Biogen Analysis

7823 Words May 2nd, 2006 32 Pages
Executive Summary

Biogen is a global biotechnology company headquartered in Cambridge, Massachusetts. Biogen is engaged in the research and development of biopharmaceuticals for human health care. Its main product is Avonex, a drug for the treatment of Multiple Sclerosis. Eighty-two percent of its revenues in 2000 came from the sale of this sole product. Biogen is also involved in the research of drugs for psoriasis, Crohn's disease, congestive heart failure, and cancer. Biogen believes that its success is based on its employees, and its corporate culture reflects this belief. Its culture is embedded in its corporate values. These values consist of hiring the highest quality employees, flexibility in work, leadership, and
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Some 10% of the pharmaceutical market value is now generated by sales of biologicals - such as vaccines, insulin, EPO (erythropoetin), blood clotting factors, interferons and other cytokines. It is estimated by some (notably Ernst and Young) that over 50% of drugs on the market will be biological within 20 years. Another economic characteristic within the industry is the high cost of equipment. Much of the scientific equipment has to be on the cutting edge, making it quite expensive. Many small biotechnology firms are now setting up exclusive production and marketing relationships with the bigger pharmaceutical companies in order to have access to the latest equipment along with research and development capital support. Pharmaceutical companies, which traditionally have focused on chemical approaches to treating disease, have become increasingly supportive of biotech R&D in their own labs, in partnerships with biotech firms, and through acquisitions of biotech firms. Alliances in the biotech industry doubled to nearly 250 between 1998 and 2000. Biotechnology is definitely a growing field. The number of U.S. biotech companies has increased to over 1,500, while the number of employees has nearly doubled from 79,000 in 1993 to nearly 115,000 in 1999. The number of patents granted to biotechnology companies has tripled from nearly 3,000 per year in the early 1990's to more than 9,000 in 1998. The number of

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