Analytical Answer of Abgenix Article

ABGENIX AND THE XENOMOUSE

2007

1 . What arguments would you lead to accept pharmacol and what would you lean toward Biopart

R . Scott Greer , the President and Chief Executive Officer of Abgenix was faced with a very touch decision in determining the route to take in bringing to market a drug based on Xenomouse technology . The three options he had to consider included completely handing off the product for phased payments , becoming a partner in a joint venture and sharing both costs and income , or continuing to work on the drug

independently in the hopes of achieving FDA approval and entering the pharmaceuticals marketplace with the result

A compelling argument to choose Pharmacol to hand off ABX-EGF is their robust balance sheet , pharmaceuticals offerings in a number of areas and a large and talented sales team . The management of Abgenix estimated a potential of 700 million in sales per year after the drug was on the market for ten years . Those are very compelling figures and represent a very large return on investment for the initial development of Xenomouse technology

Biopart , by contrast , did not represent a future of such high profits with such low risk . Instead , with the opportunity to enter into a joint venture , Biopart was attractive because of the opportunity for Abgenix to remain deeply and integrally a part of research on the drug going forward . Additionally , Biopart had expertise in pharmaceuticals related to cancer and could perhaps focus more of its specialised sales and marketing force in support of ABX-EGF

2 . Needs revision - no question stated , only a table given

Notes : Opinions on Pharmacol came from page 10 . Opinions on Biopart came from pages 3 and 10

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