The XenoMouse: The Case of Where the Business Should Go
1) What are the pros and cons of Abgenix collaborating with a partner on ABX-EGF in comparison to going solo?
A partner to the business brings an advantage of providing additional capital, resources, and other material to develop the ABX-EGF drug program, all the while limiting the amount of risk that Abgenix takes on. For example, the drug may not develop correctly and fail in trail(s), or possibly the turns out to be unsuccessful, this after Abgenix provides a large amount of their limited resources. It’s also a benefit that the partner will have complementary knowledge, assets, and resources to market, sale, test, and develop the drug for market and/or testing. A significant hurdle is the testing phases and other regulation under the FDA Center for Drug Evaluation and Research (CDER). When the drug demonstrates its effects and the company moves forward, or makes required changes, it develops experience and knowledge that will be needed for future drug compounds. A mosaic of studies have further shown that collaboration can be a powerful tool towards higher achievement and increased productivity since collective efficacy can significantly boost groups’ aspirations, motivational investment, morale, and resilience to challenges. It’s noted that there is presence of competition in the market (AstraZeneca and Genetech), producing similar products or are in the development phase of copying the cancer fighting techniques. With that being said, adding a partner further assists Abgenix in pushing the ABX-EGF to market quicker, which decreases various costs to adapt to sudden changes. Overall, it’s in the best interest for Abgenix to join with a partner to increase the chan...
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...ncies are focused in. Both decisions involve solving the short term cash requirements and other resources, which will, no matter the choice, reduce the commitment of its personal assets and free up time to focus on other prospects or areas in the business.
Further down the road, Abgenix has to gain access to, or develop the areas that it lacks, such as the process of regulation processes, marketing, and selling/providing the drugs to the market. To gain these processes, or adapt faster, the joint venture would allow it the access to new capabilities of the firm they partner with. Licensing the drug to another firm, on the other hand, doesn’t provide the number of benefits. However, the concerns of partnering with a firm can lead to exploitation or copy/take away something proprietary, competency, technique or technology, which will harm future long term gains.
...ll help the company in selling generic drugs and provide affordable medications to its customer base.
Nucleon is a small biotechnology start-up with a very promising potential product (CRP-1), which is also the first product that Nucleon is planning to go into the clinic market. Nucleon has reached to human clinical trials phase with its product and it has no manufacturing facilities that satisfy the guidelines for these clinical trials and testing. Nucleon is on the verge of making a critical choice of manufacturing strategy, which will affect Nucleon’s survival in the intense competition in the long haul. Nucleon management is aware of the facts that they have a limited budget to start with, the financial environment in biotechnology is rapidly changing and establishing the safety and efficacy of products like CRP-1 is complex, time-consuming and expensive; that’s why they want to evaluate risks and rewards of each manufacturing strategy before making their final decision.
I hope to develop the career of an academic oncologist and the aspect that has captivated me the most is that of drug development. Any major change in oncology, at least for medical oncologists involves the invention and discoveries of new drugs and every single one of these has to be tested in the setting of a phase I trial. In order to develop a successful career as an academic oncologist, one needs to be able to conduct well-designed clinical trials and to be able to publish reproducible respected genuine papers. I also strongly feel that quality is more important than quantity in terms of final outcome of all the efforts and work. I hope to be working in this field in the future and be able to carry out my ideas and implement the same and in the process make some contribution in the care of the cancer patient.
Threat of new entrants is relatively high. Companies forming alliances are potential rivals. Even if earlier such company was not considered to be a threat, after merging with some research and development company or forming alliance with another pharmaceutical company it would become a rival to Eli Lilly. The threat is however weakened by significant research and development costs necessary to successfully enter the business. Eli Lilly’s focus on a relatively narrow market of sedatives and antidepressants weakens the threat of new entrants, but other products that form lesser part of company’s sales such as insulin and others are exposed to high threat of new entrants. The need of obtaining certificates and licenses also weakens the threat of new entrants. Discussed above leads to the conclusion that threat of new entrants is medium.
The point at which they decide to produce will rest on their own adversity of revenue, risk and effort. The company also needs to know the price elasticity of the curve: the greater the price elasticity, the more a company such as Pfizer will struggle to establish high prices and a high volume. Although monopolies appear damaging at times, there are arguments that they are an advantage to society. Monopolies in the pharmaceutical industry drive companies to pursue research and development (R&D) efforts to gain new patents. According to a 1992 study, among the 24 U.S. Industry groups, pharmaceuticals dedicated 16.6% of their amounts to basic research, while all other industries averaged at 5.3% (Sherer 1307).
