Ivey Publishing
Synergy Pharmaceuticals Scales Up: License or Go It Alone?
Product Number:
9B19M026
Publication Date:
04/18/2019
Revised Date:
04/18/2019
Length:
11 pages (5 pages of text)
Product Type:
Case (Pub Mat)
Source:
Ivey
After more than a decade of development, US-based Synergy Pharmaceuticals Inc. (Synergy) received marketing approval from the US Federal Drug Administration (FDA) for its first drug, Trulance, which targeted a large market that had only two other approved competitors. Synergy now needed to scale up from a research-and-development shop to a sales-and-marketing powerhouse. The company had not partnered with a larger pharmaceutical company during the regulatory review process, which was typical for smaller drug development companies, and as a result, it retained 100 per cent of the sales revenue but had virtually no in-house sales or marketing capability. In September 2018, the company was heavily indebted and the stock was priced below US$2; many wondered if Synergy had been right to go it alone or if it should continue that strategy for developing the lucrative North American market. With a new chief executive officer, Trulance sales beginning to accelerate, and other products moving through the FDA approval process, Synergy needed to decide whether to stay the course and become a full-fledged pharmaceutical company or seek a partner and stick to its research and development competency.
Learning Objective:
The case can be used in an undergraduate- or graduate-level course on strategy, strategic marketing, corporate finance, or entrepreneurship. After working through the case and assignment questions, students will be able to do the following:
  • Evaluate a strategic decision for its impact on company earnings.
  • Use a spreadsheet template to develop financial modelling skills.
  • Justify and support assumptions used to build financial models.
  • Understand licensing agreements in the drug development industry.
Issues:
Disciplines:
General Management/Strategy,  Entrepreneurship
Industries:
Health Care Services
Setting:
United States, Small, 2018
Intended Audience:
Undergraduate/MBA
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
Associated Materials
Supplements: 7B19M026 (96 KB)
You Might Also Like...

Save In: