Johnson & Johnson sued Amgen over their 14-year alliance to sell a blood-enhancing treatment called erythropoietin. The partners ended up squabbling over sales rights and a spin-off drug and could not agree on future products for the JV. Amgen won the right in arbitration to sell a chemically similar medicine that can be taken weekly rather than daily. What could these companies have done before forming the alliance to have mitigated the problems that arose after the alliance was formed? Why do you believe they may have avoided addressing these issues at the outset?

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