Success

Immunex Races to Meet Demand for Biotech Drug

History

-Bio-tech (combination of biology and chemistry) is a hot arena for potential investment opportunities

-Tremendous potential for new companies seeking to gain a competitive advantage over in market that was still new was not highly saturated with competition.

-Immunex, Seattle based company was the founder of Enbrel, a new found drug that treats rheumatoid arthritis.

- Enbrel had annual sales of $ 750 million

Issues facing Immunex

- Enbrel was a gene based drug that was developed through non-traditional methods

- Bio-tech drugs take longer than traditional produced drugs ( 3yrs vs 5yrs)

- Enbrel was grown from Chinese hamster ovary cells

- Sales and production could have been higher if operation methods were revamped

- Bad forecasting by managers was a key hindrance to Immunex overall success

- Time horizons and uncertainties were also obstacles the company faced

- Drug development takes time; manufacturing plant and product needed to meet FDA regulations/approval before hitting the market

- Immunex should have starting preparing for this initiative earlier.

- Company was not able to prepare because of uncertainty about the effectiveness