MedImmune Case Study
Background
MedImmune is dedicated to helping patients live better lives through advances in science and medicine. Hundreds of thousands of patients have benefited from their products, which are designed to treat or prevent infectious diseases, cancer and inflammatory diseases (Wikipedia, 2012). Their extensive research and development efforts are focused on these same areas.
MedImmune acquired FluMist when it purchased Aviron in 2002. FluMist is Aviron’s lead product for development and commercialization, it’s a live virus vaccine delivered to the patient as a nasal mist for the prevention of influenza (Wikipedia, 2012).
Key Issues
The board of MedImmune believed that Aviron was a good strategic fit but didn’t
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The problems can be grouped into two categories: problems with estimating cash flows and problems with estimating discount rates. How long will it take to get a positive earning? What number should the discount rate be?
Secondly, although the company took a long time before the introduction of the vaccine FluMist, the nasal spray flu virus has been unable to obtain FDA approval for the vaccination of young children and the elderly. FluMist also exists the problem of poor sales and difficult storage. MedImmune paid $ 1.5 billion in 2001 after the acquisition of California Aviron in launching of FluMist. At that time, MedImmune predicted that FluMist would become a "blockbuster" drugs. But in fact, FluMist is quite poor performance on the market. Poor estimation on potential customers and market growth should be the main reasons for the failure.
Recommendation
The MedImmune Company expected that the transaction will be completed in the first quarter of 2002. The transaction will write off the company's 2002 earnings levels and reach breakeven point in 2003; then the level of its cash surplus will significantly grow (MedImmune, 2001). But from both MedImmune and Avirons’ statement of operations we can see that huge gap of negative earning will not be covered in 2003. From the news afterwards we know that according to the agreement reached by the two companies, MedImmune used 1.075 shares of outstanding stock in exchange of one
In a 1998 study involving children published by the New England Journal of Medicine showed that the intranasal flu vaccine increased antibodies in the bodies of its recipients, and decreased the likelihood of flu. Results showed that the vaccine was more effective than placebo. (1) A 2012 study published in the Journal of Infectious Diseases showed that flu vaccines “was associated with a three-quarters reduction in the risk of life-threatening influenza illness in children.” (2)For older adults, however, flu vaccines may have a lower efficacy—but they still prevent 61.2% of flu hospitalizations.
How would Ed’s blood help protect him from a foreign invader such as the one now in his system?
In this task I’m going to analyse the figures on cash flow that I created in P3 and justify why you think the business might have problems also provide range of solutions.
EEC calculated the amount of time involved the anticipation of its cost ($3 million). The timeline in recovering their cost of investment ($2 million) initially for the foundation of this investment any profit made in the future of this investment will be justified as a profit for the company. If EEC can anticipate a fast return on its investment it is a profitable wise decision in making the investment financial, it is considered to be an easier way of formulating investments financially. On the basis of one year all cash flows is added together equal to the sum of $2 million originally invested, then it is divided by the annual cash flow of $500,000. The calculation of the payback period would equal four years. After this time frame any financial proceeds will be considered profitable for the company. I conclude that the timeframe is adequate in comparison of the investment in this worthwhile investment financial venture for the company.
Seasonal influenza is a major cause of mortality and morbidity in the industrialized world. The United States alone averages more than 23,000 influenza-associated deaths annually (Cortes-Penfield, 2014). Everyone is given the option to receive the flu vaccination each year. The vaccine is offered in health care facilities, clinics, and pharmacies around
Everyone is given the option to receive the flu vaccination each year. The vaccine is offered in health care facilities, clinics, and pharmacies around North America.
The Situation/Challenge: According to the Centers for Disease Control and Prevention (CDC), the number of influenza (flu)-associated deaths in the United States ranges from a low of about 3,000 to a high of about 49,000, annually (CDC, 2010). Vulnerable populations—those with a compromised immune system, elderly, very young children, and critically ill—are especially susceptible to the influenza. (Poland, 2005). Pre-exposure vaccination is the most effective method of preventing influenza and influenza-related morbidity and mortality (Poland, 2005). However, flu vaccination is frequently contra-indicated for the vulnerable
Each year 6-20% of U.S. residents are infected by influenza and more than 200,000 people are hospitalized due to complications (Klepser, Corn, Schmidt, Dering-Anderson, & Klepser, 2015). Influenza has a huge impact on not only the health of our nation, but economically, as well. Studies show that the single most effective way to prevent the spread of influenza is to vaccinate. The CDC recommends that all children over 6 months old to be vaccinated against influenza yearly (CDC, n.d.). Seldom have there been medical advancements that have impacted the health of billions of people. One such important medical advancement is the invention of vaccines. At the end of the 20th century, the CDC published its list of
This memo outlines ways to address the recurring shortages of the influenza vaccine that occurred in the United States between 2000 and 2004. There were two important contributing factors to these vaccine shortages. First, there has been a significant reduction over the past few decades in the number of companies that choose to manufacture the flu vaccine. Second, the government has taken a laissez-faire approach to managing the distribution of the vaccine, even in times of shortage. In order to fully accomplish our overarching goal – to
One of the few cures to the disease was a vaccine created by teams of doctors at Mayo Clinic in Rochester. In partnership with those at Mercy hospitals in Mason City the vaccines developed weakened the germs in the disease at the base. The only problem facing this vaccine is that it was not a preventable vaccine, but rather you had to catch the flu before being treated. This often caused many problems because at the time of infection it was nearly too late for survival. By the 1920’s the largest influenza epidemic in United States history had come to an end. Not real cure was ever found, and the cause of the diseases spreading still remains a mystery in
The counselor did not treat Mary without gaining consent from her mom. the case states that Mary;s her mother gave legal permission for Mary’s treatment with the same limitations that the counselor made which was that he would maintain the confidentiality of Mary at all time. The counselor could get into lots of trouble if they were to begin seeing Mary without a consent on file.
The President of the United States, Donald Trump, warned the public that the flu shots are a scam of Big Pharma used to make people sicker and rob their money.
Star Appliance is looking to expand their product line and is considering three different projects: dishwashers, garbage disposals, and trash compactors. We want to determine which project would be worth doing by determining if they will add value to Star. Thus, the project(s) that will add the most value to Star Appliance will be worth pursuing. The current hurdle rate of 10% should be re-evaluated by finding the weighted average cost of capital (WACC). Then by forecasting the cash flows of each project and discounting them by the WACC to find the net present value, or by solving for the internal rate of return, we should be able to see which projects Star should undertake.
The New Business Development division of DSM is faced with the decision of whether it should continue to develop the Stamypor resin. The product is already near the end of the second stage of development. If NBD’s management board approves this product to continue into the third stage, it will require €16 million to be invested for equipment. However, if the Stamypor
MediSys planned a launch of IntensCare which is a new remote monitoring system for the use in hospitals’ intense care units. This is a major launch for the company because it is a $20.5 million investment which is the largest investment for the company. MediSys Corporation is facing many external problems along with experiencing problems internally trying to finish the product by the set deadline. The company is having many issues. The issues consist of dealing with the software development, failure to communicate effectively, and lack of motivating factors.