The case seeks to identify some of the issues encountered in the development and growth of a family-owned firm in the pharmaceutical business in Lima, Peru. Having overcome the initial challenges of its establishment, the company has become a visible and viable competitor in the Peruvian market and is poised to expand in cross border markets by exploring the prospect of a strategic alliance with a suitable pharmaceutical firm or a chain store in these markets. Senior management must evaluate the issues associated with an alliance that entails manufacturing for foreign companies. Copyright © 2013 Inderscience Enterprises Ltd.