Zerit

Abstract

In 2001, Jon Soderstrom, Director of Yale’s Office of Cooperative Research, found himself in the midst of a maelstrom of negative publicity. Yale's patent on the drug Zerit had become the target of international activists and campus protests. Protestors asserted that the patent and Yale's licensing of the pharmaceutical to Bristol-Myers Squibb (BMS) was preventing low-cost generics from reaching millions suffering from HIV/AIDS in South Africa. After a meeting between Soderstrom and BMS, BMS lowered the price of Zerit in South Africa and other developing countries and the crisis cooled. But student protestors and others continued to question university policy on the use of patents in the development of new pharmaceuticals, the close relationship between big pharma and universities, and the ethics and goals of university research.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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