Roche and Tamiflu: Doing Business in the Shadow of Pandemic

This case focuses on the accessibility of a drug, Tamiflu, produced by Roche, which could provide a treatment for pandemic flu caused by a lethal avian flu strain. As of July 2006, 232 cases had been reported, mainly in individuals with direct contact with poultry. However, there was still fear that the development of human to human transmission could start a global pandemic. In that situation, Tamiflu would represent the only therapeutic agent that could protect healthcare workers and help to contain the virus while research was conducted to develop other medications and vaccines.  

As described in the abstract, "Due to patent protection and a complicated production process with scarce raw ingredients, Roche had been the only producer of the drug. Partly in response to U.S. political pressure, in November 2005 Roche allowed Gilead to produce Tamiflu as well. Even so, it would take at least until late 2007 for Roche and Gilead to meet the orders of governments worldwide. The issue was a difficult one for Roche: What were the risks; what were the opportunities? If a pandemic occurred before sufficient stockpiles of Tamiflu had been built up, would Roche be held responsible? What steps, if any, should Roche take with respect to patent protection and production licensing in the shadow of a potential pandemic?"

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