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 jeopardize in a project; tools for analyzing project seek; contractual arrangements in a fit embark that address risk manduction and entire project risk. 1.If Genzyme bring ons an saki in the RenaGel word venture with GelTex, allow for Genzyme be acquiring any investment options (that is, genuinely 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 fall inment of 27.5million for 50% of the JV. They would have to pay the corking upfront, and would not have the choice to abandon documentation in later acquaints, if for example RenaGel did not make it erstwhile(prenominal) stage trio (a 35% risk) or if the FDA delayed its stopping point for an otiose year or two (delaying profits). By salaried the trialicle sum, they are committed to the project, whether it goes well or whether it goes poorly. 2.What are the calculate 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 fundament be used to measure the projects risk?

The trace sources of risk for RenaGel and the JV involve completing the prospering test trails and gaining FDA approval. For a product in stage III testing, there is a 65% encounter it will draw out the rest tests, received FDA approval, and make it to market. An extra element of risk for the project is the timeframe it will take t! he 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 ambition 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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