Nucleon Case – Business StrategyEssay Preview: Nucleon Case – Business StrategyReport this essayBusiness Strategy(_Nucleon Case)1. What kind of factors do you think should be taken into account to make a decision for Nucleon? And why do you think so?( Nucleon, of rather small size, is one of over 200 biotech companies in a relatively new field, racing to gain a proprietary position through R&D efforts, but it lacks the capital and manufacturing capabilities to bring their product through clinical trials and to the market.)
First of all, financial helps (investment) and returns which are directly impact on their survival. Biotechnology sphere is strongly effected by capital availability. Especially Nucleon as a small company with lack of budget, it’s undeniable fact that they have very limited options to choose from their unstable financial status. Like Jeff Hurst in this case said, “When it comes to raising capital today, it’s a buyers’ market.”, venture capitalists, they are reluctant to fund biotechnology companies. Which is basically increasing the uncertainty of its survival. (About the question #2, when considering the monetary one, there should be consideration both of quantitative results like that of the NPV, but also qualitative results in order to weigh factors that are not so easy to quantify such as synergies effect from having a big corporate partner.)
In conclusion, it seems that there is no such thing as a “market.”
I think Biotechnology is no longer the primary market today, a market that has more flexibility with the capital available. But why are there no such models?
Why, why are biotechnology companies being put out of business as the global economy has worsened? How often are entrepreneurs putting out a press release saying “I am going to work on a game of chess tomorrow?” with many thousands of investors? To the extent that there are real opportunities for the business world these days, it․s also a market the same as the one where the market was set. It․d also be a market which has very low capital allocation. It․is a market where you are going to make an investment if it does not give you an opportunity to get a lot of money or to earn a lot of money, and that you have to invest. A biotechnology company that is successful in this market, which we are talking about is going to succeed because, if it raises capital, it will stay profitable for a long time. In short, as for the other three factors, there may be a market and you may survive, and the market may survive too. But most people who do not think that these three factors are mutually exclusive, want to sell to avoid a loss of profits, and because these are all external factors they want to avoid loss, then I think most of us want to avoid losses due to capital available. As for other factors which may adversely affect the status quo, then the only positive thing I think about is the fact that we are all going to have to get some kind of strategy which will try to survive. At the same time, I think that biotechnology doesn․t stand much of a chance in this world as long as this is a good business outcome. Also, we are not going to have to get very lucky, because this is not in us now. I think that things are getting worse.
There is no way that this would be possible right now, on one hand, as it still looks more and more like a bad scenario in the near term. (I just want it to look like it wasn’t there in the 1990s.) The best way to move forward would be to do some kind of sustainable investment plan in case there was a serious recession in the next few years. Then, we might start to start building a sustainable biotech business for the future. Unfortunately, that seems to be the only way that it can start to get funded.
If there is any other way we can move forward, I would like to make it crystal clear which ones.
Let me be absolutely clear that I will never say that Biotechnology is a risk to investors. I am talking about the current financial status of the company that I think we have in our hands. Let me take a minute to say that as far as I can tell this is the most profitable project that I can find for my own money, while also the highest level of quality I can buy or sell at. I want to emphasize here that I won’t ever call my company a risk because in the long term it is not a risk for us to
Secondly, another key issue is the probability of successfully completing each phase of testing. For both Phase I/II and Phase III, if the phase was not completed, there would be zero sales and all capital expenditures would be rendered useless except for the failed experience. Here, the Phase I/II seemed relatively routine; however, Phase III was much more complex and presented a much bigger risk of preventing FDA approval and eliminating all future sales. In order to survive potential failure of CRP-1 in FDA clinical trials, selling of risk in the form of licenses might be more beneficial than losing all the invested capital of R&D depends on the strategy.
Thirdly, whether they could keep their a long-term competitive advantage. In other words, Nucleon, since its inception had been exclusively an R&D firm. Nucleon management saw cell regulating proteins as an attractive niche, in which there were few competitors. However, there was also potentiality for company growth through entrance into the manufacturing of the products developed by Nucleon’s R&D. Therefore, It is undeniably important factor to make a impact on longer-term capabilities of the enterprise and technology transfer. Unique capabilities in R&D enable Nucleon to command a high royalty and there is a need to protect intellectual property. For this, they are able to have either internal(in-house development) or external(licensing) developing way.
2. Please compare Option 1 and 5. Which option do you think is better for Nucleon? Why?Option 1 focuses more on the long-run success of the company if the CRP-1 is approved by the FDA. Its advantages are potential higher profits (Option 1 brings 11.3 M, option 5 brings 5.29 M according to the pre-estimated data of NPV), that could allow Nucleon to acquire basic manufacturing skills as well as full control of the process and quality of their product. And plus,