Genzyme’s Focus on Orphan Drugs

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Despite these merits, diversification can lead to a loss of focus on orphan drugs. New products require intensive research and development. Each of the diverse products requires a different setting in research and development. Directing resources to the new products affects the strategic focus of the firm. Such scenario would decapitate the innovation needed in research and development of orphan drugs.

- What recommendations would you offer Genzyme for the future?

Genzyme Corporation has developed a niche market for the orphan drugs they have continued to develop over the years. They should continue providing excellent treatment to rare diseases. The estimated rare diseases with no known treatment are well over 4,000 worldwide, though only a small proportion of 5-6 per cent of the global population are affected by these diseases. Continued focus on treatment to these disorders provides a niche market for the company. There is a need for these drugs among the affected patients with little option drugs being offered in the market. Their focus indicates that they have a sustainable and innovative business strategy that solves existing problems in the society (Tidd 2001). The firm also enjoys an upper hand in this niche market. Therefore, they should increase their focus on developing more orphan drugs to enhance the barrier of entry to potential competitors. On a more social focus, the firm can offer focused medical services directly to patients so as to increase the administration of their products to the populations in need. Diversifying into such an activity and increasing their penetration to more countries and regions would enhance the financial sustainability of Genzyme.

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Bibliography

Paarlberg, R., 2009. Starved for science: How biotechnology is being kept out of Africa. Harvard University Press.

Miski, A., 2016. Analyzing Genzyme’s Strategy of Focusing on Orphan Drugs. American Journal of Engineering Research (AJER), 5(8), p.33-34.

Schilling, M.A., 2005. Strategic management of technological innovation. Tata McGraw-Hill Education.

Sharma, A., Jacob, A., Tandon, M. and Kumar, D., 2010. Orphan drug: development trends and strategies. Journal of Pharmacy and Bioallied Sciences, 2(4), p.290.

Tidd, J., 2001. Innovation management in context: environment, organization and performance. International Journal of Management Reviews, 3(3), pp.169-183.