Glaxo Italia S.P.A.: The Zinnat Marketing Decision

Published 01 Jan 1992
Reference 4386
Industry Pharmaceuticals
Region Europe
Prizes & Awards

Winner of 1996 European Case Awards in Finance


In September 1990, the financial controller of the Italian subsidiary of Glaxo must evaluate a financial analysis comparing two marketing strategies for introducing a new antibiotic into the Italian market. The task for the student is to evaluate and correct the discounted cash flow analysis.

Teaching objectives

Illustrate the application of valuation analysis to strategic alliances Exercise students' valuation skills, particularly in the identification of relevant cash flows, and the estimation of cost of capital Evaluate critically the use of different measures of investment attractiveness