Preview

Bayer Management of Innovation and Technology

Good Essays
Open Document
Open Document
830 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Bayer Management of Innovation and Technology
Introduction

Technological Change refers to the emergence of new products and processes in the marketplace brought about by innovative initiatives and distributive strategies; this in turn motivates formation of new industries and competitive rivalries for the organization. At Bayer it has always been their mission to create new innovations to better the lives of people. The pharmaceutical company has focused over the years on health care, nutrition and high-tech materials. Through Bayer Schering Pharma AG in Germany the company has been spearheading R&D in Oncology by employing multiple strategies and decimating competitive influences in the process. By analyzing Bayer’s competitive approach to R & D, we can better grasp the scope of their strategies to evaluate their advancements in the field of oncology.

Main Ideas

❖ Bayer’s strategy to maintaining competitive advantage lies in a simple concept: acquisition & investment. Under this model, they have incorporated a 3-pronged approach involving: (1) Drug-focus; (2) oncology patient research and (3) industry mergers and alliances.

❖ To show their commitment to R & D development, a look into Bayer’s finances shows that £2.7 billion has been allocated to the organizations overall research initiatives. Oncology in particular contributed significantly to this bill

❖ Bayer has partnered with biotech institute Genzyme to further R & D into their secondary anti-cancer drugs like MacCampath; this has allowed them to free resources and accelerate development of cancer drugs as Nexavar

❖ On a more homeward front, they also established a large Innovation Center in the USA which enhances their already existing research strategy. These initiatives enable Bayer to broaden their scope in discovering, developing and commercializing novel anti-cancer drugs thereby further extending their oncology pipeline.

Main Ideas Examples

❖ Nexavar - Bayer’s best-selling oncology product, currently



References: • http://www.research.bayer.com/en/News_Detail.aspx?id=9069 • http://pharma.bayer.com/scripts/pages/en/news_room/news_room/news_room92.php • http://www.investor.bayer.com/en/news/investor-news/investor-news/showNewsItem/1036/1238595840/b47ddf044f/ • http://www.press.bayer.com/baynews/baynews.nsf/id/41C0C4D08A7521AFC12577450025C013 • http://viva.vita.bayerhealthcare.com/scripts/pages/en/press/news_details_page.php/12330/

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Cetuximab Case Study

    • 316 Words
    • 2 Pages

    Generally, patent biologics are in the cleft of expiration and there are a rise in the demand for biosimilar. Our company will start to develop biosimilar for Cetuximab (Erbitux), which is an epidermal growth factor receptor (EGFR) inhibitor. Eli Lilly produces the drug in the U.S and Canada market whereas Merm KGaA produced Cetuximab for territory outside the USA and Canada. We want to pursue a biosimilar for Cetuximab to build a brand image and find finance to move to our main focus, which is biosimilar for Blinatumomab. Blinatumomab (Blincyto) is a bifunctional antibody that used to treat Philadelphia chromosome-negative refractory acute lymphoblastic leukemia. Blinatumomab approved in December 2014 by the US Food and Drug Administration under the accelerated approval program.…

    • 316 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Pharmaceutical companies often have relevant compounds that have not been assessed for their potential to treat colorectal cancer. The overall objective for this company, Arias Pharmaceuticals, is to help and support the discovery of new drug leads for colorectal cancer through networks and partnerships between pharmaceutical companies as well as academia. Specifically, the…

    • 1870 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    Teva Pharmacuetical

    • 2882 Words
    • 12 Pages

    The first strategic issue that faces the firm lies at the very root of pharmaceuticals, the decision to be either an innovative or generic pharmaceutical company. Thus…

    • 2882 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Eco 561 Wk 4

    • 1761 Words
    • 8 Pages

    In the realm of pharmaceutical drug sales, there are many players in the market. Many of these companies have a large inventory of drugs that they manufacture. The subdivision of the pharmaceutical market that draws the most revenue is oncology medications. Many companies will specialize in drugs for only one type of cancer, or sometimes with only one drug period. The cost of research and development in this field is much higher than any other disease subdivision. With many companies focusing on specific treatment plans there is a real opportunity to corner the market. The sale of oral medication is on the rise, by getting ahead of the generic sales of these oral agents, the company can establish itself at the forefront of contemporary cancer treatment. The following will point out ways to boost revenue, determine maximizing profit strategies, and creating barriers to establish this company as the leader in oncologic pharmaceutical sales.…

    • 1761 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    Genentech is one of the world’s leading biotechnology companies focusing on therapies for cancer, heart attacks and others. Its industry is marked by rapid and accelerating (technological) change, thus internal resources and capabilities form the main basis for competitive advantage and strategic orientation. In line with this resource-based view this essay will analyze the company’s resources and capabilities following Porter’s “Value Chain“ approach. Building on this they will be evaluated in terms of relative importance and strengths in order to conclude the main strengths and weaknesses of Genentech and derive strategic implications.…

