Emphasises on Mission 2020 of Genentech

1. Genentech 2020
“Matching Customer’s
expectations for innovative
future”
Shoeb Ahmed Ilyas
Health Care Consultant

2. INTRODUCING GENENTECH
 Genentech is a leading biotechnology
company that discovers, develops,
manufactures and commercializes
pharmaceutical products to treat
patients with significant unmet medical
needs.
 Genentech commercialize multiple
biotechnology products and also
receive royalties from companies that
have licensed our technology.

3. Age & Size
 Genentech was founded more than 30
years ago, in 1976, by the late venture
capitalist Robert A. Swanson and the
biochemist Dr. Herbert W. Boyer
 1,100 researchers and scientists and
125 post-doctors
 198,300 employees
 Main players: Amgen, Genentech,
Biogen Idec, Genzyme.

4. Mission Statement
With high professional knowledge
and commitment, use human
genetic information to discover,
develop, manufacture and
commercialize medicines to treat
patients with serious or life-
threatening medical conditions.

5. Vision
To create a free
genetic hereditary
disease environment
through scientific
discovery and
production of
pharmaceutical drugs
acting in the DNA
level for correcting of
mutations causing
genetic originated
cancers and other
genetic diseases.

6. Diagnosis of the Main Products
Genentech’s is among the world's
leading biotech companies, with
multiple products on the market
and a promising business
development pipeline.
Genentech’s main products are in
Oncology, Immunology,
Disorders of Tissues, Growth
and Repair, Neuroscience and
Infectious Diseases

7. GENENTECH OVERVIEW
Main Revenue streams
 Product sales-90% s
 Royalties-9%
 Contracts-1%
Main Product lines
 Avastin – 24%
 Rituxan – 23%
 Herceptin-16%
 Lucentis-4%
 Xolair – 3%

8. Characteristics of Bio-Tech
Market
 Intensively dynamic and innovative
 Medical and social achievements.
 Unlimited life cycle, in Business for life.
 Life cycled interrupted/replaced by more
innovative technologies of recent research
achievement.
 Final solution for genetic cause based
diseases.

9. Genentech’s Business Strategy
Corporate strategy
 Growth by concentration
 capturing market share
 Repositioning the product through
new indications
 Growth by diversification
- Expand consumers’ base
- Shared Technologies
Business unit strategy
Focus on oncology
Functional strategies
 Marketing (19%)
 R&D (24%)
 Strategic collaborations management
 Regulatory compliance
Strong state based strategies to
stimulate industry growth.
 Economies of scale due to
geographical clustering

10. Genentech’s Business Model
Ref- http:// mackcenter.wharton.upenn.edu/biosciences

11. Genentech’s Customers

12. Anticipation of Future-2020
No one can reliably predict Genentech
emerging life science technological
biomolecules may be successful, or fall
short of expectations—or whether the
customers will accept or reject these new
biomolecules for given treatment. What we
guess for certain is that multiple futures are
possible. So how Genentech will describe,
anticipate and plan this possible futures?

13. Genentech-2020 Approach
 Genentech team must monitor
Biotechnology industry trends, winning and
losing strategies, best practices and critical
issues, which must aim to provide insights
of interest and value to the customers
benefiting from bioscience technologies.
 If Genentech to be successful, it must focus
on new Biotechnology therapies which may
originate from the molecular level of organs,
tissues, cells, genes and proteins— and
from the convergence of
biomedicine/systems biology and
information technology, telecommunications
and nanotechnologies.

14. CHALLENGES FOR
GENENTECH
 One can expect new types of sensors,
implants, drug delivery systems and
artificial organs, improved diagnostics
which may detect communicable diseases
before symptoms appear, new forms of
personalized care and customized
medicine will be equally challenging for
Genentech success in 2020.
 To Match Future Challenges Genentech
must focus on next Generation Operating
Models which may Focus on Value Chain
for Virtual Extensions.

15. Feasible Next Generation Operating
Business Model Choice for Genentech:
Profiting Alone vs. Profiting Together

16. Future Dilemmas for Genentech
 Will the scientific research be
successful as promised? Patients and
practitioners want and need medical
solutions to treat and cure disease, but
science falls far short of expectations.
 Genomics, stem cells research cause
much commotion but fail to achieve
their early promise. Research
investment dries up and remains
stalemated about ethical “what ifs.”
 stem cell research, tissue engineering
and therapeutic cloning could be
restrained by public policy.

17. SWOT Analysis
Strengths -
-Well established reputation
-professional and high qualified researchers
-Enough financial support for the research
projects
Contribution to community health
--Patient advocacy
-Excellent image
-Recognized and certified contribution to global
health
-Resources spent to strengthen its pipelines
instead of making alliances
Weaknesses
-Time scales and pressure to keep the promises
-Strict confidentiality procedures
-High security procedures for researchers and
products
-Genentechs partnership with Roche restricted its
growth & expansion in Europe
-Money spent on specialized trainings as opposed
to mass marketing
Opportunities
- New research molecules in field of oncology,
Immunology, Cardiovascular and Tissue Repair.
-Reputation as best cancer drug developer and
vanguard leader of biotechnology field,
Maintaining form hold as marked leader.
-Expansion into larger international markets like
Asian.
Threats
-Dilemma on successful results for innovative
discoveries.
-Potential threats from Pfizer and Novartis, who
are acquiring small biotech branches as way of
capturing more of biotech market.
-Shut down risk
-Bioterrorism risk

18. CONCLUSION
Genentech’s success in 2020,depends on –
 Capabilities of its talented research team.
 Capacity to innovate the specialized,
highly-effective drugs.
 By bringing new molecules to the market.
 By moving towards “out-license
technology platforms and profiting from
royalty payments”
 stronger patent protection and Re-
investment in R& D.

19. Genetech’s Contribution to Future
Health
 http://www.youtube.com/watch?v=qCRUp
xqKnkY

20.  THANK YOU FOR YOUR
ATTENTION !