Javikorn Chantanasuksilp EGRMGMT 510.03 10/19/2014 The Medicines Company held a policy of rescuing abandoned drugs. It believed that there was still value in drugs that failed to meet a developer’s initial expectations. Its first product was Angiomax‚ a blood thinning drug or “anticoagulant”. The company had to compete with the existing drug named Heparin which it believed that there were lots of disadvantages of using Heparin compared to Angiomax in terms of unpredictability‚ high risk
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The Medicines Company Case Write-Up: Terence Cho‚ Felipe Duarte‚ Aleks Loiko‚ Robert Shaw‚ and James Wang Section 4‚ Group 10 Medicines Company’s drug‚ Angiomax‚ outperforms heparinHeparin‚ but requireincurs a significantly higher price costs to produce. This ‚ makesing the drug difficult to attractively price towards hospitals. This difficulty in pricing stems from a poor positioning strategy for Angiomax which does not maximize the perceived value (PV) that the drug provides to its key customer
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9‚ Creative Computers had a market capitalization of $ 232 million (22.75 * 10‚238‚703 outstanding shares) whereas Ubid’s market capitalization amounts to $439 million. This indicates that Ubid currently has a greater market value than the parent company. Moreover‚ the mispricing can be taken advantage of through an arbitrage opportunity. Paradoxically‚ the parent’s stock price did not keep pace with that of its subsidiary. The relative prices between Creative Computers and Ubid suggest a potential
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Q1 Value: Angiomax is a blood-thinning drug‚ or anticoagulant‚ used in emergency coronary heart care. Angiomax is positioned as an alternative to heparin‚ the most commonly used anticoagulant in emergency coronary heart care‚ so to assess Angiomax value to a hospital is required to compare these two drugs. First of all is necessary to analyze the differences in effectiveness of the products in treatments. The use of heparin has associated some general disadvantages like: • Unpredictable effects:
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Background The Medicines Company’s business model is to acquire or lease products in the development stage from leading pharmaceutical companies. Essentially‚ they will acquire or lease drugs that have been abandoned or shelved due to lack of early stage research results. The company’s success lays on their being able to save "rejected" compounds‚ receive FDA approval for their use‚ and still turn a profit. This case study provides a look at the first few years of this start-up company‚ from the initial
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For the exclusive use of M. HUSSAIN Harvard Business School 9-582-103 Rev. September 24‚ 1985 Sealed Air Corporation The president and chief executive officer of Sealed Air Corporation‚ T. J. Dermot Dunphy‚ explained the firm’s 25% average annual growth in net sales and net earnings from 1971 to 1980: The company’s history has been characterized by technical accomplishment and market leadership. During the last 10 years we built on our development of the first closed-cell‚ lightweight cushioning
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The Himalaya Drug Company was founded in 1930 by Mr. M. Manal with a clear vision to bring Ayurveda to society in a contemporary form and to unravel the mystery behind the 5‚000 year old system of medicine. The brand‚ the company analysed‚ is targeted at the modern Indian consumer who is willing to pay a premium for good medicine‚ and for those who believe in ayurveda .This is a good example of effective concept development. The current Himalaya logo is a visual definition of the brand. The leaf
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Thoma Bravo – Citect Corporation (HBS 9-209-022) Study Questions 1. Do you think TB or Schneider would create more value as the owner of Citect? 2. TB would assume what risks if they are the winning bidder? 3. Should TB continue to bid on Citect and at what price? Are the expected ROIs and IRRs to TB sufficient at your revised bid amount? (* note: a detailed evaluation model will be constructed during the class session *) Study Questions 1. Is Newell just another conglomerate? How
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assets (cost‚ revaluation‚ and fair value) and gain exposure to IFRS. Case Questions: 1. Assume there are three separate real estate companies: US Realty (which applies the cost model)‚ UK Realty (which applies the revaluation model)‚ and International Realty (which applies the fair value model). Assume also that on December 31‚ 2003‚ each company pays £1‚000 cash to obtain investment property comprising land with negligible value and an office building worth £1‚000. The building has a
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Exhibit 1 Selected Pinkerton’s Financial Data (in $millions) 1983 1984 1985 1986 1987 (E) Income From Services Cost of Services provided Gross Profit Operating Expenses Operating Profit Cash Accounts receivable‚ net Other current assets Total Current Assets Net property‚ plant‚ and equipment Total Assets Accounts payable Accrued expenses ad other current Liabilities Total Current Liabilities Exhibit 2 $ 296 265 32 16 16 4 49 53 11 64 0 29 $ 308 275 32 17 15 3 51 54 11 65 1 29
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