When Supply Is of Public Interest: Roche & Tamiflu
2009
This case presents the challenges faced by Roche to establish and maintain a functional supply network and stockpile for the antiviral drug Tamiflu, in order to prepare for the needs of a global influenza pandemic. While Tamiflu was the main available drug for seasonal influenza (Type A or B), it was likely to also be a valuable therapeutic tool against an influenza pandemic caused by influenza virus A, especially since there would be no immediate vaccine.
As described in the abstract, "Managing supply is particularly challenging for three reasons. First, demand for stockpile quantities is spiky and uncertain, and governments placing orders expect lead times to be short. Second, lead times for increasing capacity are long, as are lead times for drug production and encapsulation. Last, media coverage and press releases made by governments and other stakeholders increase the stakes, as negative media coverage may damage Roche's reputation with consumers, leading to lower sales levels for its products."
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When Supply Is of Public Interest: Roche & Tamiflu
Source:
Watson N Kopczak LR, Yadav P. When Supply Is of Public Interest: Roche & Tamiflu. Harvard Business School 2009. https://hbsp.harvard.edu/product/609061-PDF-ENG.