Genentech - Roche
Market Analysis
Overview of Genentech
Evolution of Bio tech
-Dr. Richard Scheller- President of R&D at Genentech.
-Genentech, bought by Roche Group, looking to revolutionize personalized medicine.
-Heavy focus on stage II and stage III of biotechnology medical research.
-Looked at core capabilities of
"strategic balance between
generating novel therapies and
pursuing further commercial
discoveries."
- Commercialization of scientific bio tech is an attractive and powerful business model.
- 3 main components of biotechnology:
1. Disruptive technology
2. Venture Capital
3. Public equity markets
- Most all breakthroughs and research were at universities and institutes, but lacked funding commercialization skills.
- Partnered with venture capitalists created "biopharmaceuticls" or "prescription drugs."
Genentech
History
- Founded in 1976. Recognized the potential in newly discovered recombinant DNA.
- Genentech's first aim was to "leverage the newly discovered rDNA technology to develop a new generation of therapeutics.
- Focused on critical medical conditions in oncology, immunology, and tissue growth and repair.
- Incredible growth and profit potential. In 2008: $13.4 billion in revenues. Just 3 years earlier, in 2005, had $6.6 billion in profits.
Birth of Biotech
Industry Landscape
- Pharmaceutical uses plant and chemical elements to make medicines that cure or manage diseases, and protect us from infection.
- Biotech involves the use of cellular and bio molecular processes for health care applications.
- The "specificity of DNA" allows biotech to "address specific medical needs with fewer side-effects.
- The rearranging and manipulation of this DNA allows this new technology to be very controlled and directed.
- 1980-First real patent for Biotech by U.S. Patent Office for recombinant DNA.
- Essentially, biotech is revolutionizing drug development, design, and creation of prescription drugs.
Biotech Growth and Genentech competitors
Industry model
Research & Development pipeline
Quadruple Bottom Line
People
- Universal Health Care
- Research Volunteers
- Treatment Efficacy
Planet
- Commercial production
- Genetically modified organs, plants and animals
Profits
- 25% R&D largest of any industry
- Return on equity
- Increasing shareholder value
Politics
- Comparative Effective Research, US Congress 2009
- BioGenerics
- BioSimilars, 2010
Bio-pharmaceutical Key Success Factors
- Product
- Pipeline Size
- Breakthrough Research
- Financial Resources
- Capital Investments
- Private and Public
- Political Climate
- Regulatory Compliance
- Perpetual Patents
- Industry Infrastructure
- Personalized Solutions
- Channels of Distribution
- Human Resources
- Entrepreneurial
- Commitment
- Team oriented
- Networking
- University Partners
- Outsourced Teams
- BigPharma
- Company Climate
- Mergers and Acquisitions
- Globalization
Genentech
5 Forces
Potential Entrants
- Individual Researchers
- VC groups
Suppliers
- Universities
- Biolabs
- R&D tech
Jason Watters & Miguel Vasquez