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

Targanta Therapeutics Hitting a Moving Target Case Solution


Eli Lilly & Co endeavored to produce revenue by developing the drug in the birth. They invested highly within the development and research. The drug the three phases of studies under their supervision. This is often a highly harmful strategy, as much such drugs may not pass the tests. However, oritavancin was the very best since it passed the tests. The business also focused mainly on its proper objectives. Even though the organization had produced an operating drug with excellent market production, it made a decision to promote the drug if the wasn't any more appropriate because of its business strategy. Instead of selling the drug around the commercial scale, the business offered the drug if the made a decision to divest from creating anti-biotics. For Lilly, proper focus came just before the possibility make money from the drug. The entire process of Lilly appeared to become greatly impacted by its ideology on revenue generation.

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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?