Bristol-Myers Squibb Essay Example for Free

Bristol-Myers Squibb EssayIn my opinion Bristol-Myers Squibb and Sanofi-Aventis seek a settlement rather than let the patent infringement case go to test because Bristol-Myers Squibb fail to disclose the oral side come up to with Apotex and its false certification to the FTC. Going to trial would let cost Bristol-Myers a great deal of money and severe penalties from the FTC. Bristol-Myers knew before hand that the FTC opposes agreements that certified the introduction of generic drugs which could be anti-competitive. Bristol- Myers was hoping that it could take on pursued a settlement with Apotex subjected to FTC approval and delay the pitch of Apotex generic drug until its patent expire. Bristol-Myers Squibb and Sanofi-Aventis should have attempted to pay Apotex to prevent it from launching the generic drug.It seems that BMS merely entered the agreement because they felt that Apotex could not get approval. BMS offered Apotex $60 million break-up fee if the agreement was rejected by the FTC (Baron, 2010). To offer such a high break-up fee meant that BMS was very certain of the denial by the antitrust. The deal offered was to prevent Apotex from launching their version of plavix. The scheme exerted by Sherman of Apotex was considered to be great judgment call on his part as well as the business. I believe he acted ethically in his strategy and negotiated terms that would benefit his business. He performed extensive research and found many distributors who valued to purchase clopidogrel bisulfate at very low and reasonable cost. On August 8th Apotex launched its generic Drug.Sherman states that, There should be no mistake that our decision to launch a generic of this blockbuster product at take a chance is a testament to our commitment to patients, consumers and taxpayers (Baron, 2010). Because he was a good business man he make sure that the product was on the market and sales were soaring. I felt that the FTC and the state attorneys general shoul d have rejected the agreements. Companies must conduct business ethically at all times and not rip off others because of greed. The price that Bristol-Myers paid was fair and it teaches other businesses not to practice business in the matter that they did. interposition from other parties can cause bad decisions to be made also in others opinion.Maybe BMS could have won if it wasnt up to the attorney general rejecting the proposal. Sometimes, some situations are best left up to the courts to decide. Bristol-Myers Squibb violated the deferred-prosecution agreement. The agreement stated that Bristol-Myers agreed to two years exemplary conduct and supervision from an self-governing federal monitor. Refusing to pay the money lead to even more question and apparent that they really wanted to defraud Apotex. In September 2006, Lacey instructed BMS to fire CEO Dolan because of his bad judgment.