PP-212-E

(P-1119-E)

IESE Business School-Universidad de Navarra




Bioco
Preparation Sheet

1. Identify the key stakeholders that Moiss Arteaga should consider when making a
decision about the home delivery of Lempura.
2. Do you think Bioco should accept the proposal from Saint Gabriels Hospital? You can
formulate your answer according to the following (non-complete) list of criteria:
a. Expected impact on annual sales
b. Expected impact on operating margin
c. Expected impact on the stakeholders identified in point 1 above
3. Extra: Can you think of any alternative solution to the problem Monteagudo and Bioco
are facing?


Hint: Below is an explanation of how to calculate the regulated distribution margins (received by full-line wholesale distributors) and
dispensing margins (received by retail pharmacies).
1) A laboratory sells drugs to a wholesale distributor at laboratory retail price (LRP).
2) A wholesale distributor buys drugs from a laboratory at LRP and sells them to a retail pharmacy at wholesale price (WP), earning a
distribution margin (DistM) in each transaction.
WP = LRP + DistM; DistM = 7.6% x LRP (according to current regulations)
DistM = 7.6% x LRP / (100% - 7.6%)
3) A retail pharmacy buys drugs from a wholesale distributor at WP and sells them to the end user (or receives them from the
Spanish National Health Service [SNS]) at retail pharmacy price (RPP), earning a dispensing margin (DispM) in each transaction.
RPP = WP + DispM; DispM = 27.9% x RPP (according to current regulations)
DispM = 27.9% x WP / (100% - 27.9%)



Last edited: 2/1/13
Unauthorized copying or posting is an infringement of copyright.
T
h
i
s

d
o
c
u
m
e
n
t

i
s

a
n

a
u
t
h
o
r
i
z
e
d

c
o
p
y

f
o
r

t
h
e

c
o
u
r
s
e

O
P
E
N

D
A
Y
S

M
B
A

2
0
1
3
-
2
0
1
4

O
p
e
r
a
t
i
o
n
s

t
a
u
g
h
t

b
y

p
r
o
f
.

E
d
u
a
r
d

C
a
l
v
o

a
t

I
E
S
E

B
.
S
.