Genmor Pharmaceuticals’ Acquisition of Vascorex Corporation

Case Solution

Robert F. Bruner, Paul Simko, Mary Margaret Frank, Marc Goldstein, David Martin
Darden School of Business ()

In this case, have students identify and assess the merits of two factors that would have led a buyer-side analyst to conclude that an acquirer is a high-risk investment: (1) the allocation of acquisition proceeds by part of the company, and (2) the quality of the target’s intellectual property (IP) portfolio. The acquirer’s allocation of the acquisition costs of the target company differs significantly from that of the company’s previous transactions. A careful interpretation of each line item for both acquisitions provides information on managing the value that the acquisition is intended to achieve. An IP quality report produced by an independent PI consultancy also raises a number of questions that students need to identify. The main objectives of the case are (1) the introduction of IP quality concepts in relation to a company’s patent portfolio, (2) understanding the calculation bases for the purchase price allocations of companies in IP-intensive acquisitions and (3) compare and contrast the risk effects of portfolio acquisitions of drug candidates with established products.

We don‘t have the case solution, but we pay up to $50 for yours!

  • Set a reminder to receive an email after your university‘s case study deadline.
  • Upload your case study solution. We will review it for quality.
  • Get your money via PayPal or to your bank account.