Transcript document

April 24 2008
Genzyme and Lecture
Today
• Progress to date
• Genzyme
• Growth Lecture
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Primary Objective: To show how successful
companies have to continually refine their
strategies to account for marketplace changes.
Describe the key factors in Genzyme’s success to
date.
Does the Drug Development process have to be so
long? Why or why not? How do you think the
process can be improved?
What is a better business model - a cure or a
treatment. Why?
The products in the pipeline are addressing rarer
and rarer diseases. At the same time, genomics is
showing that targeted therapies that address
smaller populations might be a more effective
approach to more common diseases. Are these
important changes in the environment? If so, how
would you address this if you were Genzyme?
• Some questions
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Genzyme
Diverse Business Lines plus and minus
Target first- then do research– what a concept!
Outsource research R&D disproportion
Experienced CEO
Stay independent
Vertically integrated
Creative Financing
Core Competencies
Lots of M&A (mergers and acquisitions)
Role of government
Ultra orphan drugs and competition– the new
environment
– What is the drug delivery process?
Story in Wall Street Journal
Stem Cells Show Promise Treating Diabetes
By JENNIFER CORBETT DOOREN
April 11, 2007 6:11 p.m.
WASHINGTON -- Treating patients with stem cells made from their own blood showed promise as a treatment for 15 patients in
Brazil newly diagnosed with Type 1 diabetes.
Preliminary results of the treatment, which were detailed in the April 11 Journal of the American Medical Association, showed 13 of
the patients have so far been able to able to stop using insulin to treat their disease. The first patient has been followed for three
years with the last patient treated and then followed for seven months.
Type 1 diabetes, or juvenile diabetes, is an autoimmune disorder that's usually diagnosed in children or young adults and it
destroys insulin-producing cells in the pancreas known as beta cells. Insulin is needed to help the body regulate blood sugar,
which if not controlled can cause organ damage and death.
Researchers involved in the study says it's the first time the stem-cell treatment has been shown to work in a small group of newly
diagnosed diabetes patients.
One of the study authors, Richard K. Burt, who is the chief of the immunotherapy division at Northwestern University in Chicago,
said it's way too early to call the treatment a cure and said additional and larger studies would be needed.
The stem-cell treatment regimen is risky. In an interview, Dr. Burt explained that blood was first withdrawn from patients who
ranged in age from 14 to 31, and then frozen. Patients were then given four days of chemotherapy in order to destroy their
immune systems and were also given strong antibiotics to fight infection. The stem cells in the patients' blood were then put back
into the body. Patients were hospitalized for about three weeks.
Dr. Burt said the idea was to "reset" the immune system by shutting down the immune system and then injecting the stem cells in
order to help the body rebuild the system and stop the destruction of insulin-producing cells in the pancreas.
Dr. Burt, who designed the study, said the treatment didn't work in the first patient who had also been treated with high doses of
steroids. In 13 of 14 patients subsequently treated, there were able to stop using insulin and have maintained normal blood sugar
levels. He said the procedure was conducted in patients who had been diagnosed with diabetes in the prior six weeks before too
many beta cells had been destroyed.
Patients enrolled in the study between November 2003 and July 2006 and they were followed until February of this year. The
study was conducted by researchers at the University of Sao Paulo, Ribeirao Preto, Brazil.
Dr. Burt said the study was conducted there because he couldn't find anyone in the U.S. willing to conduct such a study, but he
hopes the encouraging results will make it possible to study the treatment in the U.S.
There's currently no cure for Type 1 diabetes, which affects about two million Americans. Type 1 diabetes differs from the more
common, type 2 form of diabetes, a condition that's often linked to weight-gain and more often diagnosed in people age 45 and
older. Patients with type 1 diabetes are required to take daily doses of insulin.
The study was funded by the Brazilian Health Ministry, Genzyme Corp. and a unit of Johnson & Johnson.
