StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Joint Ventures in the Field of Biotech Research - Essay Example

Cite this document
Summary
The essay "Joint Ventures in the Field of Biotech Research" critically analyzes the role of joint ventures in the field of biotech research. Chiesa and Chiaroni have defined biotechnology as the technological and scientific application of living or non-living and organic or genetic substances…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.4% of users find it useful
Joint Ventures in the Field of Biotech Research
Read Text Preview

Extract of sample "Joint Ventures in the Field of Biotech Research"

? Joint Ventures in the Field of Bio-Tech Research Table of Contents Table of Contents 2 Biotechnology- The Science Behind 3 Joint Venture in Bio technology Research 4 Joint Venture between Metabolix and Antibioticos S.A 4 Metabolix 4 Antibioticos S.A 5 Recommended Joint Venture Model 6 Reference 7 Biotechnology- The Science Behind Chiesa, and Chiaroni (2005) have defined biotechnology as the technological and scientific application on living or non living and organic or genetic substances in order to produce knowledge, new product or services. In simple words, bio technology research is closely related to evolution of biological science and application of modern technology to reveal biological facts of life (Sherpa Group, 2011). To understand the impact of joint venture or partnership between research companies in the field of bio-technology the essay will try to highlight those sectors in the domain of bio technology, which have emerged as lucrative dimension for conducting research with the help of strategic alliances. The study has following domains of bio-technology research which have emerged as lucrative domain for strategic alliance between research partners. Research on DNA/RNA In many cases, it has been observed that biotechnology players form strategic alliances in order to conduct research on DNA/RNA amplification, synthesis, sequencing or gene expression profiling in order to develop a new medicine which can cure critical diseases or fillip the scientific development for a particular domain. According to Sherpa Group (2011), almost 64% of bio-tech and Enzyme companies are directly or indirectly related to DNA/RNA research. Research on Proteins Bio-tech companies are also focusing on conducting research on proteomics, engineering or synthesis of proteins and peptides, fabrication of cell receptors etc in order to develop enzymes or medicines for both research and commercial purpose (Sherpa Group, 2011). Joint Venture in Bio technology Research Furman et al (2002), Iammarino and McCann (2006) and Casper (2007) have pointed out that, bio-technology industry knowledge driven industry, which means that, companies go for syndicated financing, collaboration with government, strategic tie-ups with universities, outsourcing in order to develop capabilities and fill up the knowledge gap in order to develop new offering and move ahead in the competition. However, Andersson et al (2004) and Vassolo et al (2004) have argued that, strategic alliances between biotechnology companies help them to develop new processes, access to patents and access to knowledge resources but also mutually help both the companies to achieve competitive advantage. This is the reason why research collaboration activities by bio technology companies are growing at constant pace for last few years. To take the discussion forward the study will cite strategic alliances between US company Metabolix and Spanish company Antibioticos S.A which is a renowned Pharmaceutical Active Ingredients manufacture (Seiffert, 2012). Joint Venture between Metabolix and Antibioticos S.A In the year 2012, Metabolix Inc has announced that it has signed a collaboration agreement with Madrid based Antibioticos S.A for developing biopolymer resin. Both of the company have signed a letter of intent in order to in order to conduct research on biodegradable Mirel which is plant based alternatives for non-biodegradable plastics. According to bio technology specialists, bio polymer can act as suitable alternatives of plastics and it has minimum environmental impact due to its recyclable and bio degradable nature. Apart from the environmental benefits, commercial value of bio polymer has also attracted bio-tech companies to invest money on developing it. For example, demand for bio-polymer is growing at double digit growth rate for last consecutive years in both Europe and USA, which is another reason why bio-tech companies are banking on bio polymers as the next big thing (Seiffert, 2012). Metabolix Although strategic partnership with Antibioticos S.A will help the company manufacture bio polymers but there are possibilities that deal might create similar kind of predicament that has faced by the company with its earlier strategic alliances with Archer Daniels Midland Co. According to analysts, the strategic partnership with Antibioticos S.A will help Metabolix to manufacture bio polymer