Genzyme/Geltex Pharmaceuticals Joint Venture

Early in 1997, Genzyme pot began negotiations with Geltex Pharmaceuticals in an under beget to dismiss a articulatio jeopardy to market Geltexs startle product, RenaGel. Geltex was a juvenile biotech research friendship with merely two products in its pipeline, and they didnt progress to the resources necessary to launch RenaGel on their own. Genzyme, on the early(a) hand, was a quickly growing company that experienced revenues of $518 gazillion in 1996. They were attracted to the joint dissemble with Geltex because of the likelihood of increased earnings, as well as the joint venture being an nice agree for Genzymes specialty therapeutics. Genzyme also felt that the joint venture would pull up stakes to a similar rush in launching Geltexs insurgent product, CholestaGel. Before cementing a charter with Geltex, Genzyme managers had to ask themselves terce questions:         What is the seeming enterprise value of the joint venture?          How much of the venture should Genzyme acquire?         How much should Genzyme tolerate for its busy? We will attempt to answer these questions by first giving a picture overview of the two companies involved, and then by calculating the Net bring in Value of the joint venture based on pass judgment bullion flows. Because we were given no operating history of the two companies, this is the only method we will use to determine what interest Genzyme should take in the joint venture. We will provide answers in three different scenarios: Genzymes estimates, conservative, and worst-case. Launched in 1981 by Henry Blair, Genzyme Corporation is the fourth-largest biotech company in America. What differentiates Genzyme from its competition is that it uses living organisms or their products to start surface drugs, rather than chemicals. Genzyme made its name in the industry with Ceradase, a treatment for Gauchers disease. This drug was approved for sa le in bear witness of 1991 and had a marke! t... If you want to get a full essay, trace it on our website: BestEssayCheap.com

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