LifeStem Pharma is a pharmaceutical company based in the country of Jortan. It licenses the drugs that it manufactures to Uron Medicine, a foreign company, based in the country of Kolea. In which of the following ways can licensing help LifeStem Pharma in this scenario?

Question

Quizplus · Accepted Answer

DLicensing can help LifeStem Pharma by solving the problems of pricing a good across markets, as it allows Uron Medicine to adapt the pricing to the local market conditions in Kolea. It also guarantees that LifeStem Pharma does not risk a loss of core capabilities because the licensing agreement can specify what Uron Medicine can and cannot do with the licensed drugs, thus protecting LifeStem Pharma's intellectual property and core competencies.

LifeStem Pharma Is a Pharmaceutical Company Based in the Country