Genentech - Capacity Planning

The plan of efficacy summation in mainly constitute on one intersection Avastin and for indications that it is not yet love for by FDA. There atomic number 18 three options: course a new production adeptness; improve the current manoeuver out; and do nothing. My guide onport is to increase substance by up the current process. synopsis follows: There argon true pregnant things to consider in this case study. First, the projected pe brightenration pass judgment that David Ebersman is looking at and mentioned in the appendix argon base on genuinely affirmatory assumption. Second, near of the clinical trials for new(prenominal) indications be either nevertheless initiated or be not expected to finish real(prenominal) soon. So, it is probably too archaeozoic to pay back a decisiveness on increasing the qualification of existing plants or make a new one. Considering that the finality has to be made instanter, as mentioned in the case, there are some opposite facts and figures evaluate looking into. With the well-nigh sanguine assumptions, the projected pe engagementration range for Avastin are 303 Kg in 2005, 1263 in 2010 and 1391 in 2005 respectively. former(a) products are projected to in slightly 1000 Kg in 2005 and 1250 (25% growth) by 2010 and other growth of 25% by 2015. Another 250 Kg are projected in pith for other new drugs in 2015.

Genentech has three plants and two press manufacturing relationships to provide from 2005 until 2009. Te might of three plants in Nov 2004 was 280,000 liters which fashion 210 Kgs of drugs. Assuming that only 65% of proteins are recovered, it is 136 Kgs. With 15 batches per year, it leads to 2048 Kgs. effrontery that Genentech keeps one year deserving(predicate) of stock, it does make sense to make a decision on increasing the capacity now but to reiterate, these numbers are based on very optimistic assumption. The cost to spend a penny new plant is around 500 to 600 million dollars; most of which must be invested by second year. Minimum snip off to seduce it ready is 4.5 years. It is worth to notice that Genentechs non-GAAP net income in 2003 was 634.9 million...If you want to get a full essay, differentiate it on our website: Ordercustompaper.com

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