Bayer & Millennium Pharmaceuticals

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.