Alternative Solutions
Establishing strategic relationships that provide revenue, R and D funding, potential royalties and novel product opportunities has shown the effort of being team players outside of the organization. Partnerships are a key component of both developmental and financial strategies. Leveraging unique leadership position in the development of AAV-based products to establish partnerships provided the corporation with near- and mid-term payments and R and D funding. This allowed the company to evaluate novel product opportunities without detracting resources from another research program. These partnerships also may potentially provide royalty-based revenue over the long-term. Additionally, by combining their expertise in AAV-based product development the leadership or partners in specific therapeutic or technology areas, Targeted Genetics creates synergies that support the development of innovative and transformative therapies. Targeted Genetics have development collaborations with leading companies that provide them with additional product development opportunities. These partnerships are the result of their leading capabilities in AAV development and manufacturing, and typically provide them with research and development funding as well as enough revenue sharing and development milestones. Their expertise and capabilities enable them to form strategic partnerships with leading pharmaceutical and biotechnology companies, nonprofit organizations and academic institutions, from early stage proof-of-concept studies to extensive development and commercial collaborations. The collaborations have created product opportunities for them in areas with significant clinical and commercial potential, such as treatment and prevention of HIV/AIDS, congestive heart failure, and Huntington's disease.
Gene One should partner with other leaders in the biotechnology industry in order to keep pace with other companies. Gene One recognized to have continuance of growth it would require working as a team. This organization is heading in the direction when the leadership was willing to take advice from stakeholders or team members. As did Targeted Genetics Corporation, Gene One valued the suggestions made by other team members.
Gene One look at the option of obtaining assistance from an underwriting firm, this would help to determine what type of security to issue (common or preferred), best offering price and time to bring it to market.
Analysis of Alternative Solutions
Considering Gene One is only eight years old the suggestion of partnering with an experienced biotechnology company would be an option to keep in mind. Offering an IPO in 36 months seems to be a realistic goal.
Gene One recognized to have continuance of growth it would require working as a team. Willingness to take advice from stakeholders or team members prove to feasible. As did Targeted Genetics Corporation, Gene One valued the suggestions made by other team members. Values represent stable, long-lasting beliefs about what is important in a variety of situations that guide our decisions and actions. They are evaluative standards that help us define what is right or wrong, or good or bad in the world. Values dictate our priorities, our preferences, and our desires. They influence our motivation and decisions (McShane and Von Gilnow, 2005 pg 34).
Risk Assessment and Mitigation Techniques
Public perception of the risks and benefits of biotechnology can play an important role in the industries' attempts to test and market products. Despite the growing number of tests, the general lack of basic scientific understanding with respect to environmental introductions has fueled the existing feelings of uneasiness with which the public views high technology (Hogan and Kendall, 1994; Office of Technology Assessment, 1987; Zehendorf, 1994).
Gene One realized to grow from the private company to becoming a public corporation developing new innovative technology and product was necessary to be competitive. Chief Technology Officer Teri Robertson sounded confident enough to invent new technologies and products to bring to market. In the meantime, Vice President of Technology Research Angela Thomas has sent CEO Don Ruiz a letter of resignation effective two months from the written date. Even though she has recommended Bill Chang to take her place human resource now has to recruit another scientist to take Bill’s spot. Time has to be factored in when it comes to the development of new technologies and products.
Development of agricultural biotechnology products has resulted in the development of U.S. Risk Assessment protocols. The first field test of an engineered organism was for a bacterium which would protect plants against frost. The successful test was conducted in 1986 (Levin and Strauss, 1993). Since that time over 2000 field tests of plants and microorganisms have been conducted in the U.S. (Geneexchange, 1994b). In most cases the test (ranging in size from 0.25 to 10 acres) is designed to demonstrate that a product is efficacious and hence commercially viable.
The major issues related to evaluating the risk of environmental application of transgenic products are the type (i.e., what organism and for what purpose) and the scale (i.e., small scale field trial or commercial application). Releases vary in purpose, and this affects the scale and overall experimental design. To date, the only large scale, commercial use of an engineered plant or viable microbe has been in China (Chen, 1992).
Despite progress made possible through start-up funding, the incremental costs associated with ongoing research and its application are challenging the department regularly to seek additional funds to meet the increasing capacity needs and maximize the application of these tools for sustainable development. As enabling technologies that are inherently multidisciplinary, biotechnology and genomics may have applications and information to support the aims of many of the other science clusters, including Aquatic Animal Health, Aquatic Invasive Species, Species at Risk, and Aquaculture Production.
By increasing the awareness and understanding of the multiple benefits derived from the application of biotechnology tools, senior government officials will be better able to make informed policy decisions and invest in areas where science gaps remain. Risk assessments and critical decisions need to be made at all levels, reinforcing the need for an integrated approach.
Optimal Solution
The idea of partnering with another biotechnology company is good strategy for Gene One. An alternative or approach that best fits the situation, employ scientists who are experienced, , and efficient. If Gene One decides not to partner this might be a costly mistake. Very few optimal solutions can be found by or formulae, most require cut and try experimental approach. The leadership team has been meeting every Monday to exhaust all information to keep the project on the move. By Gene One being so young and not educated when it come to IPOs, this company’s other choice in going public would be to think about a merger.
Implementation Plan
On paper, India’s new biotechnology plans for the next millennium seem feasible. However, given the broad coverage that these plans envisage, along with the lack of public-private linkages, questions can be raised about successful implementation.
