Taking a Look at BioMarin

The barrier to enter Biotechnology industry is high. The first barrier is the extensive requirements in funding coming from heavy expenditures in R&D, along with the risk of little to no returns or even heavy losses if the drug fails to reach the market. Regulatory environment partly contributes to the barrier as the new drug approval process can be time-consuming with relatively 89% of failure to pass through. The second barrier is specialization. Companies with knowledge in obscure diseases will enjoy low threat of new entrant for there are few experts in the field.

As an investment manager from Sierra Capital Partners, Rodney Chu is interested in purchasing a 60% equity interest of Arcadian Microarray Technologies, Inc., a biotechnology firm. The bid is currently at $40 million. The Arcadian’s managers have optimistic projections for their firms’ performance over the next 11 years.

1. In no more than one-page, describe Biometra and the industry that this company is in.

Extremely risky drug discovery and development, lengthening development times which increase development cost, return on investments, and generic competitors.

With the huge diversity and changeability of human biology, it is impossible to imagine a reality without some mutations, changes, or issues in the organs and tissues of humans. Thus, it rightly follows that medications and pharmaceuticals have been created in an effort to counteract the various ailments and illnesses that people can experience. However, as time has gone on and these pharmaceuticals have become more and more high-tech, regulated, and trusted, they have also become incredibly commercialized. Worse still, medications have become incredibly expensive and can be unattainable for some people.

Founded by two mutual acquaintances and former staff members of California Biotechnology Inc. (CalBio), Lorin Johnson and Randy Hamilton set out to build a company specializing in a specific area of need, such as inflammatory bowel disease. Their search throughout the international landscape was focused on the chemical compounds that would be the foundation for therapeutic drugs that serve as a benefit to the management gastric disorders. As these compounds were discovered by way of research, with the intent to align and contract with already licensed agreements if the price allows for the newly formed company to take part. One such compound that fit the need for the company was found

Many scientist have tried, but it’s hard to replace what’s never been there. There have been many treatments that have been tried. A recent drug called Vimizim, which is made by BioMarin Pharmaceutical Inc., is very helpful for patients with morquio type A.(Reuters, 19) It had an improvement in energy and endurance, allowing the patients to better socialize, learn and function independently.(Reuters, 19) After 24 weeks of treatment with the drug, Vimizim increased patients' six-minute walk distance by 22.5 meters.(Reuters, 15) Vimizim has been given "orphan drug" status by the FDA, which means it will receive seven years of market exclusivity if approved.(Reuters, 19) An orphan drug treats diseases that affect fewer than 200,000 patients.(Reuters, 19) The main safety concerns of the drug relate to anaphylaxis and allergic reactions.(Reuters, 19) The panel said such side effects are consistent with other enzyme replacement therapies and that the benefits outweigh the risks.(Reuters,

Strategic Choices prevails in many companies’ setting to progress towards betterment. Somehow it comes with benefits and opportunity costs as well. Based on the case study for this week, Biocon India, a pharmaceutical company in India, is being faced with a strategic choice to proliferate but as mentioned, it comes with costs. Today this essay will scrutinize this case in terms of the strategic choices availability, the key groups involved and their relationship, the risks and rewards for growing Biocon, the primary structure of Biocon, the threats for such a structure, and my recommendation to the company.

company was one of the first to develop recombinant proteins using genetic technology. Two of its

Students should see that the risks of the biotech business are driving all of MoGen’s financial decisions: debt policy, dividend policy, and share repurchase program. Debt is relatively low because higher debt levels would result in debt rating decreases and therefore higher interest rates. Similarly, the company chooses to pay no dividends because of the risk of being forced to cut the dividend during the difficult times that invariably arise in a biotech business. Students should realize that a share repurchase program is a very good match for a biotech company like MoGen. The company can distribute cash to its shareholders when profits allow, but without making an explicit (debt) or implicit (dividends) promise to the market.

Although no treatment is known to completely halt the progress of MLT, there are ways to slow the progression of the disease. Since the disease pathogenesis of MLD is still yet to be understood, treatment can be tricky. Researchers are unsure when the ideal time of treatment is and are concerned with safety issues when certain therapies are applied. These therapies will target a specific part of the pathogenic aspect of the disease and some work better than others at different stages [12]. Though treatment options are available to individuals afflicted with MLD, there is currently no treatment that is able to completely stop the progression of the disease. There are currently three ways to slow the progression of MLD, they are the Enzyme replacement therapy, the stem cell based therapy, and gene

A balanced scorecard has four perspectives, Customer perspective, internal business perspective, Innovation and learning perspective, and financial perspectives. By using balanced scorecards, BIOCO knows what the customers needed is. It helps BIOCO to fulfill customers’ need better. For internal business perspective part, BIOCO can clear the corporate vision and strategy. BIOCO can adjust the strategy according to the pervious balanced scorecards. Also the balanced scorecards link everyone in the company and enhance the communications between each other. Meanwhile, Scorecards detailed the company’s business goals to everyone and guide every

Early in 1997, Genzyme Corporation began negotiations with Geltex Pharmaceuticals in an attempt to launch a joint venture to market Geltex's first product, RenaGel. Geltex was a young biotech research company with only two products in its pipeline, and they didn't have the resources necessary to launch RenaGel on their own. Genzyme, on the other hand, was a quickly growing company that experienced revenues of $518 million in 1996. They were attracted to the joint venture with Geltex because of the likelihood of increased earnings, as well as the joint venture being an excellent fit for Genzyme's specialty therapeutics. Genzyme also felt that the joint venture would lead to a similar deal in launching Geltex's second product, CholestaGel.

The book From Alchemy to IPO: the business of Biotechnology (2001) was a wonderful read. Although a little outdated (before the 2008 financial crisis), Cynthia Robbins-Roth was able to capture the thrill of starting the first biotech companies, the struggle to keep the companies afloat during down markets, as well as the elation of success when a company succeeds where others failed. I was astounded that any new company could survive the decade long march to putting their first product on the market, but Robbins-Roth provided direct quotations from the major investors that stuck with the market when most other investors had pulled out. These quotes, by the end of the book, gave me a much better understanding not only of the biotech industry but also the mentality of the major investors in the field. Although the sector is teeming with risky investments, if you educate yourself about the companies and understand the science involved, and be ready for the long-haul it is possible to lower your risk to reasonable levels.

Lilly BioVentures utlizied Eli Lilly and Companies network for its deal flow. Once a potitail start-ups was picked Lilly BioVentures would assess the risks and check the star-ups background. It also became a resource for its portfolio start-ups, which was a plus for start-ups entering in to a deal with Lilly BioVentures. The goal of Lilly BioVentures was to operate like a venture capital firm as much as possible. Schalliol emphasized: “Our goal was to make money, to beat the corporate hurdle rate. We described ourselves as financial investors in areas of strategic interest.” Many of the deal that Lilly BioVentures entered in to was though a syndicate, which brought more funds form other venture capital firms as well as different expertise for the start-up. Through these types of deals Eli Lilly and Company was able to gain competitive advantage over its rivals.