Millenium Pharmaceuticals Case

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The Lundberg deal in the near horizon was the talking point of everyone at Millennium Pharmaceuticals. But the decision of accepting the offer (though the financial issues weren’t discussed) or rejecting it was entirely in the hands of Millennium. One of the most important criteria on which the decision of alliance deal depended was the long-term and short-term strategy of Millennium and where does the deal fit in this strategy. The recent alliance deal with Monsanto has displayed the fact that Millennium was ready to focus on the new area of business – Agribusiness. But, the major long-term goal of the company was to become a large pharmaceutical firm one-day. The strategic steps of acquiring ChemGenics, speeding up the drug development process, “front-load” drug failure methods early etc were taken by the company illustrates their goal clearly. Secondly, the long-term impact of the deal on the company needs to be evaluated in detail. The ability of the Millennium workforce to carry out the additional tasks, the entirely new technology they need to build up along with the means and measures to make the technology available for Lundberg was equally crucial. And how will this technology be useful for the long-term growth of the firm must be considered. The focus of Research and Development of the firm should not be misdirected by this deal and their productivity should remain at the optimum in their area of focus and strength. Another area of pondering was the potential conflict between the Monsanto deal with the Lundberg one. Both the partners have many of their focus sectors overlapping making them difficult to stay in their respective markets neutrally. Secondary parameters which can influence the process of decision making can be the additional “benefits” like better resources, improved or more compatible technology and

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