Clinical Trial and Nucleon Assignment Notes

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Nucleon Assignment Notes
Porter’s 5 Forces
Industry Analysis
Competition: Intense
Buyer Power: Moderate to High
oBig pharma companies likely have a lot of power, although as a small firm, your power increases once you clear phases of drug trials. •Supplier Power: Unsure, Moderate?
oThe case makes it sound like there’s not many manufacturers out there for contracting purposes. Not sure what power suppliers of raw materials have. •Threat of Substitutes: Moderate to High
oLots of firms racing to create the next blockbuster drug or treatment for big money illnesses. However, most drugs fail, so the likelihood of a substitute is probably only moderate. •Threat of New Entrants: Moderate

oRelatively easy to start a new small drug research firm. Just need some smart scientists. Funding is currently difficult to come by, however. Nucleon
Competition: Moderate to Low
oThe case mentioned they were in a pretty niche area of biotech. •Buyer Power: Moderate to High
oBig pharma companies likely have a lot of power. But if Nucleon clears phase II their power increases substantially. •Supplier Power: Unsure, Moderate?
oThe case makes it sound like there’s not many manufacturers out there for contracting purposes. Not sure what power suppliers of raw materials have. •Threat of Substitutes: Moderate to Low
oI don’t think there’s much out there in the way of burn treatments (need to check on that). •Threat of New Entrants: Moderate to Low
oThe drug research process is slow, so any new entrant in this specific area is going to be significantly behind with little to no way to catch up.

Resource Based View
VRIO
Value:There’s definitely value in a successful drug for burn treatment; it also presents itself as a possible cure for other ailments as well (i.e. kidney failure) Rarity:Not many alternatives for burn victim treatment (assumption based on the case’s voice); large molecule research is still new and rare, tough to get into....
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