Case Study Of Genzyme

2814 Words12 Pages
1A. Describe your company’s business model (e.g. vertical, horizontal, hybrid, FIPNet, etc. (If the company has been in existence over 10 years, you may choose to focus on the recent 10 years; if your company has been in existence for less than ten years, please describe the same since inception). Since its inception in 1981, Genzyme transformed from a start-up firm to a fully developed biotech company. The company’s major focus has been on orphan drugs and with its FIPCO (Fully Integrated Pharmaceutical Company) model, Genzyme worked to build and integrate different parts of its value chain. For a long time, this direction worked very well for the company. Orphan drugs represented a niche market that had minimal competition, besides the fact that there was an increased prevalence of rare diseases around the globe and most of the affected people were willing to pay huge amount to improve their standard of living. This resulted in positive financial results for Genzyme, which has been ranked one of the most respected companies globally. Although Genzyme received tax incentives for its research and seven years market exclusivity, this strategy presented a risk in terms of long term sustainability and the company ventured into the development of other common drugs (Diversification). This provided the company with more alternatives and attracted more clients. By spreading its business in different areas, Genzyme was able to manage risks. But the company made sure there were no silos and maintained fluidity by allowing teams to take part in exchanges. Genzyme also participated in some vertical integration for specific areas of research. For example, it acquired Cell Genesys' manufacturing operation in California to support the grow... ... middle of paper ... ...t purchase of newly issued stock. This alliance significantly expands Genzyme's pipeline of innovative medicines for the treatment of genetic diseases and will expand its horizon in Rare Diseases. Additionally, the company is speeding its commercialization efforts by investing in early-stage innovative life science companies through its SanofiGenzyme bioventures. By providing these companies with Sanofi’s financial support and Genzyme’s technical guidance, SanofiGenzyme is helping companies develop innovative products for Sanofi in general. These activities clearly demonstrate that Genzyme is actively participating in rapid commercializing of innovative products. By implementing the recommendations provided in the earlier sections, the company will be able to leverage its financial growth in order to further expand its portfolio and ensure long term sustainability.

More about Case Study Of Genzyme

Open Document