1. Introduction
Company Background
Hemoglobal is a new entity merged by Behrstein and Maynard-Smith generating
world-wide annual sales of $3.2 billion. Behrstein was a major company in the supply
of blood collection kits to blood plasma collection centers in Germany and acquired
49% interest in the major hospital supply company in Japan. Maynard-Smith owned
20% of independent blood plasma collection centers in US and produced disposable
blood collection kits for the centers. Maynard-Smith was also involved in the industry
of processing blood plasma into blood plasma fractions.
Via the merger, Hemoglobal acquired the whole control of the supply chain from the
manufacture of blood collection devices to blood collection operations in its own
blood centers, and occupied a robust market share in both Germany and Japan. With
the well-established manufacturing lines and years of engineering experience,
Hemoglobal has obtained sufficient knowledge and capability to develop prototypes
of blood collection system into full-scale commercial product.
Hemoglobal aimed to strengthen its business in the blood collection industry by
adopting the advanced blood filtration technologies and to increase its market
penetration in foreign countries with its sufficient sales force and service efforts.
Business Strategies
Hemoglobal has currently adopted the traditional blood plasma collection system in
the blood collection centers, which required 2 hours to collect 575ml of blood plasma
from the donor. However, the blood plasma separation process using centrifuge is not
totally reliable in preventing the donor from receiving another donor s blood cell and
being infected with AIDs or hepatitis, and the blood collection process is quite
time-consuming. The company is looking for a safer and more efficient blood
collection technology to be adopted in its own centers.
After reviewing the latest blood filtration technologies, Hemoglobal is interested in
the license of YankeeTech s Ultrafiltration Membrane Technology. The YankeeTech
continuous filtration process could collect 624ml of blood plasma from the donor in
ISE5001 Post-game Analysis of Negotiation Exercise
Team 6 Hemoglobal B
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only 45 minutes, which dramatically increases the efficiency by 189%. Also, the
Ultrafiltration Membrane is able to separate the toxic molecules from blood. However,
YankeeTech was facing the challenge when launching the technology in US since
FDA approval is required before the technology could be manufactured and sold
commercially in US. Hemoglobal identified the possibility for reaching a win-win
situation: while generating more profit by adopting the YankeeTech technology in
Japan and Germany, clinical data could be collected to accelerate the FDA approval
process in US. Hemoglobal decided to negotiate with YankeeTech for the license of
the technology.
Licensing Goals
With the license of YankeeTech technology, Hemoglobal is expected to achieve the
following goals: