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Dr. Narendran's Dilemma: Written Analysis and Communication - 1
Dr. Narendran's Dilemma: Written Analysis and Communication - 1
Narendran’s Dilemma
To
On
By
Indranil Hansda
Section – C
Letter of Transmittal
From
Indranil Hansda
To
Dr. Narendran
I have looked into the different options available that will help to build the reputation of Indian
Medical College [IMC] and give recognition to the Siddha system of medicine among other
systems by patenting and commercializing the formula. As a first option you can file the patent
and sell it for a onetime fee, or second filing the patent a pharmaceutical company can be asked
to manufacture the formula and the marketing can be done by the Institute. Another option is
that after getting the patent an agreement is arranged with an entrepreneur who will produce
and sell the formula and give royalties to the Institute. After analyzing all these options I have
Yours sincerely
Indranil Hansda
Executive Summary
Indian Medical [Siddha] College [IMC] has to take the decision that if it should file a patent and
commercialize the new formula that has been researched by a faculty member. The faculty
members at IMC are of the opinion that IMC should do such patents as it will help Siddha gain
The effects on profitability, reputation and recognition were analyzed and three options were
derived, amongst which it is recommended that IMC obtains the patent and then enter into a
contract with an entrepreneur who will manufacture and sell the formula and give royalties to
IMC.
[103 words]
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Contents
Executive Summary……………………………………………………………………………. 1
Situation Analysis………………………………………………………………………………. 3
The Dilemma/Problem…………………………………………………………………………. 4
The Options………………………………………………………………………………………4
Evaluation of Options…………………………………………………………………………... 4
Recommendation………………………………………………………………………………. 6
Action Plan……………………………………………………………………………………… 6
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Situation Analysis
Dr. Narendran has to take a decision on the research done by one of his faculty members
Dr. Ramkumar, who despite being a good practitioner and researcher, is also a very secretive
and selfish individual and has proposed to patent and commercialize the formula. Dr. Narendran
on the other hand has never been concerned about the financial gains but has always given
priority to developing the Siddha system. Thus it seems that till now IMC has only thought about
the development of Siddha and never considered the possibility of patenting their discoveries.
IMC has been an Institute that has been working towards educating more people in the Siddha
system of medicine and is dedicated towards providing medical care to the patients. IMC is also
inclined towards the social cause of serving people to the extent that they provided free
treatment and diet to the patients admitted in the IPD. It has also conducted special OPD’s
during outbreaks of diseases. IMC is also very keen at researching various aspects of Siddha
The Head of Departments’ at the Institute have concluded that in order to promote and
propagate the Siddha system they need to validate the therapies and drugs used with
quantifiable evidence, so that the other systems of medicine would acknowledge their practices.
They have also shown a key interest in the patenting of new formulas as practiced by other
systems of medicine and also want to commercialize them. Dr. Ramkumar has approached with
his formula soon after these conclusions were made, although he had developed the formula
before joining IMC. However at this stage IMC does not have the expertise to file a patent or to
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The Dilemma/Problem
Should Dr. Narendran go ahead with Dr. Ramkumar’s proposal and how should he
The Options
After obtaining patent IMC outsources the manufacturing of the formula to a pharmaceutical
IMC obtains the patent and enters into a contract with an entrepreneur who will pay royalties
Evaluation of Options
By obtaining the patent, IMC would be the first amongst the other three postgraduate Siddha
Institutes in the country to do so; thus it will gain a reputation for itself. This will also motivate the
faculty members who are conducting various researches in the institute, as it will also bring
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recognition to the researcher. The Siddha system will also receive some amount of recognition
among other systems of medicine as this research has quantifiable preclinical [animal toxicity]
and clinical test results. By gaining this reputation and recognition it is possible that other
systems of medicine might refer their patients to IMC; moreover the ‘cost effective’ and ‘no
surgery required’ features of this formula should itself attract more patients; it will also
encourage students to pursue postgraduate education in the Siddha system. Thus filing the
patent should create more awareness about the Siddha system of medicine in the country.
By selling the patent for a onetime fee IMC can earn a minimum of Rs 50,000 or a maximum of
Rs 75,000 and will not have to do any other activity for commercialization and can concentrate
on providing medical service to its patients. However, it is not clear as to how much exposure
this formula will get to the other systems of medicine. Thus this option cannot be considered to
be the best.
If IMC does the marketing themselves, then the exclusivity of the product will remain with the
Institute. According to the profit projection, IMC should make at least Rs 58,000 in 5 years and
probably it will also be able to gain some amount of exposure to the other systems, as it is said
However, IMC will have to setup a marketing team for this purpose by hiring new people, as it
does not have anyone in the Institute with any prior experience of marketing. Thus it seems that
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Entrepreneur sells formulae and IMC earns royalties
After getting the patent if IMC enters into a contract with an entrepreneur, then it has been
estimated that IMC will earn at least Rs 55,200 in 5 years and it is also estimated that 20% of
sales might come from other systems of medicine. In this arrangement IMC does not have to
put in much effort, but will earn considerable amount of money and Siddha will also gain
considerable exposure in the other systems of medicine, which will help to popularize Siddha as
a quantifiable practice of medicine. However, IMC will have to find for itself a trust worthy
partner for this venture, for which it will have to conduct back ground checks of the interested
parties and ask for references before entering into a contract. IMC could probably use the help
of the other Institutes in the State for this purpose. Thus it seems that this option is the most
The Recommendation
File the patent and enter into a contract with an entrepreneur who will pay royalties on sales of
the product.
Action Plan
The funds required for this purpose can be taken from the development funds for now,
which can later be reimbursed with the money earned by commercializing this patent.
Issue a tender after the patent has been obtained, so as to enter into a contract with
interested entrepreneurs. By issuing a tender it is also possible for that IMC might be able
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to receive more than 6% as royalty, which will depend on the negotiations.
Ask help from other Siddha Institutes if required, to find a suitable partner.
[1048 words]