Kineret Case Study

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When looking at the biopharmaceutical it is hard to come up with an intrapreneurial opportunity since I am certainly no bio-pharmacists. After some thought and research one great opportunity that a company like SOBI could invest in, is an alternative dose for their most popular selling medicine Kineret. I say an alternate dose because, the current dosage that Kineret comes in is only 100ml syringes. Not all cliental need that large of a dosage, for example children require about half the dosage. With smaller dosage syringes, it could cost the consumer less and the medicine would not be just poured down the drain, since you cannot reuse a needle. Initially this seems like just an easy fix, but we must look at the level of effort and resources needed to determine whether this is a profitable move for the company. SOBI and it’s product Kineret serve both adults and adolescences. The company has seen an increase in children’s using the product by 25 percent. This number is expected to grow 15 percent, and all of these children do not need the 100mL that is filled for the adults (SOBI). Children taking the medication generally have a dose of 50mL or less. By decreasing this dosage the company could charge less …show more content…

For the new clinical trials we are looking at roughly 15 million, with the cost of new packaging for the first million units, to be 2.5 million and the cost of new marketing 100 million. The total is roughly 117.5 million dollars for this new venture. The potential growth rate is 25% with children taking Kineret. The company made 4.5 Billion dollars and with a 25% increase at a reduce rate of 1,500 per unit would make the company roughly 600 million dollars. 600 million dollars minus the cost of the new venture 117.5 million leaving the company with about a profit of 482.5 million dollars. This sound like it might be a venture worth looking

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