Essay --

Mid Term Assignment - GenzymeHIMP6170 Professor Aditya PaiShweta Harwalkar (ID 212294831)2/13/2014 Company / portfolio for analysis (Refer to addendum 1, 2, 3 & 4)Genzyme Corporation (Genzyme), a subsidiary of Sanofi-aventis, is a biotechnology follow which is principally engaged in developing products and services for rare genetic disorders. The company has its operations worldwide with its principal concentration in the US and the UK. Genzyme is headquartered in Massachusetts, the US. The parent company, Sanofi, is a global and diversified healthcare leader. Genzyme is currently organized into cardinal business units Rare Diseases and Multiple Sclerosis.Rare Diseases Focusing on uncommon and underserved medical conditions, the Rare Disease business unit is currently focused on three medical areasGenetic Diseases - Pioneering Solutions to Lysosomal Storage Disorders Orphan drugsEndocrinology - genetically engineered version of thyroid-stimulating hormone (TSH)Cardiovascular D isease - inherited disorders, such as familial hypercholesterolemia, a genetic and potentially life-threatening form of severely high cholesterol that often doesnt respond to traditional treatmentsMultiple sclerosis Multiple sclerosis is a chronic disease that affects each person differently, with symptoms ranging from numbness in the limbs or forgetfulness to paralysis or loss of vision. Revenues and growth trends(Refer to Appendix 5)Sanofi acquired Genzyme for $20.1 billion. New Genzyme was successfully merged resulting in sales growth of 16.9%. Sales for Fabrazyme (agalsidase beta), a treatment for Fabry disease, nearly doubled. Sales for Myozyme and Lumizyme (alglucosidase alfa), indicated in Pompe d... ...better compensationsShareholdersA leader in orphan drug marketplace will attract more shareholdersGenzyme must increase economic value created for shareholdersRetail ChainsReducing the retail chain can help Genzyme manage at lower price or have higher put onChanges in the retail chain system will probably affect the profit margin of the drug giving medicationWork closely with the government to make sure that the orphan drugs are available in that country/marketGovernment regulates the price of drugs - If Genzyme does not lower the cost of orphan drugs, then it is very likely that government will set a lower price, which will castrate Genzymes profitOther rare disease associationsCommunicate effectively and work closely with these rare disease associationsMost rare diseases do not have treatment available - High pricing will prevent some patients from getting treatment