Vertex Case Team 2
OPIM 5894 ADVANCED PROJECT MANAGEMENT
VERTEX PHARMACEUTICALS CASE
Team 2
April 5, 2012
http://users.business.uconn.edu/snair/opim5894.html
Team 2 - Vertex Pharmaceuticals case
2
Issues Raised
Drug development issues – selecting a portfolio of products
In-house versus Licensing issues
Types of risks – Target risk, Mechanism risk,
Molecule risk, Market risk
Real options analysis
Team 2 - Vertex Pharmaceuticals case
3
Which of the 4 project portfolio options currently facing Vertex do you favor?
VX-148: least scientific sizzle (IMPDH is a ‘validated target’; Vertex wants breakthroughs), already similar drugs on market, 2.7 million people affected by psoriasis, quick to market (2007), advanced development (phase II), least remaining development costs ($100MM), good success probability, low sales
VX-702: might not be covered by insurance, possible toxicity issues, advanced development (phase IIa), low probability of success, late to market (2009), many attempts by competitors have failed, moderate remaining development costs ($300MM), good profit margin, moderate profits, cheap and easy to make, moderate projected sales
VX-765: high manufacturing cost, high remaining development cost
($600MM), early in development (preclinical), moderate success probability, pralnacasan deal with Aventis, oral not injection, good antiinflammatory drug has high potential, relatively quick to market (2008), good profit margin, good projected sales
VX-950: complex and costly, early in development (preclinical), late to market (2009), low remaining development costs ($220MM), high probability of success, low profit margin, moderate sales
Team 2 - Vertex Pharmaceuticals case
4
Which of the 4 project portfolio options currently facing Vertex do you favor? Our favorite is VX-765 to treat Rheumatoid Arthritis and Osteoarthritis
Team 2 - Vertex Pharmaceuticals case
5
Specifically, which two projects would you advance in development? Why? Show
VERTEX PHARMACEUTICALS CASE
Team 2
April 5, 2012
http://users.business.uconn.edu/snair/opim5894.html
Team 2 - Vertex Pharmaceuticals case
2
Issues Raised
Drug development issues – selecting a portfolio of products
In-house versus Licensing issues
Types of risks – Target risk, Mechanism risk,
Molecule risk, Market risk
Real options analysis
Team 2 - Vertex Pharmaceuticals case
3
Which of the 4 project portfolio options currently facing Vertex do you favor?
VX-148: least scientific sizzle (IMPDH is a ‘validated target’; Vertex wants breakthroughs), already similar drugs on market, 2.7 million people affected by psoriasis, quick to market (2007), advanced development (phase II), least remaining development costs ($100MM), good success probability, low sales
VX-702: might not be covered by insurance, possible toxicity issues, advanced development (phase IIa), low probability of success, late to market (2009), many attempts by competitors have failed, moderate remaining development costs ($300MM), good profit margin, moderate profits, cheap and easy to make, moderate projected sales
VX-765: high manufacturing cost, high remaining development cost
($600MM), early in development (preclinical), moderate success probability, pralnacasan deal with Aventis, oral not injection, good antiinflammatory drug has high potential, relatively quick to market (2008), good profit margin, good projected sales
VX-950: complex and costly, early in development (preclinical), late to market (2009), low remaining development costs ($220MM), high probability of success, low profit margin, moderate sales
Team 2 - Vertex Pharmaceuticals case
4
Which of the 4 project portfolio options currently facing Vertex do you favor? Our favorite is VX-765 to treat Rheumatoid Arthritis and Osteoarthritis
Team 2 - Vertex Pharmaceuticals case
5
Specifically, which two projects would you advance in development? Why? Show