In September 2003, must Jeffrey Immelt, CEO of General Electric, review a final proposal for GE Amersham plc, the leading manufacturer of contrast agents in medical diagnostics to purchase. The case allows the evaluation of Amersham on peer companies, comparable transactions, and recent trading history. But the focus of analysis is on the robustness of the intellectual property rights of Amersham (IP). On closer inspection, the company’s IP position weaker than it seems, given the recent patents registered … Read more »

In September 2003, must Jeffrey Immelt, CEO of General Electric, review a final proposal for GE Amersham plc, the leading manufacturer of contrast agents in medical diagnostics to purchase. The case allows the evaluation of Amersham on peer companies, comparable transactions, and recent trading history. But the focus of analysis is on the robustness of the intellectual property rights of Amersham (IP). On closer inspection, the company’s IP position weaker than it seems, given the recent patents filed by competitors. The economic impact of these challenges can be tested IP flows in the case of company’s lead product, Visipaque for which is the case. Discounted cash flow analysis shows great sensitivity for the remaining years of effective patent life. An important lesson emphasizes the importance of due diligence research on a fixed IP position.
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from
Paul Simko,
Robert F. Bruner,
Mary Margaret Frank,
Marc Goldstein,
David Martin
Source: Darden School of Business
27 pages.
Release Date: 3 November 2004. Prod #: UV2528-PDF-ENG
General Electric’s acquisition of Amersham PLC HBR case solution

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