in large scale and also open the door for the USA based company to penetrate in European bio polymer market (Seiffert, 2012). At present, the company has not much access to European enzyme and bio-polymer market which is dominated by German and Spanish bio-tech companies. In 2012, the Cambridge based company has earned revenue of $400,000 from its bio-polymer products but it is expected by the analysts that strategic partnership will help the company to achieve 50% rise in the revenue for forthcoming years. Only problem with the deal is that, the deal will not help Metabolix to increase access to European enzyme market because currently the deal is only restricted to bio-polymer production, which raises doubt over the long term success of the deal. Antibioticos S.A Although the deal with Metabolix will help Antibioticos S.A to gain access to the knowledge and financial resource of the American biotech player but there is possibility that the deal might cannibalize the market penetration of Antibioticos S.A in their home ground. According to the agreement, Antibioticos S.A needs to validate the technology of Metabolix in their manufacturing system at own cost which will increase financial risk for the company. However there are benefits which can be exploited by Antibioticos S.A such as diversification of the business portfolio, enhancement of technical capacity to manufacture not only bio-polymers but bio-similar also. According to Daniele Pucci Di Benisichi (president of Antibioticos S.A), the strategic agreement will help the company to diversify Mirel biopolymer resin in different segment in order to cater demand of various industrial players (4-traders, 2012). Major player in the strategic partnership is Metabolix, the study will analyze financial performance of the company after the announcement of the deal. (Source: 4-traders, 2012) It is clear from the forecasted financial performance of the company that the strategic partnership with Antibioticos S.A will not increase net profit margin in future years hence it can be said that the deal might not prove as a profitable one for Metabolix in the future years. Recommended Joint Venture Model As mentioned by Kirin-Amgen JV model, two companies should have equal stake in the joint venture model in order to develop polyhydroxyalkanoate (PHA) resins or Mirel (Guzman, 2012). Another important thing is that, financial performance of Metabolix in the last few quarters is not good enough to ensure the fact the company will successfully finance the strategic partnership in long run. Antibioticos S.A needs to check the financial viability of the deal and also needs to take time to validate the processing technology of Metabolix in their research process. Reference 4-traders., 2012. Metabolix, Inc: Metabolix Signs Letter of Intent with Antibioticos for Production of Mirel Biopolymer Resin. [online] Available at: [Accessed 25 April 2013]. Andersson, T., Serger, S., Sorvik, J. and Hansson, E. W., 2004. The Cluster Policy Whitebook. Malmo: International Organization for Knowledge Economy and Enterprise Development. Casper, S., 2007. How do technology clusters emerge and become sustainable? Social network formation and inter-firm mobility within the San Diego biotechnology cluster. Research Policy, 36, pp. 438-55. Chiesa, V. and Chiaroni, D., 2005. Industrial Clusters in Biotechnology: Driving Forces, Development Processes, and Management Practices. London: Imperial College Press. Furman, J. L., Porter, M. E. and Stern, S., 2002. The determinants of national innovative Capacity. Research Policy, 31, pp. 899-933. Guzman, D. D., 2012. Metabolix to produce PHA with Antibioticos. [online] Available at: [Accessed 25 April 2013]. Iammarino, S. and McCann, P., 2006. The structure and evolution of industrial clusters: Transactions, technology and knowledge spillovers. Research Policy, 35, pp. 1018-36. Seiffert, D., 2012. Metabolix signs agreement with Madrid manufacturer. [online] Available at: [Accessed 25 April 2013]. Sherpa Group., 2011. KET – Industrial Biotechnology. [pdf] Available at: [Accessed 25 April 2013]. Vassolo, R. S., Anand, J. and Folta, T. B., 2004. Non-additivity in portfolios of exploration activities: A real options-based analysis of equity alliances in biotechnology. Strategic Management Journal, 25, pp. 1045-61. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Joint research and development analysis Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Joint research and development analysis Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/marketing/1474327-joint-research-and-development-analysis
(Joint Research and Development Analysis Essay Example | Topics and Well Written Essays - 1000 Words)
Joint Research and Development Analysis Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/marketing/1474327-joint-research-and-development-analysis.
“Joint Research and Development Analysis Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/marketing/1474327-joint-research-and-development-analysis.
  • Cited: 0 times

