Genzyme/Geltex Case Study Questions

GENZYME/GELTEX CASE STUDY QUESTIONS Topic of Case: Future opportunities created by a current take in; identifying the drivers of feel in a project; tools for analyzing project insecurity; contractual arrangements in a fit danger that address risk share-out and entire project risk. 1.If Genzyme pay offs an saki in the RenaGel common venture with GelTex, allow for Genzyme be acquiring any investment options (that is, existent options)? Genzyme will not acquire any investment options if they acquire an interest in the RenaGel JV with GelTex under the currently proposed contract, a hump sum payment of 27.5million for 50% of the JV. They would have to pay the corking upfront, and would not have the choice to abandon support in later acquaints, if for example RenaGel did not make it past times stage ternary (a 35% risk) or if the FDA delayed its decisiveness for an otiose year or two (delaying profits). By paying the trialicle sum, they are committed t o the project, whether it goes well or whether it goes poorly. 2.What are the tale sources of risk (risk drivers) that are embodied in this joint venture? Are in that respect specific quantifiable characteristics of the convergence or the growths market that suffer be used to measure the projects risk?

The trace sources of risk for RenaGel and the JV involve completing the flourishing test trails and gaining FDA approval. For a product in stage III testing, there is a 65% chance it will extinguish the rest tests, received FDA approval, and make it to market. An extra element of risk for the projec t is the timeframe it will take the FDA to a! pprove the drug, with a 70% chance the drug would be approved in 1 year, 20% chance in two years, and 10% chance in 3 years. Other elements of risk include argument from otherwise products in development. However, RenaGel holds important patents and is the only absorber in the pipelines, step-down this risk. The product life time is another source of risk, ranging anywhere from 10 to 20 years. There are...If you want to get a unspoilt essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay