However, a change in policy that destabilizes the exclusivity they enjoy would significantly affect their position in the industry. While concentrating on a niche market, the firm has developed several products that address various rare diseases.
Prohibition of entrant drugs to compete with their products creates a monopolistic market for them. Our breakthrough work in genetic engineering and recombinant DNA manufacturing has enabled the large-scale production of enzyme replacement therapies ERTs.
As mentioned in the case, their success even attracted the attention of others. By venturing into other areas of medicine, the company will also face a higher level of competition from other biotechnology firms.
The kind of resources needed will definitely be difficult to procure and a biotech firm needs to have access to relevant technology to be successful.
Patients can endure a long odyssey involving specialty doctors, tests, and misdiagnoses. How does it affect the bargaining power of customers?
Genzyme Corporation have a monopolistic advantage in their business strategy due to the monopolistic nature of their drugs market and a weak bargaining power of their customers.
Also, the orphan drug market is one where customers have very limited bargaining power, and this enables Genzyme to transfer the costs incurred to customers. Inspired by patients around the world Above from left to right: The market for orphan drugs is limited to small populations worldwide.
Competition of drugs for such a small market would not be viable. These investigational products are a new class of therapeutics based on RNA interference. These innovations may be considered from a management and scientific perspective.
When companies diversify, they strongly enhance productivity as a result of minimization of costs. Most of these patients are willing to spend any amount of money in order to improve their livelihoods. Apart from United Statesthe use of orphan drugs is predominant in Europe.
The biotechnology industry requires huge capital. This provides good prospect in terms of minimal competition. By establishing registries—large, often multinational databases to which physicians contribute clinical data on patients—for several LSDs, we help pool knowledge and improve understanding of rare diseases that would be otherwise difficult to study.
Learn more Learn about our LSD registries These large, often multinational databases of clinical data, aggregate knowledge to help improve understanding of rare diseases that would be otherwise difficult to study.
The business and strategic approaches of Genzyme Corporation represent excellent innovations. For instance, this company has been ranked among the most respected companies in United States since Orphan drugs are mainly targeted to individuals suffering from rare disease conditions.
This will be a major disadvantage to the corporation. Out of the rare genetic disorders out there currently knownonly orphan drugs have been successfully placed into the market. The advantages to this are that Genzyme could generate more revenue.
The Act allows better protection than a patent and gives Genzyme 7 years to develop more drugs and capabilities.
They should also focus on addressing the lack of diagnostic facilities for clinical trials of the drugs. However, in the pharmaceutical industry, orphan drugs can also mean smaller clinical trials, approvals take shorter time, lesser need for focus on large scale marketing and the freedom to have a more direct sales force, allowing the biotech firm to be more focused on its core competencies.
Drug development is associated with enormous costs and time, from the inception of research to the marketing stage. How does it affect the bargaining power of customers?this line of thoughts, the Genzyme Corporation represents the focus of the present endeavor, with emphasis falling on their focus on orphan drugs.
2. Thesis statement Orphan drug research and development is a laudable initiative as it seeks to find cures for the rare and devastating diseases of today. Genzyme Case Study: Table of Contents Genzyme is a biotechnology company that specializes in finding orphan drugs, which specifically cure enzyme deficiency conditions.
To offer a brief explanation, an orphan drug is a pharmaceutical agent developed to cure a rare, orphan, disease. The company aimed to avoid blockbuster drugs and focus. Genzyme Case Study Pharmaceuticals Company Orphan Drug Development Focus on enzyme replacement therapy Caters to a small market Rare, genetic diseases Potentially less than 5k people affected #6 out of Top Ten US based Biotechnology Companies in #8 most profitable biotechnology drug (Cerezyme) in Describe the key factors in Genzyme’s.
View Test Prep - midterm_case study_1_Genzymes Focus on Orphan Drugs from MATH at Technological Institute of the Philippines. Technological Institute of the Philippines Quezon City College of. The company should keep focusing on the orphan drugs market and expand to more countries in the future to domi- nate the market further.
Genzyme current success placed it in a powerful position where it can direct the market according to its. How does Genzyme’s focus on orphan drugs affect the degree of competition it faces? How does it affect the bargaining power of customers? For a drug to qualify as an ‘orphan drug’, a disease must only afflict less thanpeople worldwide.Download