More news
• April 29, 2006, The Wall Street Journal,
Genzyme Corp. won approval from the Food
and Drug Administration to sell the first
treatment for Pompe disease, a rare and
devastating enzyme-deficiency
• Today UPDATE 3-Genzyme first-quarter profit
tops expectations
From web site
• Genzyme Named to FORTUNE’s “100
Best Companies to Work For” List
Genzyme Corp. announced that it has
been selected by FORTUNE magazine as
one of the “100 Best Companies to Work
For” for the second consecutive year.
Genzyme ranked 43 among the nation’s
top employers
Date: April 16, 2007 from website
• Genzyme Announces Successful Completion of Study
Investigating Sevelamer Carbonate in Patients with
Chronic Kidney Disease
• Related LinksRenagel Product Website Genzyme Corp.
(Nasdaq: GENZ) announced today that a recently
completed study of Renvela™ (sevelamer carbonate)
achieved its primary endpoint, demonstrating a statistically
significant reduction in serum phosphorus for
hyperphosphatemic patients with chronic kidney disease
who are not on dialysis.
• Patients treated with Renvela also achieved a significant
reduction in calcium-phosphorus product and in LDL
cholesterol. The drug was well tolerated with a safety profile
consistent with the clinical experience of patients on dialysis
using Renagel® (sevelamer hydrochloride). The multicenter, single arm, open-label trial involved 49 patients at
multiple study sites throughout Europe and Australia.
Growth
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Why do companies need to grow?
How to fumble the ball- example of AT&T
Step 1. 1984 Divestiture
Step 2
Act on “Convergence of Computers and
Communications”
– Start own computer business- big loser
– Acquire NCR- bigger loser
– 1996 Divest NCR (received 3.4B after investing 9.4 B)
• Step 3 1994 Build on growing cellular business
– Acquire McCaw Cellular for 11.6 B
– Invest additional 3.4B
– Can’t really combine wireline and wireless so sold for 10.6B
• Step 4 1998 Build Broadband by acquiring cable
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Bought TCI and MediaOne for 112M
Could not integrate
2000
Sold for 72B
2006
“Merged” with SWB
Result: in 10 years, AT&T wasted $50B!!
• SBC To Acquire AT&T, Creates Premier, Global Provider
The $16 billion transaction creates a company with robust, highquality network assets, both in the United States and around the
globe, and complementary expertise and capabilities. It will have
the resources and skill sets to innovate and more quickly deliver
to customers the next generation of advanced, integrated IPbased wireline and wireless communications services.
• SBC Names Senior Management Team for New AT&T
Communications Inc. today announced the senior management
team that will lead the company when its acquisition of AT&T is
completed, which is expected later this month. At that time, SBC
will adopt AT&T, Inc. as the new company name.
• SBC Communications to Adopt AT&T Name
SBC will adopt the AT&T name following completion of its
acquisition of AT&T, which is expected in late 2005.
