Surname 3
Business strategy currently in use
In order to sustain relevance in the market, Genentech does not only make use of
partnerships with relevant organizations and Research Institutes abut also diversify their
products. Even though cancer products have been the main source of sales for the company, the
fear of government intervention has pushed the biotechnology giant to diversifying their
production to consider diversifying their production to accommodate two therapeutic areas of
neuroscience and Infectious diseases. This strategy would ensure that the company remains
relevant in the market irrespective of the expected government policy on cancer products. The
strategy would also aid in increasing revenue generation. Furthermore, the business was also
keen to remain in line with the trending business models that come with the biotechnology.
The emergence of biotechnology come with it new business models that enabled
commercialization of intellectual property that is scientific in nature. The model is entirely based
in three major components which are market for knowhow, public equity and venture capital
markets and the development of new technologies. However, the business model also has some
short comings. While the research institutes and universities are on the frontline in the discovery
of biotechnological breakthroughs, the institutions do not have the knowledge and the resources
that are required to bring the technological breakthroughs to the market. The researchers
therefore have to partner with private equity and venture capital to propel the commercialization
of the new technology. With this kind of partnership, it is now easy for the new ventures that
have ready supply of financial capital to provide the badly needed support for the research and
development. The other strategies that become common in the attempts to promote the biotech
products were partnerships between the biotech firms and the pharmaceutical firms. The
pharmaceutical firms are keen to acquire biotech partners with an aim of bringing their new

+13062052269

info@desklib.com

Genentech: The Beginnings of Biotech (review)

Contribute Materials

Related Documents

Clinical Trial in a Pharmacy