Team Written Case Analysis (Concise)
Biodel’s use of biotechnology expertise in the three prime areas of Cell Biology, Molecular Biology, and Immunodiagnostics has led their company into some great opportunities. Biodel created a synthetic serum to replace fetal calf serum and horse serum, and provide a more consistently available product for scientific researchers. Biodel’s Molecular Biology division used DNA technology to gain 60% of the market share of growth factors and stock the largest collection of commercially available synthetic nucleotides, which was 50% of their sales. Biodel’s research and development in Immunodiagnostics led to the invention of DEMA, a …show more content…
Second, another project is available that is extremely intriguing to us. Biodel has the opportunity to produce a new product called DEMA. DEMA is a testing technology based on enzyme membranes rather than radioactivity. This product could be used to test for pregnancy, syphilis, hepatitis, cancer, toxins in food and carcinogens in the environment. DEMA is a healthier, safer, faster and cheaper way of testing than the radioactive method. There are no hazards or side effects to DEMA and it can provide the same results as radioactive tests. The problem with this project is the financial aspect. It is more expensive than the synthetic serum. Investments could total in the millions and the R&D costs could range from $1 to $3 million. However, this project has drawn the attention of major drug companies who are willing to participate in a joint venture with Biodel, which would help with the costs of the investment.
Third, Biodel has been thinking about joining the genetic engineering field. The company has basic but not wide experience if this field but they have been a major supplier of molecular biology products. At the moment, there are four major competitors in the market; Cetus, Genentech, Genex and Biogen. The basic purpose of this field is to engineer a cell to produce a specific biological product. Competitors use the bacterium E. coli as their host cell, for the most part. Biodel has the opportunity to enter the market with a new strategy