Genentech Case Study

Topics: Cost, Future, Risk Pages: 3 (564 words) Published: January 28, 2010

Genentech Company is facing a lot of problems and difficulties in order to implement and incorporate best technologies for future growth regarding uncertain future of its cancer drugs. The senior vice president of product David Ebersman along with his team is busy outlining the best approach to it.

Central Issue:

What measures should Genentech employ or implement in order to increase their production and manufacturing capacity to meet the future anticipated and predicted demands over the next 2 to 3 years for a family of new cancer drug?

Recommended courses of action:

They should try to further improve the current process by boosting throughput.

Try to build relationships with other manufacturers and additional companies to meet the Excess demands by negotiating contracts and agreements.

Start searching for economical and strategic locations for building up of new manufacturing plant. It’s important to keep looking for space and be ready with a blue print of an additional facility.

Try to stay away from messing up with FDA regulations by avoiding long period revalidation.

Focus should be laid on fully completing the CCP2 at Vacaville.

Basis for recommendations:

There is no proper assurance of a continuous growth and increase in sales by creating the CCP3 facility. The investment on implementing CCP3 is worth $600 million. And it is still not clear about the effectiveness and market response of Avastin. The drug could also result in failure and by investing CCP3 will surely cost us $6oo million. The golden rule for the moment is to wait and watch as sales are dependent on market response and there is point investing $600 million with hinting success.

Moreover, the location at Vacaville won’t be able to withstand the additional load of CCP3, if we built it on the same location alongside CCP2, which is not fully completed. The process and work force will be at risk of mounted pressure and in turn new employees that might...
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