The transaction is expected to close in the fourth quarter, pending approval from regulatory agencies and GelTex shareholders.
DermaCare Do you think DermaCare will be successful? Why or why not? Be as specific as possible. How much capital does DermaCare need to raise in order to become a self sustaining business?
Please explain the rational by which you arrived at this number. Which financing offer would you accept? Describe the aspects of each offer that are appealing to you and those that are not.
How attractive are these offers to you? Please also discuss the costs and benefits of Angel funding relative to venture capital funding. NetFlix What is your assessment of the NetFlix business model?
How does NetFlix plan to achieve its long-run objective? What are the basic elements of a subscriber model?
Construct an annual subscriber model for NetFlix that can be used to forecast the expected cash flows for a new subscriber over the next five years.
What is the value of a new NetFlix subscriber? Assuming that NetFlix does not change its current business model, what is the value of NetFlix.
What changes, if any, would you suggest be made to its existing business model? What are the value implications of these changes? Is it a good idea to approach new investors before FDA approval?
Please explain your argument. Is this a good investment? Please value the joint venture using scenario analysis. Assume that the following risks are quantifiable in mid Scientific risk is almost entirely resolved. But the main problem is regulatory delay.
For all other parameter values please use the averages provided in the case. Please adjust the cash flows to reflect the delays in the market entry for Renagel and explain the logic behind your assumptions. How does the value of the joint venture change?
Please use the decision analytic measure to value the real option. The investment can be staged according to the following steps: If Phase III is passed: Assume throughout that the investment is terminated in 5 years.
The following questions will help you structure your analysis. Describe the payoffs to the Redeemable Preferred RP and Convertible Preferred CP as a package of securities in five years note that there are dividends that accrue.
At what point would the CP holders convert? Given the contract structure offered by RBS group how does the implied value of the company differ from the valuation actually suggested by RBS? In your opinion, what parts of the contract affect these differences? How does this capital structure affect the offer from RSC?
How do you value the RSC offer? Describe the payoffs of the proposed Series E Preferred in Exhibit 2.Genzyme is a large company and has grown on the basis of joint ventures and alliances.
It has been taking risks in the past which has led the firm to success. . In early , a representative for Genzyme Corporation is meeting up with a joint-venture negotiation team in an effort to develop terms for a proposed joint-venture agreement. The joint-venture (JV) will, if agreed upon, combine the capabilities of Genzyme, a large pharmaceutical company and GelTex, an early-stage bio-tech research company with only two products in their pipeline.
Genzyme Geltex Joint Venture. Early in , Genzyme Corporation began negotiations with Geltex Pharmaceuticals in an attempt to launch a joint venture to market Geltex's first product, RenaGel. Geltex was a young biotech research company with only two products in its pipeline.
Genzyme/GelTex Pharmaceuticals Joint Venture In early , Greg Phelps, EVP of Genzyme Corporation, met with members of a joint-venture negotiating team to develop proposed terms of a joint-venture agreement.
The venture would combine capabilities of Genzyme and GelTex Pharmaceuticals to market GelTex's first product, RenaGel.
Genzyme is a large company and has grown on the basis of joint ventures and alliances. It has been taking risks in the past which has led the firm to success.
. This is a Darden case benjaminpohle.com March , an executive vice president of Genzyme Corporation must develop the terms by which the $ billion (revenue) firm will form a joint venture with a small biotechnology firm to make and market a new drug.