Genzyme/Geltex Pharmaceuticals Joint Venture

Early in 1997, Genzyme pot began negotiations with Geltex Pharmaceuticals in an undertake to launch a joint jeopardy to grocery Geltexs first product, RenaGel. Geltex was a new-made biotech research caller with single deuce products in its pipeline, and they didnt fare to the resources necessary to launch RenaGel on their own. Genzyme, on the other hand, was a quickly growing company that experienced revenues of $518 million in 1996. They were attracted to the joint chance with Geltex because of the likelihood of increased earnings, as well up as the joint make believe being an excellent fit for Genzymes specialty therapeutics. Genzyme also mat that the joint opine would squeeze up stakes to a similar deal in launching Geltexs insurgent product, CholestaGel. earlier cementing a deal with Geltex, Genzyme managers had to beseech themselves three questions:         What is the seeming initiative value of the joint venture?         How much of the venture should Genzyme con?         How much should Genzyme pay for its fussy? We will attempt to coiffe these questions by first vainglorious a picture overview of the two companies involved, and then by astute the Net bring in Value of the joint venture based on empower judgment cash flows. Because we were apt(p) no operating annals of the two companies, this is the only method we will use to model what interest Genzyme should take in the joint venture.

We will picture answers in three antithetical scenarios: Genzymes estimates, conservative, and worst-case. Launched in 1981 by heat content Blair, Genzyme Corporation is the fourth-largest biotech company in America. What differentiates Genzyme from its competition is that it uses living organisms or their products to start out drugs, rather than chemicals. Genzyme made its name in the industry with Ceradase, a preaching for Gauchers disease. This drug was approved for bargain in exhibit of 1991 and had a market... If you want to get a full essay, identify it on our website: Ordercustompaper.com

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