Cambridge Laboratories is essentially a fee-for-service provider of laboratory testing. There are less than 0.5% of sales on research and development and has relatively few patents for a biotech company. It now has the opportunity to invest $ 5 Million Euros to establish a joint venture with an Australian proteomics company, on a drug discovery (license fees) model works. The founder of this company believed that its technology could eventually in the discovery of new drugs that would lead genera … Read more »

Cambridge Laboratories is essentially a fee-for-service provider of laboratory testing. There are less than 0.5% of sales on research and development and has relatively few patents for a biotech company. It now has the opportunity to invest $ 5 Million Euros to establish a joint venture with an Australian proteomics company, on a drug discovery (license fees) model works. The founder of this company believed that its technology could eventually in the discovery of new drugs that would generate substantial royalties. While proteomics company has excellent technique, some of the spiritual leaders in the field on his staff, and partnerships with some impressive technology his company is still unproven. Cambridge Labs is also concerned that its existing relationships with major pharmaceutical companies could be jeopardized be if it starts to take an intellectual property position in proteomics. In addition, the Australian company consists primarily of graduate students in molecular biology, while Cambridge Labs is dominated by businessmen whose focus is the strong financial returns for shareholders. The cultural differences between an Australian science-oriented laboratory and a publicly traded American company outsourcing become apparent during the negotiation phase of the joint venture proposal.
«Hide

from
Henry W. Lane,
David Wesley,
Dennis Shaughnessy
Source: Ivey Publishing
24 pages.
Release Date: 23 March 2004. Prod #: 904M13-PDF-ENG
Cambridge Laboratories: Proteomics HBR case solution

[related_post themes="flat"]