Enbrel: The Sting of Success

Immunex, a small Seattle biotechnology company, stumbles into a hugely successful and groundbreaking product. Enbrel, a tumor necrosis factor, is immediately recognized as the most effective treatment for rheumatoid arthritis-a $300 billion market in the United States. After almost 20 years of unprofitability, Enbrel is a lifesaver for Immunex. But it could also become the company's worst nightmare. Immunex, after years of being cash-starved, has not been able to build production capabilities to satisfy the sudden and massive demand for its drug. This case illustrates the decision-making process on how and when to build commercialization capabilities in a small biotechnology company. In addition it explores options for reacting to an unexpected demand in a hypercompetitive market.