Investing in Global Health, Botanical Extracts, Ltd

This case traces the establishment of Botanical Extracts (BE) as a manufacturer of artemisinin for treating malaria. The active pharmaceutical ingredient in artemisinin-based combination therapies (ACTs) for malaria in East Africa, artemisinin has made the transition from a traditional Chinese medicine to Novartis’ largest pharmaceutical product by volume. After providing background on the disease and its epidemiology and history, the case delves into the malaria eradication and control efforts of the past 50 years, with emphasis on treatment with anti-malarials. The case presents background information on the artemisinin industry, with emphasis on the World Health Organization  Novartis, artemisinin extractors, and Artemisia farmers. The case details the founding of BE, its role in the ACT industry, and the complex supply chain for ACTs from the cultivation of the raw material to the delivery of ACTs as well as the public private partnership that was driving the manufacturing and delivery of ACTs. The case ends by describing the challenges faced by BE in June 2008, asking how best the company should move forward.

Learning Objectives: To understand 1. the challenges of manufacturing necessary healthcare commodities for a populace that is unable to afford them, 2. how risk is distributed among actors in public-private partnerships, and 3. how investment in health commodities in developing countries can promote sustainable economic development.

The Global Health Delivery (GHD) Project, an interdisciplinary collaboration between Harvard Business School, Harvard Medical School, and Brigham and Women’s Hospital, investigates the management decisions behind disease treatment and prevention globally. The Global Health Delivery (GHD) Case Collection is a set of teaching case studies that are available for all at no cost online through Harvard Business Publishing, GHDonline, and The Case Centre.