Genentech 2020“Matching Customer’s

expectations for innovative future”

Shoeb Ahmed IlyasHealth Care Consultant

INTRODUCING GENENTECH Genentech is a leading biotechnology

company that discovers, develops, manufactures and commercializes pharmaceutical products to treat patients with significant unmet medical needs.

Genentech commercialize multiple biotechnology products and also receive royalties from companies that have licensed our technology.

Age & Size

Genentech was founded more than 30 years ago, in 1976, by the late venture capitalist Robert A. Swanson and the biochemist Dr. Herbert W. Boyer

1,100 researchers and scientists and 125 post-doctors

198,300 employees Main players: Amgen, Genentech,

Biogen Idec, Genzyme.

Mission Statement

With high professional knowledge and commitment, use human genetic information to discover, develop, manufacture and commercialize medicines to treat patients with serious or life-threatening medical conditions.

Vision To create a free

genetic hereditary disease environment through scientific discovery and production of pharmaceutical drugs acting in the DNA level for correcting of mutations causing genetic originated cancers and other genetic diseases.

Diagnosis of the Main ProductsGenentech’s is among the world's

leading biotech companies, with multiple products on the market and a promising business development pipeline.

Genentech’s main products are in Oncology, Immunology,

Disorders of Tissues, Growth and Repair, Neuroscience and Infectious Diseases

GENENTECH OVERVIEW

Main Revenue streams

Product sales-90% s

Royalties-9% Contracts-1%

Main Product lines Avastin – 24% Rituxan – 23% Herceptin-16% Lucentis-4% Xolair – 3%

Characteristics of Bio-Tech Market

Intensively dynamic and innovativeMedical and social achievements.Unlimited life cycle, in Business for life.Life cycled interrupted/replaced by more

innovative technologies of recent research achievement.

Final solution for genetic cause based diseases.

Genentech’s Business Strategy Corporate strategy Growth by concentration

capturing market share Repositioning the product through

new indications Growth by diversification

- Expand consumers’ base - Shared Technologies Business unit strategy Focus on oncology Functional strategies Marketing (19%) R&D (24%) Strategic collaborations management Regulatory compliance Strong state based strategies to

stimulate industry growth. Economies of scale due to

geographical clustering

Genentech’s Business Model

Ref- http:// mackcenter.wharton.upenn.edu/biosciences

Genentech’s Customers

Anticipation of Future-2020

No one can reliably predict Genentech emerging life science technological biomolecules may be successful, or fall short of expectations—or whether the customers will accept or reject these new biomolecules for given treatment. What we guess for certain is that multiple futures are possible. So how Genentech will describe, anticipate and plan this possible futures?

Genentech-2020 ApproachGenentech team must monitor

Biotechnology industry trends, winning and losing strategies, best practices and critical issues, which must aim to provide insights of interest and value to the customers benefiting from bioscience technologies.

If Genentech to be successful, it must focus on new Biotechnology therapies which may originate from the molecular level of organs, tissues, cells, genes and proteins— and from the convergence of biomedicine/systems biology and information technology, telecommunications and nanotechnologies.

CHALLENGES FOR GENENTECH

One can expect new types of sensors, implants, drug delivery systems and artificial organs, improved diagnostics which may detect communicable diseases before symptoms appear, new forms of personalized care and customized medicine will be equally challenging for Genentech success in 2020.

To Match Future Challenges Genentech must focus on next Generation Operating Models which may Focus on Value Chain for Virtual Extensions.

Feasible Next Generation Operating Business Model Choice for Genentech:

Profiting Alone vs. Profiting Together

Future Dilemmas for Genentech Will the scientific research be

successful as promised? Patients and practitioners want and need medical solutions to treat and cure disease, but science falls far short of expectations.

Genomics, stem cells research cause much commotion but fail to achieve their early promise. Research investment dries up and remains stalemated about ethical “what ifs.”

stem cell research, tissue engineering and therapeutic cloning could be restrained by public policy.

Risk Of Bioterrorism. Shut down phenomenon

SWOT AnalysisStrengths --Well established reputation-professional and high qualified researchers-Enough financial support for the research projectsContribution to community health--Patient advocacy-Excellent image -Recognized and certified contribution to global health-Resources spent to strengthen its pipelines instead of making alliances

Weaknesses-Time scales and pressure to keep the promises-Strict confidentiality procedures -High security procedures for researchers and products-Genentechs partnership with Roche restricted its growth & expansion in Europe-Money spent on specialized trainings as opposed to mass marketing

Opportunities- New research molecules in field of oncology, Immunology, Cardiovascular and Tissue Repair.-Reputation as best cancer drug developer and vanguard leader of biotechnology field, Maintaining form hold as marked leader.-Expansion into larger international markets like Asian.

Threats-Dilemma on successful results for innovative discoveries.-Potential threats from Pfizer and Novartis, who are acquiring small biotech branches as way of capturing more of biotech market.-Shut down risk-Bioterrorism risk

CONCLUSION

Genentech’s success in 2020,depends on –Capabilities of its talented research team. Capacity to innovate the specialized,

highly-effective drugs.By bringing new molecules to the market.By moving towards “out-license

technology platforms and profiting from royalty payments”

stronger patent protection and Re-investment in R& D.

Genetech’s Contribution to Future Health

http://www.youtube.com/watch?v=qCRUpxqKnkY

THANK YOU FOR YOUR ATTENTION !