Established in 2009, the (A) case explores whether Amgen, a leading innovator of biotech-established drugs, should enter the emerging company of biosimilars (BS), which are essentially 'me-too' products. There appear to be sound reasons to explore this connected diversification: innovation is getting tougher, regulators are intent on encouraging BS, and Amgen needs renewed increase. Internal debate was exacerbated by the presence of considerable uncertainty over the regulatory conditions for BS growth and how difficult it'd be to develop a BS. Some believed it played to Amgen's strengths, others felt that Amgen lacked critical abilities.
Many believed there was just no need for virtually any change in strategy in any way. Amgen needed clear tactical thinking, to browse by means of this morass. Amgen set out to see if an objective business case for entrance could be built. This involved testing out sensitivity to premises using scenarios , quantitatively estimating likely sales and profitability, settling on a set of most likely assumptions, and assessing the main dangers of entrance and of staying out. The evaluation provided powerful support to the essential assumptions for entrance subject. The case A further welcomes students to think through how the CEO Kevin Sharer must manage a positive entry option given the obstructed opinions throughout the senior management team.
PUBLICATION DATE: January 15, 2014 PRODUCT #: 714424-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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