In Search of Excellence
Peters and Waterman 1983
Results from highly regarded companies
• Bias for Action
• Close to the Customer
• Autonomy and Entrepreneurship
• Productivity through people
• Hands-on value-driven
• Stick to the knitting
• Simple form, lean staff
• Simultaneous loose-tight properties
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
IBM
3M
Amdahl
Gould
Westinghouse
Rockwell
Eastman Kodak
Boeing
K Mart
Data General
Wang Labs
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat RIP
IBM
3M
Amdahl
Gould
Westinghouse
Rockwell
Eastman Kodak
Boeing
K Mart
Data General
Wang Labs
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat RIP
IBM
Near Death early 90s
3M
Amdahl
Gould
Westinghouse
Rockwell
Eastman Kodak
Boeing
K Mart
Data General
Wang Labs
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat RIP
IBM
Near Death early 90s
3M
Still thriving
Amdahl
Gould
Westinghouse
Rockwell
Eastman Kodak
Boeing
K Mart
Data General
Wang Labs
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat
IBM
Near Death early 90s
3M
Still thriving
Amdahl
IBM mainframe clone dead
Gould
Westinghouse
Rockwell
Eastman Kodak
Boeing
K Mart
Data General
Wang Labs
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat
IBM
Near Death early 90s
3M
Still thriving
Amdahl
IBM mainframe clone dead
Gould
RIP
Westinghouse
Rockwell
Eastman Kodak
Boeing
K Mart
Data General
Wang Labs
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat
IBM
Near Death early 90s
3M
Still thriving
Amdahl
IBM mainframe clone dead
Gould
RIP
Westinghouse
RIP
Rockwell
Eastman Kodak
Boeing
K Mart
Data General
Wang Labs
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat
IBM
Near Death early 90s
3M
Still thriving
Amdahl
IBM mainframe clone dead
Gould
RIP
Westinghouse
RIP
Rockwell
Slimmed Down
Eastman Kodak
Boeing
K Mart
Data General
Wang Labs
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat
IBM
Near Death early 90s
3M
Still thriving
Amdahl
IBM mainframe clone dead
Gould
RIP
Westinghouse
RIP
Rockwell
Slimmed Down
Eastman Kodak
Slimmed Down
Boeing
K Mart
Data General
Wang Labs
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat
IBM
Near Death early 90s
3M
Still thriving
Amdahl
IBM mainframe clone dead
Gould
RIP
Westinghouse
RIP
Rockwell
Slimmed Down
Eastman Kodak
Slimmed Down
Boeing
Lost to Airbus, now recovering
K Mart
Data General
Wang Labs
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat
IBM
Near Death early 90s
3M
Still thriving
Amdahl
IBM mainframe clone dead
Gould
RIP
Westinghouse
RIP
Rockwell
Slimmed Down
Eastman Kodak
Slimmed Down
Boeing
Lost to Airbus
K Mart
Think Walmart
Data General
Wang Labs
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat
IBM
Near Death early 90s
3M
Still thriving
Amdahl
IBM mainframe clone dead
Gould
RIP
Westinghouse
RIP
Rockwell
Slimmed Down
Eastman Kodak
Slimmed Down
Boeing
Lost to Airbus
K Mart
Think Walmart
Data General
RIP
Wang Labs
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat
IBM
Near Death early 90s
3M
Still thriving
Amdahl
IBM mainframe clone dead
Gould
RIP
Westinghouse
RIP
Rockwell
Slimmed Down
Eastman Kodak
Slimmed Down
Boeing
Lost to Airbus
K Mart
Think Walmart
Data General
RIP
Wang Labs
RIP (nice concert hall in Boston)
Polaroid
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat
IBM
Near Death early 90s
3M
Still thriving
Amdahl
IBM mainframe clone dead
Gould
RIP
Westinghouse
RIP
Rockwell
Slimmed Down
Eastman Kodak
Slimmed Down
Boeing
Lost to Airbus
K Mart
Think Walmart
Data General
RIP
Wang Labs
RIP (nice concert hall in Boston)
Polaroid
RIP
Revlon
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat
IBM
Near Death early 90s
3M
Still thriving
Amdahl
IBM mainframe clone dead
Gould
RIP
Westinghouse
RIP
Rockwell
Slimmed Down
Eastman Kodak
Slimmed Down
Boeing
Lost to Airbus
K Mart
Think Walmart
Data General
RIP
Wang Labs
RIP (nice concert hall in Boston)
Polaroid
RIP
Revlon
Long decline
United Technologies
In Search of Excellence Peters and Waterman
1983
Some Companies cited as “excellent (1961-1981)
DEC
Missed PC boat
IBM
Near Death early 90s
3M
Still thriving
Amdahl
IBM mainframe clone dead
Gould
RIP
Westinghouse
RIP
Rockwell
Slimmed Down
Eastman Kodak
Slimmed Down
Boeing
Lost to Airbus
K Mart
Think Walmart
Data General
RIP
Wang Labs
RIP (nice concert hall in Boston)
Polaroid
RIP
Revlon
Long decline
United Technologies Doing OK
Revlon vs. Estee Lauder