For a drug to get to market it must go through several stages of research and development (Abbott and Vernon). Starting with discovery research, preclinical testing on animals, three phases of clinical trials on humans, and finally FDA (Food and Drug Administration) approval (Abbott and Vernon). Out of several thousands of drugs only a few will make it to the FDA approval stage (Abbott and Vernon). Testing is a highly regulated, time consuming, and expensive process. From beginning to end the process can take fifteen years and less than one of five compounds will make it to market where it is still not guaranteed to succeed (Abbott and
Other companies cannot replicate the drug and therefore they are forced to either wait until the patent expires or they must find an alternative drug that carries out the same purpose.... ... middle of paper ... ... It is clear to see that there are many pros and cons to patents in the pharmaceutical industry.
It will allow more opportunities for the Merck & Co. to innovate from. Not all great ideas are being generated within Merck and this strategy will allow us access to those other great ideas. Open innovation will help Merck jump back in the lead of developing the larger number of new pharmaceutical drugs. They have already dipped their toe in with the “reverse-merger” with Schering-Plough which was great way to introduce the idea to the organization and culture within Merck. This course of action is the most ethical because it allows the company to maintain its core strategy of differentiation. It will also help continue the reputation of being innovative by supplying more ideas to work with within the R&D department. It will create more possible drug choices for consumers and profits for the company to enjoy, especially shareholders. An external idea could help produce the next Nobel Prize for the R&D
For commodity generic drugs, Teva has an opportunity to expand its core business into emerging markets, but there it will have to face institutional voids because such markets are driven by physicians and both physician and other people are not aware about the effectiveness of generic drugs. To cope with the challenge of institutional voids Teva have to look for some competent small pharmaceutical firms for acquisition and some big firms for the joint venture. For changing the perceptions of people and physicians, Teva will require to run marketing campaigns and direct approaches to physicians to develop a market for their products.
If you ask people to name one of the most important technologies of the twentieth century, one of the answers would most certainly be the computer. A computer, however, is not a technology all to itself. Many other technologies went into the modern home computers of today, including the mouse. Douglas C. Engelbart, a worker at the SRI (Stanford Research Institute), invented the mouse in 1964. However, the process of the invention of the mouse was not instantaneous and without effect on the realm of computing and society. In this paper I will be examining the problems that had to be overcome and the technologies that had to be invented for the mouse to become a reality. It also analyzes the impacts it has had on society and the computer industry.
Scherer, A. (2012) ‘M&A in Big Pharma: Holy Grail or Buying Time’, Contract Pharma, 21 Mar [Online]. Available at: http://www.contractpharma.com/contents/view_experts-opinion/2012-03-21/ma-in-big-pharma/#sthash.NnrBSo3O.dpuf (Accessed at: 15 December 2013)
10. Collis, David, and Troy Smith. "Strategy in the Twenty-First Century Pharmaceutical Industry:Merck&Co. and Pfizer Inc." Harvard Business School, 2007: 8-12.
Before the alliance the two firms were in totally different market and they were also in different country but the industry was of same type. Both of the firms were aware about their future plan and lacking.
The topic under review is strategic alliances. This particular form of non-equity alliance between firms in the same industry (competitors) is becoming an increasingly popular way of conducting business in the global environment. Many different reasons of why such alliances are occurring have been recognized. These include: the increasing globalization of the world's economy resulting in intensified global competition, the proliferation and disbursement of technology, and the shortening of product life-cycles. This critique will use Kenichi Ohmae's viewpoint on strategic alliances as a benchmark for comparison. Firstly, a summary of Ohmae's article will be provided. Secondly, in order to critique Ohmae's opinion, it will be necessary to review other literature on the topic. Thirdly, a discussion of the various viewpoints and studies, that have hence arisen, will be discussed in detail. Finally, conclusions will be drawn with implications for companies operating in today's global environment, together with suggestions for future research on strategic alliances.
In recent years, the price of research and development has skyrocketed, making it very difficult and expensive to introduce new drugs into the market. Companies are spending more than ever from their profit of sales revenues into research and development. Now looking at it from this point of view, a newly merged company will have such high profit and revenue that they will have the opportunity to spend as much as they want on research and development, without money being an issue or a concern. Technology is improving by the day, and with the merging of companies-these companies will join technologies and join their research making their progress advance exponentially. Our company- Verduga Inc.-has wasted a lot of money recently on research and development. If we were to merge with Coronado-Salinas Inc., we would see a vast increase in the amount of capital available to us to use in research and development. The downside is that research and development sometimes turns out to be just research. Big companies can get overconfident and after getting a couple of results they might get too compulsive and overspend in research and development.