnership, an alliance of 14 public and private organizations, attempted to transfer technology to increase the supply of drugs that could cure MDR-TB; train health care workers to design successful strategies for diagnosis and treatment; and publicly promote proper treatment of MDR-TB through community support, patient advocacy, and workplace awareness. The Partnership emerged as an organizational success but the reality of transferring technology across the borders of both organizations and countries was a significant challenge. It was also challenging for Lilly, a large pharmaceutical company, to establish its credibility with the NGOs whose focus was treating the patients afflicted with MDR-TB in remote areas of the world. Lilly's initial investment of $70 million was insufficient and their commitment was subsequently increased to $120 million. The case allows for discussion of questions including: What public value was created and how would it be sustained by Lilly's initiative? What were the risks of transferring pharmaceutical manufacturing technology to partners in a variety of countries? What were the motivations of the partners in this case? What could the ministers of health for each country do to make the Partnership more effective? What were the benefits and risks for a company of Lilly's stature to initiate and manage a partnership of this complexity? Were there lessons from the Lilly partnership that could be applied to other global health care challenges? HKS Case Number 1871.0
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