CHECK THESE SAMPLES OF Joint Ventures in the Field of Biotech Research

Funding a New Biotechnology Firm

This is according to the research carried out by venture research at the University of New Hampshire in the year 2007.... They also may want to invest if they have prior knowledge of success in that particular field, which in these regard is the biotechnology enterprise.... In 2007 angel investors invested around $26 billion, which amounts to around 57,120 ventures that breaks down to $450,000.... Examples of ventures that started in this way include Dell Company that had its founder Michael Dell start with his own savings....
4 Pages (1000 words) Assignment

Hierarchies, Incentives and Firm Structures of SynChem and Henlin Biotech

Experts in the field of business have defined joint ventures as being a form of enterprise that is created between two or more individuals in order to make profits and attain some limited purpose.... However, joint ventures have been said to have their own predicaments.... This has helped in explaining so many joint research or development ventures have taken place in the bio-tech and high-tech industries in the recent past.... This paper describes the joint venture of SynChem and Henlin Biotech in utilizing their power in chemical research in technologically upgrading the chemical industry in China....
4 Pages (1000 words) Essay

Key Points Arising from Visioning Process on Prosthetic and Orthotic Education

nvestments are made when business people see a potential growth in the field of commerce.... n spite of the progress in the field of medicine, many issues continue to linger unattended.... Medical research still tops the priority list of business ventures.... While legless and armless individuals are becoming more visible today, medical research is on the rise in order to address the situation.... In fact, continuous development is becoming another business field....
12 Pages (3000 words) Essay

Internet And Biotech: Two Professors Take On Two Phenomena

He is also a 2006 Microsoft research Fellow.... (http://research.... To gain a better understanding, he lived in different parts of the world, including Hyderabad, Mumbai (formerly known as Bombay), and Silicon Valley.... Kaushik Sunder Rajan is a biologist who also obtained a Ph....
13 Pages (3250 words) Essay

High Entry Cost Market of Biotech and Pharmaceuticals

As a means of better understanding joint ventures and the motivations behind them, the following discussion will be concentric upon defining and discussing the ways in which joint ventures within the biotech and pharmaceutical field can be explained as ultimately rational business choices that are determined based upon ability to engage with the market, success ratios, and potential future profitability.... Although there is no clear representation of the total cost for bringing a drug to market due to the different levels of research that need to be conducted with each and every drug, a rough estimate provided based upon averages indicate that there is around a 126 million dollar investment that must be provided to bring a single drug to market....
3 Pages (750 words) Assignment

Benefits of Biotechnology

The tools of biotechnology have been widely used for science seed research and plant breeding.... Commercial products based on this research have come to the market.... All these suggest that there is a dynamic shift in the biotech firms and any firm that wants to have sustainable competitive advantage has to bring about changes in its operations and its marketing efforts....
12 Pages (3000 words) Research Paper

Biotechnology as a Result from the Combinational Use of the Knowledge from Pure Sciences

As a research-based industry sector, biotechnology requires strong professional networks and information exchanges between all researchers to reduce duplication of work and instead speed up the process because there is stiff competition among firms that result in short product and innovation cycles.... Within this region, itself are some 17 universities with biotechnology laboratory research facilities, 3 research hospitals, 31 technology transfer centres and 24 other additional research facilities....
6 Pages (1500 words) Research Paper

Biotech Firms: UK Biotech's Shot in the Arm

The reputation of the country's biotechnology is dependent on research by universities, research institutes, and teaching hospitals.... However, this research is threatened because of long-term underinvestment that could see the biotechnology industry in the UK falter compared to competitors such as the United States and Germany (Smith & Bagni-sen, 2006).... This paper 'biotech Firms: UK biotech's Shot in the Arm' will describe how these factors have been met in the USA, but not in the UK and will address what role the UK government might play in improving the performance of its biotechnology sector....
12 Pages (3000 words) Research Proposal
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us