Genzyme/Geltex Pharmaceuticals Joint Venture

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Case

Reference no. UVA-F-2078

Spanish language

Subject category: Finance, Accounting and Control

Authors: Bob Bruner (Darden School of Business, University of Virginia); Samuel E Bodily (Darden School of Business, University of Virginia); Pierre Jacquet (Darden School of Business, University of Virginia)

Published by: Darden Business Publishing

Originally published in: 1999

Version: 12 January 2023

Length: 13 pages

Data source: Published sources

Topics: Joint ventures; Monte Carlo simulation; Research and development; Risk analysis; Valuation; Finance

Share a link: https://casecent.re/p/199315

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Abstract

This is a Spanish version. In March 1997, an executive vice president of Genzyme Corporation must develop the terms by which the USD518 billion (revenue) firm will form a joint venture with a small biotechnology firm to make and market a new drug. The tasks for the decision maker are to estimate the enterprise value of the new joint venture, recommend how large an interest to acquire in the venture, and determine what price to pay for that interest and when. The case may be used to pursue some or all of the following objectives: (1) exercising analytical techniques, (2) introducing a framework for creating value and reducing risk, (3) exploring the impact on value of a hidden option (staged investing), and (4) visualizing risk and its implications.

Industry:

Health care