Millennium Pharmaceuticals Inc. (A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Question 02: The connection that R&D Management has with business characteristics and with business model and any important issues about their R&D Management.

The research and development department of Millennium Pharmaceuticals is well-equipped and efficient, which has been one of the major sources of making the company grow in the medical industry. The R&D Management has worked towards the goal of improving the technology used within the company; in addition it has also worked along the lines of developing business models and strategic fits with related industry drug manufacturers in order to make the company grow into a bigger entity. The connection of R&D Management of Millennium Pharmaceuticals has been critical in the success of the organization. As the case states, large pharmaceuticals companies spent 15 to 20 percent of sales in the R&D. The business characteristic of Millennium Pharmaceuticals is aligned with the research and development department of the company. Before Millennium Pharmaceuticals no other genomic manufacturing company was having R&D in their arsenal. Millennium Pharmaceuticals was the initiator to this concept and since the company succeeded with the concept; other companies soon followed it.

The characteristic of business in Millennium Pharmaceutical ’s R&D Management developed partnerships with major drug development firms in order to bring the company to fund them and provide the required finances. It also made Millennium Pharmaceuticals to sign partnerships treaties with companies to actually enhance, rather than stymie the ambitious goals for future growth of the company. Along with this management’s negotiation strategy for strategic alliance also reflected the company and its long-term goals, which can make careful cuts for the firm. This was being practiced by other large firms which was resulting slow progress for them in the industry. Millennium Pharmaceuticals through its strong R&D Management basically developed agreements that improved the company’s situation hence; they earned better results and profits from the move. For example, Millennium Pharmaceuticals alliance which found a potential target for drug along with its partner would screen within the given time which in other cases would have been reverted back to the Millennium Pharmaceuticals.

Along with this the R&D Management of Millennium Pharmaceuticals made the company retain the rights to unforeseen detections and information while forming a partnership with a similar drug manufacturer. The company even granted rights to the partners which were of great value to them because it was creating the opportunity of retaining new knowledge and the remaining rights of others along the way. This characteristic of Millennium Pharmaceuticals’ R&D model focused on selecting rights among other partners for the company, largely because the big company executives tended to think within the same strategic lines by focusing on the rights that actually fell within the strategic focus. The R&D has made the company grow in the industry and in genomics. The business characteristics have been in connection to the R&D Management, which has structured the company into performing activities that have made the industry competent and profitable for all players.

The business model and its connection with Millennium Pharmaceuticals’ R&D actually made the company grow rapidly. The company was focused on developing strategic alliances and partnerships with the industry players though the lines of strongly built R&D of the company. In 1997, as the case states, Monsanto approached Millennium Pharmaceuticals to install state of the art genomics technologies in their company. R&D Management of Millennium Pharmaceuticals was quite advanced and as per the requirements of the industry therefore; it actually helped Monsanto to structure itself along the technical lines of R&D. The business model of Millennium Pharmaceuticals made an agreement with the company to replicate and clone its technology platform with Cereon Genomics which was a subsidiary of Monsanto. Through this strong business model and connection with R&D, the company delivered the technology to Monsanto with the scientific staff of 100 scientist.

Millennium Pharmaceuticals transferred the business model through strong R&D to Monsanto by appointing middle-ranked scientist and technologists to the new company. By providing R&D services to Monsanto, Millennium Pharmaceuticals hired another 300 employees to fulfill the requirements of this technology transfer. Along with this, the connection of both the business model and R&D Management of Millennium Pharmaceuticals was aimed to improve the drug development process faster and with cost effectiveness......................................

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