Genzyme Summary Essay

Genzyme was founded in 1981, Sanofi purchased the company in 2011. They went public in 1986, rise 27 million dollars. Genzyme startet as a start up Company by scientists studying genetically inherited enzyme diseases. Their strategy didnt focus on the blockbuster do drugss like different biotechnology companies barely drugs for grand diseases. To developing a drug, it takes 10-14 years at the cost of around 800 million. But the blockbuster drugs had 1 billion dollars revenue. Genzyme has received several honor awards like national medal of technology.The food and drug administration established in 1983 the Orphane drug act giving seven years commercialize exclusivity to developers of drugs for rare diseases. This gave Genzyme big advantage when it comes to clinical trials, advertising and sales, it does not requires a lot. Their first success was the Ceredase drug- to treat the Gauchers disease. It was sold to over 4000 patients, with annual revenue of 800 million dollars. They had different way of manufacturing and sales compare to other companies. They did not do licensing to large pharmaceutical company. Genzyme was the worlds third largest biotech company in 2006 only profiting of rare diseases. upbraiding of the case* Avoided blockbuster market and good managementGood strategic to focus on a niche market instead of the blockbuster market. The degree of existing rivalry and entry barriers was low. Henri Termeer took a adventure in moving to a start up company but with his experience and expertise, the company went stronger and independent.* prototypic ones to market and the exclusivityGenzyme entered a subtle, untapped market. Being the first biotech company that focus on rare diseases and having the market exclusivity made them leading biotech company. They had the ability to identify almost all customers. They had big advantage when is comes to clinical trials, restrictions, FDA and small numbers of test patients required.