The health benefits of Tiger Nuts
Confidential Information Movartis Outside Attorney
You have been working as an outside counsel for
Movartis, a major firm in the pharmaceutical
industry, for a few years now, helping them with
various legal matters. Last week they have
approached you to help them with a slightly
different task from the normal patent
infringement cases that you usually do for them.
Movartis wants to obtain the raw materials to
manufacture a new special-purpose drug. The
drug, Infaidon (an Immune System Restorative
Serum), is unique to Movartis and is the only
substance capable of virtually insuring recovery
from infant AIDS (Acquired Immune Deficiency
Syndrome). The recent outbreak of infant AIDS
has been deadly, with 1,000 cases a year and
virtually a 100 percent mortality rate. The Food
and Drug Authority has approved the drug.
Although the product will not be very profitable,
the favorable publicity it will generate will
enhance the company’s stock price.
A major component of the drug is saponin, a
chemical compound that is extracted from the
rare tiger nut. This specific nut grows only on one
island in Indonesia; only 4,000 of the nuts can be
harvested each year.
An international exporter in Jakarta is in
possession of the 3,000 Indonesian Tiger nuts
that are available on the world market (the other
1,000 are unsuitable for pharmaceutical use).
The chemicals that could be extracted from this
number of nuts would be barely sufficient to
make enough Infaidon to cure the anticipated
cases of infant AIDS for this year.
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Movartis is concerned that Helix & Company, a
rival pharmaceutical firm, is also anxious to
purchase the 3,000 Indonesian tiger nuts. It is
not known why Helix wants the nuts. Vice versa,
Helix wouldn’t know that the essential ingredient
in Infaidon comes from the tiger nut unless there
has been careless talk among Movartis
employees or industrial espionage. Several
pharmaceutical companies have been interested
in exploring the chemical properties of the tiger
nut in recent years, given folktales of its
traditional medicinal qualities.
Movartis has therefore approached you to help
them negotiate a deal with Helix over the nuts
before either of the companies travel to Jakarta to
place their bid with the exporter.
This will be a difficult negotiation. In the past,
relationships between the major firms in the
pharmaceutical industry have been very guarded,
since there is a long history of industrial espionage
and suits and counter-suits for patent
infringement. In fact, two lawsuits are currently
pending between Helix & Company and Movartis.
Movartis has arranged for a meeting between
them and Helix. There is nothing illegal about you
conducting such a meeting and Movartis hopes to
be able, with your help, to develop a joint
proposal with Helix before approaching the
exporter. Movartis is willing to invest as much as
$ 1,500,000 to obtain the 3,000 tiger nuts.
Prepare for meeting with 1) the representative
from Movartis and 2) the representative and
attorney from Helix.