Napo Pharmaceuticals Case Solution

Moreover, the deal would provide Napo with $6 million in payments, which if not received, could make Napo go bankrupt by February 2005. The problem in the case is that, even after 2 years of negotiations, the deal has not been finalized. The people from Napo are not willing to give away their IP rights to the drug Crofelemer that they developed. This is because Napo aims to develop partnerships with other companies and also that this IP was its principal asset. PHI, on the other hand, was concerned that if Napo goes bankrupt, they would lose the supply of Crofelemer. Therefore, they insisted on acquiring certain IP rights for the drug. The root cause is that either side is not considering the problem from the other’s perspective.