Tutorial4

CaseStudy
GenzymesFocusonOrphanDrugs
Profile

Specializes in production of treatments for rare diseases

Headquartered in Boston and acquired by French pharma giant Sanofi
in 2011
Mission to develop and deliver transformative therapies for patients
with unmet medical needs, providing hope where there was none before
Two core business Units : Rare diseases and Multiple Sclerosis
Customer commitment
Differentiation Strategy
 External Analysis
Rivalry
of Firms Competition only with the specialists

Threat of Threat of potential new entrants is

Potential low millions of R&D expenses,
Entrants lengthy FDA approval process
A drug produced under the patent
Substitut protection generally receives less
e threat from substitute products
Products
produced with different formula so
less substitutes

Suppliers
High bargaining power as they
supply highly specialized elements

Low bargaining power of buyers

Buyers due to differentiated product
offered
Discussion Question

How does Gensymes focus on Orphan

Drugs affect the degree of competition it
faces? How does it affect the bargaining
power of customers
How does focusing on orphan drugs
affect the types of resources and
capabilities a biotech firm needs to be
successful?
Why do you think Genzyme has
diversified into other areas of medicine?
What are the advantages and
disadvantages of this?