Genzyme Summary Essay

Genzyme was founded in 1981, Sanofi purchased the company in 2011. They went public in 1986, fostering 27 million dollars. Genzyme startet as a start up participation by scientists studying genetic ally inherited enzyme diseases. Their strategy didnt accent on the blockbuster drugs akin some other biotechnology companies but drugs for obsolete diseases. To developing a drug, it takes 10-14 years at the cost of around 800 million. provided the blockbuster drugs had 1 billion dollars revenue. Genzyme has received several honor awards like national medal of technology.The food and drug administration open in 1983 the Orphane drug act giving seven years trade exclusivity to developers of drugs for elevated diseases. This gave Genzyme big advantage when it comes to clinical trials, advertising and sales, it does not requires a lot. Their first success was the Ceredase drug- to treat the Gauchers disease. It was sold to over 4000 patients, with annual revenue of 800 million doll ars. They had different way of manufacturing and sales compare to other companies. They did not do licensing to large pharmaceutical company. Genzyme was the worlds third largest biotech company in 2006 only profiting of rare diseases.Reflection of the case* Avoided blockbuster market and heavy managementGood strategic to focus on a turning point market instead of the blockbuster market. The degree of existing rivalry and insertion barriers was low. Henri Termeer took a risk in moving to a start up company but with his experience and expertise, the company went stronger and independent.* First ones to market and the exclusivityGenzyme entered a small, untapped market. Being the first biotech company that focus on rare diseases and having the market exclusivity made them leading biotech company. They had the ability to identify almost all customers. They had big advantage when is comes to clinical trials, restrictions, FDA and small numbers of test patients required.