Case Detail

Case Summary

Bayer & Millennium Pharmaceuticals

Case Number: 5-104-014, Year Published: 2004

HBS Number: KEL068

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Authors: Alicia Loffler; Markus Solf; Edward Zajac

Key Concepts

Biotechnology, Alliances, Business Model Change, Strategic Alliances, Product Development, Valuation, Management Strategy, Growth Strategy

Abstract

In the year 2000 Millennium Pharmaceuticals was the poster child for successful genomic companies. Millennium's fast growth and exuberant valuations were due to the elegant alliances the company had forged with top pharmaceutical, biotechnology, and agricultural companies. However as the market shifted and Millennium was forced to fully integrate, the type and structure of its alliances no longer worked. This case illustrates how strategic alliances are used in biotechnology as growth tools and demonstrates the impact that market conditions can have on the evolution of alliances.

Number of Pages: 21

Extended Case Information

Teaching Areas: Biotechnology, Management, Organizational Behavior, Strategy

Geographic: US/Germany

Industry: Pharmaceuticals/Biotechnology

Organization Name: Bayer

Organization Department: Pharmaceutical Division

Organization Size: Large

Decision Maker Position: President

Decision Maker Gender: Male

Year of Case: 2002