||In the pharmaceutical industry, the development of new drugs are usually invested by well-funded large-scale pharmaceutical group, which are capable of such time-consumimg process and low chances of success. Until 1982, Genetech Biotech Company cooperated with Eli Lilly And Company-a pharmaceutical cooperation. They implemented the recombinant DNA technology into pharmaceutical industry, the new era of biologics industry began. Since then, previous dominant big pharmaceutical companies started to cooperate with small biotechnology ones. However, theses small and medieum biotech companes often close down due to unsustainable access to funds. For a newly founded small biotech company, deciding product portfolio in which becoming cash flow to support development of new drugs is an important issue.|
In this study, the auhor choosed InnoPharmax as a case, which is a small biotech compant focusing on "drug delivery system" technology.Two issues to be discussed in this study, firstly, is there synergy amoung current product portfolios of InnoPharmax? Secondly, in order to create synergy, how to use various tangible and intangible resources of InnoPharmax?
The study concluded that, synergy does exist. Most of the products related to research and development team of specialists is closely related to their “drug delivery system” technology. These intricate synergies can be categorized into three:
1. The operational synergy: shared sales channels, shaerd R&D technology, shared talents, shared procurement of raw materials, brand extension, etc. to generate operational synergy..
2. The financial synergy: the exclusive delievery system can be applied to many different drugs development, also the transfer of technology to international pharmaceutical companies earned through authorized capital, which helps lower business risks.
3. The managerial synergy: GM’s network of connection helps to raise funds and became the agency of many products, enhanceing bargaining power to suppliers and distributors.