The Eli Lilly MDR-TB Partnership: Creating Private and Public Value

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  • Product Description

    Abstract:
    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?

    Learning Objective:
    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?...

  • Other Details

    Publication Date: October 05, 2007
    Teaching Plan: Available with Educator Access
    HKS Case Number: 1871.0
    Case Author: Alan M. Trager and Jessica Droste Yagan
    Faculty Lead: Alan Trager
    Pages (incl. exhibits): 28
    Setting: United States
    Language: English
    Funding Source: Mossavar-Rahmani Center for Business and Government
    _year: 2000-2009
    _pages: 25+
    _geography: US & Canada
  • Warranty Information

    /review/1871.0.EducatorCopy.pdf, /teachingplan/1871_2.pdf

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