The plans have been designed by a group of experts, including both scientists and industry representatives, who were appointed by the government. They were published in the Report of the Working Group for the Ninth Five Year Plan (1997 to 2002), and contain both short-term and long-term, i.e. longer than five years, research and production goals. With a proposed expenditure in excess of US$ 255 million over the five year period, the experts have represented the most ambitious plans ever drawn up in India for this technology. Although, compared to previous years, the absolute budget for biotechnology has increased, in relative figures biotechnology research faces a declining share in the overall scientific research that is carried out in the public domain. While the government’s budget for scientific research has increased by 32 per cent, the share of biotechnology has declined from 11 per cent in 1987-88 to 9 per cent in the current financial year.
The basic policy framework for biotechnology has two main dimensions. The first takes into account the priorities of the main sectors in which biotechnology can make a difference. The second includes the discussion on some of the institutional mechanisms that are crucial to the developments in this sector, for instance the issue of intellectual property rights (IPRs). By accepting membership of the World Trade Organization (WTO), India has committed itself to extending intellectual property protection on living matter, for instance micro-organisms and lant varieties. Another area of institutionalization is to find regulatory mechanisms for bio-safety.
When Gene One came into the biotechnology business terminated disease in tomatoes and potatoes. This innovative discovery caused farmers to stop using pesticides and it made the consumers happy to buy more products with added chemicals. Gene One put in place a plan that will be appealing to investors and customers. Partnering with an experienced biotechnology company would put Gene One even farther than actually planned. Funding coming from eight lending institutions and monies coming from 100 influential private investors will aid Gene One with enough finance to help in the invention of more technology. The plan for Gene One to go public in 36 months was realistic and with the way teamwork as been displayed it go as scheduled.
Evaluation of Results
The usual method used to evaluate the financial performance of individual firms is to analyze operating statements and balance sheets. This conventional method of evaluation is not adequate for the case of early-entry firms in an industry based on new technologies (Office of Technology Assessment 1984a, 1984b). This is recognized in business periodicals by vague references to technology driven industries as distinguished from profit-driven industries.
The method for evaluation proposed in this paper is straightforward, and the logic is likewise direct. The market itself is used to evaluate the performance of individual firms. The change in a focal company valuation (denoted as size) by the market is decomposed into
six terms: 1) a term for all-industry performance by a hypothetical firm of average size; 2) an adjustment to the all-industry first term to compensate for the actual size of the focal firm; 3) an industry-specific term for a hypothetical firm of average size in the industry; 4) an adjustment to the industry-specific term to allow for the difference in size of the focal firm from the average; 5) a firm-specific term for a hypothetical firm of average size; and 6) an adjustment to the firm specific term to allow for the difference in size of the focal firm from the hypothetical average size firm. The difference in market valuation from one date to another is exactly accounted for by the six terms. The aggregate common stock valuation on a corresponding date is obtained
by multiplying the number of outstanding shares by the closing value of shares traded (Data obtained from Standard and Poor's Daily Stock Price Record Over-The-Counter; Standard and Poor Corporation1983, 1985).
.
Gene One success has resulted in the fact that the company decided to partner with an experienced biotechnology company. Initially started with $2million dollars and within eight years grew to $400 million dollars. Strategically planning by leadership has taken this company to another level in the biotechnology industry. Gene One will globalize its’ business.
Conclusion
In conclusion, team work will accomplish more than a one person. Working with small teams enables the members to accomplish more. The importance of assigning team members task in a timely manner helps the member to complete the assignment as planned. Many experts, including both scientists and industry representatives, are able to help biotechnology companies to go from private to public.
The method illustrated in this paper allows comparative evaluation of individual companies for an industry still in a research phase. Because the biotechnology industry is still in the formative stage of development, profits are usually nonexistent, financial requirements are substantial, and disappointment is mixed with optimism. The ultimate products Gene One discovers will be far reaching and beneficial to people. The capital requirements needed for this growing industry requires analysis of an individual company’s performance and potential. Various methods provide procedures to comparatively evaluate the performance of early entry firms in an industry based on new technologies.
References
(Chen, 1992)., . Retrieved May 1, 2008,
(Geneexchange, 1994b)., . Retrieved May 1, 2008,
Hogan and Kendall, 1994; Office of Technology Assessment, 1987; Zehendorf, 1994)., . Retrieved May 1, 2008,
Kinicki, A, & Kreitner, R (2004). Organizational Behavior, 6e, . Retrieved May 1, 2008,
(Levin and Strauss, 1993)., . Retrieved May 1, 2008,
McShane, S, & Von Gilnow, M (2005). Organizational Behavior: Emerging Realities for the
Workplace Revolution, 3e.New York: The McGraw-Hill Companies., . Retrieved May 1, 2008,
(Office of Technology Assessment 1984a, 1984b). (Standard and Poor's Daily Stock Price Record Over-The-Counter; Standard and Poor Corporation1983, 1985)
. Retrieved May 1, 2008, Web site: http://en.wikipedia.org/wiki/Initial_public_offering
. Retrieved May 1, 2008, Web site: http://www.dfo-mpo.gc.ca/biotech/docs/abgrds_e.pdf
.Retrieved May 1, 2008, Web site: http://www.biotech-monitor.nl/3506.htm
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Retrieved May 1, 2008, Web site: http://www.wabio.com/industry/stock_rpt.htm
Table 1
Issue and Opportunity Identification
Table 2
Stakeholder Perspectives
Table 3
Analysis of Alternative Solutions
Table 4
Risk Assessment and Mitigation Techniques
Table 5
Optimal Solution Implementation Plan
Table 6
Evaluation of Results
