A Question of Value


This case presents an evolving negotiation where SMA and PharmaSciences (pseudonyms) are attempting to acquire a small company Nose-Clear (also a pseudonym) that manufactures a homeopathic sinus congestion remedy. On paper, this looks like an extremely attractive acquisition because of the benefits that come from integrating the homeopathic remedy with the patented muco-adhesive. Such a product provides a clear competitive advantage as the product cannot be copied because of the patent protection, which is not possible with purely homeopathic products. At the same time, the product can be legitimized and proven effective with clinical trials. The market for congestion relief is over $1 billion worldwide, so the upside potential is huge. But what starts out as a negotiation on product becomes a negotiation about people.

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