Case ID: 709002
Solution ID: 5182
Words: 1401
Price $ 45

Targanta Therapeutics Hitting a Moving Target Case Solution

Case Solution

Eli Lilly & Co endeavored to create revenue by developing the drug from the birth. They invested highly in the development and research. The drug the 3 phases of clinical tests under their supervision. This can be a highly dangerous strategy, as numerous such drugs might not pass the tests. However, oritavancin was the best because it passed the tests. The organization also focused mainly on its proper objectives. Although the organization had created a practical drug with excellent market production, it made the decision to market the drug if this was no more suitable for its business strategy. Rather than selling the drug on the commercial scale, the organization offered the drug if this made the decision to divest from creating anti-biotics. For Lilly, proper focus came prior to the potential profit from the drug. The process of Lilly seemed to be greatly affected by its ideology on revenue generation.

Excel Calculations

Questions Covered

Employing two business model generation canvases compare and contrast the original revenue generation business model developed by Eli Lilly & Co. with Targanta’s approach to its revised business model

From an investor’s perspective, discuss why Intermune paid $50 million + royalty commitments and why Targanta was able to buy oritavancin for only $ 1 million?

Did Targanta successfully de-risk the drug? What is the meaning/significance of de-risking a drug?