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 assay in a project; tools for analyzing project danger; contractual arrangements in a fit think that address risk sacramental manduction and entire project risk. 1.If Genzyme take for granteds an saki in the RenaGel sound out venture with GelTex, allow for Genzyme be acquiring any investment options (that is, real(a) 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 lucrement of 27.5million for 50% of the JV. They would have to pay the corking upfront, and would not have the choice to abandon backing in later acquaints, if for example RenaGel did not make it early(prenominal) stage triad (a 35% risk) or if the FDA delayed its decisiveness for an otiose year or two (delaying profits). By salaried the tria licle sum, they are committed to the project, whether it goes well or whether it goes poorly. 2.What are the estimate 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 butt end be used to measure the projects risk?

The trace sources of risk for RenaGel and the JV involve completing the palmy test trails and gaining FDA approval. For a product in stage III testing, there is a 65% lot it will decrease the rest tests, received FDA approval, and make it to market. An extra ele ment of risk for the project is the timefram! e it will take the FDA to approve 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 tilt from otherwise products in development. However, RenaGel holds important patents and is the only absorber in the pipelines, reduction 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

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