Renovo Harvard Case Solution & Analysis

Assess the business opportunity:

            The business opportunity is about the increase in future growth prospect due to the steps taken for growth prospects.

Market opportunity:

            In the market there is an opportunity to earn and expand through the mean of innovation. The market is very sensitive and only innovative products get the opportunity to expand and earn profits from those products. Although the potential market size is very big to absorb the new entrant’s products into the market and innovation can give extra returns to the company. Currently, USA holds around 30% of the world market in biotechnology industry, therefore the place is best to enter and survive. The market growth for skin tissue damage is expected to raise at the third place, therefore the growth makes it more attractive. The competition is also due to the attractiveness of the market, there are many market players that are available to compete the new entrant because of the high market reputation they hold to compete in the market.


            In biotechnology industry, the industry is based upon the technology, the innovation is only possible through technology, but the survival is also based upon the enough technology to support the company’s products. The production in the industry requires some technological equipment along with the research on the new or existing products is also based upon the technological instruments. The technology is required like oxygen for human beings, the survival is based upon the technology. US is one of the key country for biotechnology industry and other countries include European region, Australia and Canada. These regions jointly have an efficiency to generate revenue amounting to $90 billion. The biotechnology industry requires a sum of $160 billion in 2011 from 160 countries that indicates the industry is operating through innovation of the products. The innovation comes with some expenses therefore it must be considered before going through such expansion plan and it is expected that the figure is about to cross $200 billion for the year 2016 (The Statistics Portal, 2015).


            The management is also required due to the high competition and innovative market. The management is under consideration to fulfil the needs of market through communication with the research and production department. They have to work according to the market requirements and check the work is going as per the communication of the top management. In this case, management is expert because the investors and having good qualifications are managing the business; therefore the maximum can be expected from them.

Business plan:

            The business plan is to give birth to Renovo in the biotechnology industry through targeting the skin diseases. The target market is children under 12 years age because the most burn cases in the UK are the children under age 12 years. The company has other targets like many men and women that has a skin disease or they require healing for their burned part of the skin. The target for healing is little children and other ages for other skin disease like issue damage or other disease.

Investment decision:

            The investment required is GBP 8 million from those 6 million is to be contributed from Zegelaar and Barnes; remaining amount has to be received from Phillip Rattle at Chase Capital. The investment amount is high, therefore the returns must be undertaken, though the market is very attractive and the product development is the key to earn higher returns. The group is following the market approach as product development therefore chances are in favor to undertake the investment. The decision\ must be made in other way as well by investing in European region as well that contributes a total of $23.99 billion revenue to the total world revenues for 2011. This large market must not be ignored (The Statistics Portal, 2015).

            The world market and US market has same share as the world share, the share of skin industry in the World represents a total of 10.1% of the total biotechnology industry. The company has only focused on US that represents a total of 3.2% of the world industry that is not so attractive therefore it is required to focus on Canadian and European market too (Appendix 1).

Renovo Case Solution

What are the key issues in assessing the financial value of early stage, biotechnology companies? Critically analyses the risks.

            In early stage biotechnology industries, there are many reasons that the value cannot be assessed very well....................

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