Nucleon Case
Nucleon Inc.
Nucleon, Inc. is one of over 200 firms founded since the 1970s which are focused on developing biotechnological pharmaceuticals products. Biotechnology came about with the development in advances of molecular biology and immunology, hence the new field of R&D is called “biotechnology”. Nucleons first product is CRP-1 (cell regulation ein-1) and after several years of experimentation the time was ready for human clinical trials, which was not going to be an easy hurdle to get over. Due to the fact that Nucleon did not have any manufacturing facilities which met the FDA requirements they had to figure out how to jump over the hurdles presented. One potion was to contract clinical manufacturing to an outside firm. Another option was to build a new pilot plant for clinical trials. Nucleons third option is to license the manufacturing to another biotechnology company. Risk was found in their options but they also came with rewards. If Nucleon could establish a strong paten on a important molecule this could ensure capital for growth and development which could keep Nucleon alive for years.
Recommendations:
Although we see the benefit to investing in having their own production capability in house, we feel that in the short-term, Nucleon should not overextend itself on its very first drug venture before it is sure that it will be on the fast track to FDA approval. Furthermore, Nucleon would have to deal with the difficulty and costs of procuring the right talent to fill all the holes that will open up in its organizational structure with regards to maintenance, procurement, quality assurance, technical support, logistics, and other functions in order to operate the manufacturing plant.
Nucleon’s management team feels strongly that their strongest core competencies are in the research and development of new therapies using cell-regulating factors. They are the
Nucleon, Inc. is one of over 200 firms founded since the 1970s which are focused on developing biotechnological pharmaceuticals products. Biotechnology came about with the development in advances of molecular biology and immunology, hence the new field of R&D is called “biotechnology”. Nucleons first product is CRP-1 (cell regulation ein-1) and after several years of experimentation the time was ready for human clinical trials, which was not going to be an easy hurdle to get over. Due to the fact that Nucleon did not have any manufacturing facilities which met the FDA requirements they had to figure out how to jump over the hurdles presented. One potion was to contract clinical manufacturing to an outside firm. Another option was to build a new pilot plant for clinical trials. Nucleons third option is to license the manufacturing to another biotechnology company. Risk was found in their options but they also came with rewards. If Nucleon could establish a strong paten on a important molecule this could ensure capital for growth and development which could keep Nucleon alive for years.
Recommendations:
Although we see the benefit to investing in having their own production capability in house, we feel that in the short-term, Nucleon should not overextend itself on its very first drug venture before it is sure that it will be on the fast track to FDA approval. Furthermore, Nucleon would have to deal with the difficulty and costs of procuring the right talent to fill all the holes that will open up in its organizational structure with regards to maintenance, procurement, quality assurance, technical support, logistics, and other functions in order to operate the manufacturing plant.
Nucleon’s management team feels strongly that their strongest core competencies are in the research and development of new therapies using cell-regulating factors. They are the
Cited: Al-Karmi, Ahmad. "VRIO Framework." Arabianeurs. Arabianeurs: A Resource for Entrepreneurs in the Arab World., 9 Oct. 2011. Web. 26 Sept. 2013. WebsiteLinkTagsEditDelete Chapman, Allan. "Index Examples of Porters Five Forces." Michael Porter 's Five Forces Competition Theory Model. Businessball.com, n.d. Web. 26 Sept. 2013