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 take a bump in a project; tools for analyzing project bump; contractual arrangements in a fit dissemble that address risk share-out and entire project risk. 1.If Genzyme captures an saki in the RenaGel reefer venture with GelTex, allow for Genzyme be acquiring any investment options (that is, really 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 catch up withment of 27.5million for 50% of the JV. They would have to pay the corking upfront, and would not have the choice to abandon reenforcement in later acquaints, if for example RenaGel did not make it sometime(prenominal) stage one-third (a 35% risk) or if the FDA delayed its determination for an otiose year or two (delaying profits). By give the tria licle sum, they are committed to the project, whether it goes well or whether it goes poorly. 2.What are the depend sources of risk (risk drivers) that are embodied in this joint venture? Are in that respect specific quantitative characteristics of the convergence or the growths market that crapper be used to measure the projects risk?

The trace sources of risk for RenaGel and the JV involve completing the no-hit test trails and gaining FDA approval. For a product in stage III testing, there is a 65% chance it will gift the rest tests, received FDA approval, and make it to market. An extra elemen t of risk for the project is the timeframe i! t 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 competitor from otherwise products in development. However, RenaGel holds important patents and is the only absorber in the pipelines, minify this risk. The product life time is another source of risk, ranging anyplace 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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