Genzyme: the Leading Orphan Drug Company

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INTRODUCTION TO TECHONLOGY MANAGEMENT “Genzyme: the leading orphan drug company”- ASSINGMENT Prepared by: Josefin Elfner Lecturer: Nabil Ahmed Date of submission: 21st March 2012 Prepared for: Introduction to Technology Management (3 Credits) Grenoble Graduate School of Business (Marble Arch Campus) 17 Lex House, Connaught Place London, W2 2ES Student nr: A4030238 BIB 6B Table of Contents Introduction Page No. 3 How does Genzyme’s focus on orphan drugs affect the degree of competition it faces? How does it affect the barganing power of customers? 3 3 How does focusing on orphan drugs affect the types of resources and capabilities a biotech firm needs to be successful? Does the Genzyme’s focus on orphan drugs make sense? Do you think Genzyme has a long term strategic intent? Why do you think Genzyme has diversified into other areas of medicine? What are the advantages and disadvantages of this? What reccommendation would you offer Genzyme in the future? References 4 4 5 5 6 6 8 2 Assignment 1.0 Introduction Genzyme is a company that was founded in 1981 with a unique strategy to developed orphan drugs for people with rare diseases. Their risky strategy proved to be successful and in 2009 the company was one of the leading biotech companies in the world. To investigate their success five questions regarding the topic will be answered in this report (www.genzyme.com, n.d). 2.0 How does Genzyme’s focus on orphan drugs affect the degree of competition it faces? The Genzyme corporation chose a different path then many other biotech companies. The fact that the company wants to be independent from larger pharmaceutical firm is both highly risky but if executed correctly if can generate more revenue. The key idea was that if there is only a few companies that specializes in orphans drugs, there will also be

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