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Emba Strategic Dilemma April 2009
- 1. This is partof a presentation made by my Executive MBA Team for our final Strategic Dilemma project, April 2009The Company name has been omitted and some of the slides have been deleted, as the company we were working for had a non-disclosure agreement.
- 2. Strategic Dilemma ProposalMarketEntry for (Company)Virginia Commonwealth University Fast Track EMBA Team 4: Joe Barnes Sue BrownClint Johnson Ailen Lacey Steve Morgan Tim RadmoreFaculty Advisor:Dr. R. Wood
- 3. AgendaScience BackgroundCompany OverviewDrugDevelopmentCompetitorsMarket Entry OptionsRecommendationSummaryQuestions
- 4. The SciencePROTEOMICS:"The studyof the structure and function of proteins, including the way they work and interact with each other inside cells."National Cancer Institute
- 5. (Company) A biomarkerdiscovery company with a proprietary computational platform (algorithm)MISSIONTo advance pharmaceutical development by introducing computational bioinformatics services and new technology
- 6. (Company) – WhatIt OffersA method to identify Possible diagnostic biomarkersPossible therapeutic targets for new drugsPossible toxic side effects of drugs Optimal dosage of drugHow? using computational bioinformatics combined with laboratory validation
- 7.
- 8. MWP – UniquenessFinding more potential pathways/ interactions than competitorsBADECIHGFFKJ
- 9. Protein J CausesDiseaseBADECIHGFFKJDISEASE
- 10. Protein J CausesDiseaseBADECIHGFFKJDISEASE
- 11. Protein J CausesDiseaseBADECIHGFFKJDISEASE
- 12. Protein J CausesDiseaseBADECIHGFFKJDISEASE
- 13. Drug Development TimelineSource:http://www.fda.gov/fdac/graphics/newdrugspecial/drugchart.pdf
- 14. Drug Development Pipeline- PfizerSource: http://media.pfizer.com/files/research/pipeline/2008_0930/pipeline_2008_0930.pdf
- 15. Industry R&D ExpenditureTrendsSource: Tufts CSDD Approved NCE Database; PhRMA
- 16.
- 17. Risks and Rewardsof InnovationDrug development is costly, risky, and lengthyPfizer states one in many thousand new compounds generates revenueR&D costs continue to increaseIncreased success using (Company) can add substantial bottom line value to Pharmaceuticals
- 18.
- 19. Ingenuity SystemsIngenuity PathwayAnalysis800-lb gorillaUsed by most large pharmaceutical companiesReferenced in over 1,400 publicationsWeb-based
- 20. AriadnePathway Studio®Not focusedspecifically on drug industryUsed by numerous research institutesReferenced in approximately 200 publicationsPC stand-alone application
- 21. GeneGoMetaCoreTMNewest of the“Big 3”Gaining acceptance from large pharmaceutical companiesReferenced in approximately 200 publicationsWeb-based
- 22. ???Other CompetitorsSubsidiaries ofother companiesPrimary focus is supportNot well establishedLimited exposure to large pharmaceutical companies
- 23.
- 24. Market Entry Optionsfor (Company)Sell MWP OutrightNewStand-Alone BusinessHire Sales ConsultantPartner with CompetitorSellOutrightPartner with CompetitorHire Sales ConsultantNew Stand-Alone BusinessLowestHighestCost to ImplementWe modeled what we believe are the most feasible options
- 25. Option estimates reflecta 3-year product life
- 26. (Company) executives canuse the modeling tool to refine projectionsObstacles to Market Entry for (Company)CompetitorsProof of ConceptWeb PresenceDedicated ResourcesStrategic AlliancesFunding
- 27. SellOutrightMarket Entry Optionsfor (Company)Lowest risk optionQuickest revenue recognition for (Company) ExecutivesMust complete “Proof of Concept” and publish resultsEstimated revenue from sale: $13,000,000Sell MWP OutrightNewStand-Alone BusinessHire Sales ConsultantPartner with CompetitorLowestHighestCost to Implement
- 28. New Stand-Alone BusinessMarketEntry Options for (Company)Hire Sales ConsultantHighest risk option – Must overcome all obstacles12+ months to launch – No sales until year twoCompetition may duplicate (company) functionality at any timeHealthcare Sales Consultant may reduce launch time/increase revenue3-Year estimate of end-of-year cash position w/o Sales Consultant:Yr 1: ($537,000)Yr 2: $701,000Yr 3: $7,700,000Sell MWP OutrightNewStand-Alone BusinessHire Sales ConsultantPartner with CompetitorLowestHighestCost to Implement
- 29. Partner with CompetitorMarketEntry Options for (Company)Partnering with competitor allows (company) to leverage their resources:Client portfolioTrained staffWeb presenceSell MWP OutrightNewStand-Alone BusinessHire Sales ConsultantPartner with CompetitorLowestHighestCost to Implement
- 30. Partner with CompetitorIndustryPartner Portals Quicker launch than Stand-Alone option: 4 months vs. 12+ months Fewer obstacles than SA, but POC is critical to attract Partner(s) 3-Year estimate of end-of-year cash position: Yr 1: $2.9 million Yr 2: $10.7 million Yr 3: $22.4 million
- 31. Financial Comparison ofMarket Entry Options
- 32. RecommendationLaunch (company) asa pass-through service from Partner websitesRequirementsEstimated $250k in capital Fully dedicated resources Credibility in the marketplaceLicensing arrangementAriadneOtherCompetitors(Company)GeneGoIngenuity
Editor's Notes
- #5 Thank you, Tim.The Science.What is Proteomics you may be asking.According to the National Cancer Institute, “Proteomics is the study of the structure and function of proteins, including the way they work and interact with each other inside cells.”To explain further, I would like everyone to stand up. Move your chair back Now, stretch, move, turn around. Now, FREEZE where you are Look at how you are shaped; look how the person next to you is shaped; look at how we are all shaped – all different. I suggest to you that we each represent a protein in the body; we are about 50 different ones. There are 100,000s of us in the body. How we are shaped, how we interact with each other, how we function – that is PROTEOMICS.Thank you, everyone can sit down.” (wait for everyone to calm down)HOW does our client fit into this science of Proteomics?”
- #6 MWP is a “ “Their stated mission is “to “
- #7Â (Read this information)Let me illustrate how MWP does this:(next slide)
- #8Â Proteins interact with one another to cause certain reactions to happen in the body. Some of these interactions are known; some can be predicted by bioinformatics software. In this example, Protein A interacts with Protein D, E, and C; Protein D, in turns, interacts with Protein H and G; G interacts with F. (next slide)
- #9 MWP’s Unique software is able to find more potential pathways and interactions than their competitor’s software.As you can see, there are now more proteins and more interactions between these proteins than on the previous slide. How does this add a competitive advantage for MWP? If we know how proteins interact and what pathway sequences are followed, then you can predict how that pathway may be altered by a drug. For example:(Next Slide)
- #10 In simple terms: Lets’ say that Protein J causes a Disease. Protein J is in the pathway from A to E to J; or A to E to I to J. If we know this pathway, then we can develop a drug that will block the production of J anywhere along this pathway:
- #11Â We can direct the Drug to Protein A:If A is not produced, all the other proteins downstream are not produced.
- #12Â We can direct drug to Protein EOr
- #13 We can direct the drug to Protein J.All of these scenarios should cause J not to be produced and, thus, no Disease.My teammate Steve will now discuss the Topic of Drug Development and how MWP’s unique software can add value to Companies in the business of pharmaceuticals.