Genentech - Capacity Planning

The plan of efficacy append in mainly show on one harvest-time Avastin and for indications that it is non yet delight in for by FDA. There argon three options: course a new production induction; improve the current mold out; and do nothing. My good word is to increase substance by up the current process. compendium follows: There atomic number 18 genuine pregnant things to consider in this case study. First, the projected pe brightenration channelise judgment that David Ebersman is looking at and mentioned in the appendix be base on real affirmatory assumption. Second, near of the clinical trials for new(prenominal) indications atomic number 18 either mediocre initiated or are not expected to finish truly soon. So, it is probably too archaeozoic to afford a closing on increasing the subject of existing plants or construction a new one. Considering that the decision has to be made straightway, as mentioned in the case, there are some some other facts and figures measure out looking into. With the approximately cheerful assumptions, the projected pe lucreration evaluate for Avastin are 303 Kg in 2005, 1263 in 2010 and 1391 in 2005 respectively. different products are projected to in slightly 1000 Kg in 2005 and 1250 (25% growth) by 2010 and other growth of 25% by 2015. Another 250 Kg are projected in count for other new drugs in 2015.

Genentech has three plants and two melt off manufacturing relationships to provide from 2005 until 2009. Te readiness of three plants in Nov 2004 was 280,000 liters which doer 210 Kgs of drugs. Assuming that only 65% of proteins are recovered, it is 136 Kgs. With 15 batches per year, it leads to 2048 Kgs. prone that Genentech keeps one year price of stock, it does make sense to make a decision on increasing the capacity now but to reiterate, these numbers are based on very optimistic assumption. The cost to systema skeletale new plant is around 500 to 600 million dollars; most of which must be invested by second year. Minimum decorate to wee-wee it ready is 4.5 years. It is worth(predicate) to notice that Genentechs non-GAAP net income in 2003 was 634.9 million...If you want to get a full essay, tell it on our website: Ordercustompaper.com

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