Clinical Trial and Vertex
Vertex Case Analysis
Industry Challenges
Vertex faced a very difficult decision when the company had to decide which drug candidates they should fund on their own, and which ones they should partner up with cooperate alliances who can financial support the projects. The company had revenue from various corporate partnerships and roughly $600 million in cash and short-term investments, but the company would not be able to fund more that two of its fours primary development projects. The decision was colossal since the chosen candidates would be the first products Vertex attempted to bring through development and hopefully onto the market on its own (Pisano).
Industry Response
Of the several drug candidates in clinical testing, four candidates were thought to be the most promising that had not been partnered yet. The candidates were VX-148 (Psoriasis), VX-702 (Acute Coronary Syndrome), VX-765 (Rheumatoid Arthritis and Osteoarthritis), and VX-950 (Hepatitis C). Initially, it was decided two of the drug candidates would move forward in development through funding by Vertex, while the other two would be partnered or put on hold as backups for future development.
During the Wall Street briefing, Vertex had decided they would focus all their resources on one project but would keep the other projects going. Development of VX-148 would cease, and VX-950 would move along with MMPD as a combination treatment. Vertex would continue development on VX-702 and VX-765 but only as resources became available.
Main Case Issues
With two drugs already on the market through collaborations with other pharmaceuticals, Vertex was focusing on getting drugs to market through internal development. To succeed, Vertex would have to choose which drugs they can internally support and which ones would have to be partnered. They had the following options: chose two candidates to focus their resources on and hold the other two as backups, choose two candidates
Industry Challenges
Vertex faced a very difficult decision when the company had to decide which drug candidates they should fund on their own, and which ones they should partner up with cooperate alliances who can financial support the projects. The company had revenue from various corporate partnerships and roughly $600 million in cash and short-term investments, but the company would not be able to fund more that two of its fours primary development projects. The decision was colossal since the chosen candidates would be the first products Vertex attempted to bring through development and hopefully onto the market on its own (Pisano).
Industry Response
Of the several drug candidates in clinical testing, four candidates were thought to be the most promising that had not been partnered yet. The candidates were VX-148 (Psoriasis), VX-702 (Acute Coronary Syndrome), VX-765 (Rheumatoid Arthritis and Osteoarthritis), and VX-950 (Hepatitis C). Initially, it was decided two of the drug candidates would move forward in development through funding by Vertex, while the other two would be partnered or put on hold as backups for future development.
During the Wall Street briefing, Vertex had decided they would focus all their resources on one project but would keep the other projects going. Development of VX-148 would cease, and VX-950 would move along with MMPD as a combination treatment. Vertex would continue development on VX-702 and VX-765 but only as resources became available.
Main Case Issues
With two drugs already on the market through collaborations with other pharmaceuticals, Vertex was focusing on getting drugs to market through internal development. To succeed, Vertex would have to choose which drugs they can internally support and which ones would have to be partnered. They had the following options: chose two candidates to focus their resources on and hold the other two as backups, choose two candidates
References: www.diahome.org/productfiles/8357/diaj_11547.pdf http://www.dddmag.com/articles/2011/12/partnering-successand-survival www.mayerbrown.com/news/article.asp?id=6374&nid=5 http://www.huffingtonpost.com/2011/05/23/hepatitis-c-drug-incivek-_n_865548.html http://www.cbsnews.com/8301-505245_162-57370808/vertex-posts-4q-profit-on-growing-incivek-sales/ http://www.vrtx.com/current-projects/approved-medicines/incivek.html http://investors.vrtx.com/releasedetail.cfm?releaseid=271923