Nucleon Inc Essay

918 WordsMar 3, 20114 Pages
1. What is the strategic decision Nucleon was to make? • Before Nucleon can begin clinical trials, its management must decide how and where to manufacture the product. Three options are being considered: 1) Build an in-house pilot plant 2) Contract production to a third-party 3) License the development, manufacturing, and marketing rights to a corporate partner. • The main issue is that Nucleon has to be able to find enough cash in-flow not only for the founding of the clinical trials for CRP-1, but also for the further development of the two new cell regulating factors and of the mammalian cells fermentation technology. Therefore, by choosing its manufacturing strategy, Nucleon should not only focus on the percentage of the…show more content…
- Mammalian cells fermentation. - Strong links with big pharmaceutical companies. - Other therapeutic applications of the CRP-1 molecule. - Two new cell regulators factors in early stage of development Threats. - Enormous cost of the drug development process. - Uncertain outcome of clinical trials. - Challenge of the patent by the competition. - Uncertain biotechnology patent law. - Competitors using alternative technology to develop drugs for the same diseases. - As the article mentioned, it is important for us to get our products into the clinic before others do. -Capabilities: When the company grew to 2 employees, there were about one third that had PhDs from scientific disciplines such as biochemistry, molecular biology, protein chemistry, and immunology. They were all strongly attracted to cutting edge, product-oriented research. • Threats: - Small size (22 employee) private held company - Weak patent position on the genetic sequence - Capital availability - R&D resources focused on the CRP-1 molecule -Technology was enormously complex, time consuming and expensive. -There were big risks in going ahead with development before the granting of a patent. -Although Nucleon was a leader in cell regulating factors, the company was not free from competition. -Other companies were developing drugs using somewhat similar technology. -Nucleon management believed that the company could not afford to market its products on its

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