    • 1305 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Pharmanet-i3, a subsidiary of inVentive Health, is a world leading clinical research organization committed to the advancement of health around the world. The mission of Pharmanet-i3 is to be a strategic partner to companies that develop therapeutic drugs, and aim to bring drugs to the public that treat disease and improve the quality of life. The company will operate within the industry’s highest quality standards with uncompromising integrity, ethics, and respect for employees, study participants, the environment, and the communities in which the employees live and work. Shareholders can expect superior returns through the implementation of a successful growth strategy (Pharmanet-I3, n.d.).…

    • 1342 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Biogen Analysis

    • 7813 Words
    • 32 Pages

    Van Anum, Patricia. "Amgen and Biogen Seek to Fill the Pipeline." Chemical Market Reporter, March, 12, 2001 v259.…

    • 7813 Words
    • 32 Pages
    Good Essays
  • Good Essays

    This paper will identify the strategic issues and problems that NAT faced in developing the new product. I will then analyze and evaluate the industry and market behavior by using a SWOT analysis. Finally, this paper will offer a set of recommendations based on the surrounding circumstances and options available to the Eli Lilly team.…

    • 1293 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Merck Decision Tree

    • 456 Words
    • 2 Pages

    Merck is a global research-driven pharmaceutical company dedicated to putting patients first. Merck's highest priority areas are Alzheimer’s disease, atherosclerosis, cardiovascular disease, diabetes, novel vaccines, obesity, oncology, pain and sleep disorders. In addition, and importantly for licensing, the following other areas remain of high interest for focused investment in new compounds and mechanisms: antibiotics, antifungals, antivirals (HCV and HIV), asthma, COPD, neurodegeneration, ophthalmology, osteoporosis, schizophrenia, and stroke.…

    • 456 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Yamada reorganization of drug discovery at GlaxoSmithKline (GSK) following a merger to combat bureaucracy in decision making, approval, and authorization. This reorganization was necessary for the continued success of the company. Often the process for drug discovery and market is a slow and tedious process which can cost a company a lot in resources and financially. The smaller biotech companies are able to move quicker and push new drugs to market faster. The shift, Yamada thinks, will help produce an entrepreneurial environment akin to a smaller, biotechnology outfit. This reorganization placed nearly 2,000 research scientists into six centers of excellence in drug discovery (CEDD). Each CEDD focused on a small set of therapeutic areas and possessed decision rights over the progression of pharmaceutical compounds through the early stages of development. These groups managed the pipeline from Lead Optimization through Proof of Concept. Each CEDD had full control over its own budget which could be spent internally or externally to deliver their best possible pipeline. The goals in each of these moves was to drive accountability deeper into the organization, reduce central oversight as much as necessary and foster a “biotech-like” atmosphere in a very large bio/pharmaceutical company.…

    • 756 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Genentech Essay

    • 2177 Words
    • 9 Pages

    High spending on research and development that enables Genentech to develop its current drugs and produce new ones.…

    • 2177 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Products The company's product portfolio includes many world leaders and a number of high potential growth products: Arimidex (cancer), Crestor (cardiovascular), Nexium (gastrointestinal disease), Seroquel (schizophrenia) and Symbicort (asthma and chronic obstructive pulmonary disease). Profile – Active in over 100 countries with a growing presence in important emerging markets including China; corporate office in London, UK; and major R&D sites in Sweden, the UK and the US. It employs over 65,000 people (51% in Europe, 32% in the Americas and 17% in Asia, Africa and Australasia).…

    • 2438 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    • Fastest Drug Developers Consistently Outperform Their Peers, Generating Substantially Higher Revenue and Cost Savings ; Tufts Center for the Study of Drug Development; September/October 2006 Tufts CSDD Impact Report…

    • 1506 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Merck Case

    • 587 Words
    • 4 Pages

    Merck had a 14% increase in sales between 1997 and 1998 and 22% increase in sales from 1998 – 1999, and a 13% annual increase in earnings over the same period. Merck’s business strategy consists of two parts: (1) developing and marketing new drugs through internal research, and (2) developing partnerships with smaller biotechnology companies. Since 1995, Merck had launched 15 new products that earned $5.9 billion on sales of $32.7 billion. Furthermore, Merck may agree to license new drugs from other firms and with its larger capital and greater assets, can assume the risk of submitting the drug through various regulatory approval phases. If the drug becomes profitable, Merck can earn significant cash flows while paying a royalty to the licensor. However, most important is the option that Merck has in deciding when to abandon or continue on this project (deferability or optionality). If Merck reaches a point when its expected NPV is negative, it can simply abandon the project. As a licensee, Merck can allow smaller biotechnology firms to focus on research and development. These smaller firms often have smaller budgets and are not financially or personnel equipped to handle the costly and long FDA approval process, and the subsequent marketing, distribution, and sales of new drugs. This task is better suited for a larger company, such as Merck, which has more resources and money.…

    • 587 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Sanofi-Aventis Acquisition

    • 5913 Words
    • 19 Pages

    Bibliography: Cleaves, K., Thayer A., (August 2004). Warning, merge with care: Sanofi-Aventis. Modern Drug Discovery. Retreived on June 6, 2014 from http://pubs.acs.org/subscribe/archive/mdd/v07/i08/pdf/804business2.pdf…

    • 5913 Words
    • 19 Pages
    Powerful Essays

Related Topics