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 happen in a project; tools for analyzing project guess; contractual arrangements in a fit ship that address risk share and entire project risk. 1.If Genzyme captures an saki in the RenaGel vocalize venture with GelTex, allow for Genzyme be acquiring any investment options (that is, satisfying 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 impartment of 27.5million for 50% of the JV. They would have to pay the corking upfront, and would not have the choice to abandon financial backing in later acquaints, if for example RenaGel did not make it ult stage cardinal (a 35% risk) or if the FDA delayed its ending for an otiose year or two (delaying profits). By paying(a) the trialicle sum, they are committed to the project, whether it goes well or whether it goes poorly. 2.What are the score 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 raft be used to measure the projects risk?

The trace sources of risk for RenaGel and the JV involve completing the triple-crown test trails and gaining FDA approval. For a product in stage III testing, there is a 65% gamble it will drop dead 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 the FDA to approve t! he 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, reduce 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: OrderCustomPaper.com

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