Vertex Case Study

1271 Words May 20th, 2012 6 Pages
Vertex R&D portfolio Decision
Joshua Boger, CEO of Vertex has to decide on two out of four R&D portfolios that are to be fully funded by Vertex and to decide on the fate of the other two portfolios i.e. whether to partner or hold them as backups.
In order to decide on the R&D portfolio, an objective quantitative analysis might not be suitable considering the high levels of uncertainities and consequently the risks involved in pharmaceutical research projects. It is important to have a qualitative analysis of the situation as a whole that includes Vertex’s own financial position, strategic implications, a quantitative analysis of its Portfolios with realistic estimations and a risk analysis of the portfolios.
1. Vertex finacial analysis
…show more content…
Another implication is that Vertex should invest in only those projects which can be supported through its own funding.
Strategic implications and issues
The strategic implications for Vertex attempting to fund and develop four drugs are as following:
1. It would allow Vertex to stablize its financial position
2. Gain a strong hold in the market as a critical drug developer
However, there are many issues associated with Vertex that it needs to counter before it can embark on its plan to fund and develop new products. First and foremost it needs to focus on its R7D spending and spread its capital across sales and marketing. Second, it needs a restructuring in its decision making process. The culture as understood is too loose to permit any decision to be taken. The organisation’s dependency on every individual’s opinion to make a decision is acting as a ‘red tape’ in disguise. These cultural issues unless resolved will give rise to conflicting interests between different divisions of the organisation e.g. R&D and sales and will eventually be detrimental to Vertex’s success.

Vertex SWOT analysis
Strengths Opportunities Strong research orientaion Promising prospects of products in pipeline
Adapatability to market Global market
Focus on innovation
Weakness Threats
Few products in the pipeline New entrants
Lack of credible partnership with big pharmas Competition to

More about Vertex Case Study