• Ally and Acquire
1. What is meant by the term Modular synergies in the context of a firm building a large office building involving plumbing, electrical, ventilation, foundation, engineering etc.
2. What is meant by the term Reciprocal synergies in the context of a large law firm representing U.S. clients that have business interests overseas (say South Korea) and possibly overseas clients (say from South Korea) needing legal representation in the United States.
3. The San Diego based biotech firm Amylin Pharmaceuticals developed a revolutionary diabetes treatment drug “Byetta”. In order to market the drug they turned to a giant firm, Eli Lilly who had the necessary resources to educate physicians who would then prescribe Byetta to their patients.
In this example, do you think that Eli Lilly would acquire Amylin in the future? What might be the nature of the “soft” versus “hard” resources involved in the relationship that would suggest an Equity Alliance or a Non-Equity Alliance or an Acquisition would be most appropriate? Clearly specify what resources of either Amylin or Eli Lilly you deem as “soft” and “hard”. Explain your reasoning and why these best suit the type of alliance you propose.