Biosidus: Biotecnologia En La Patagonia

18 Pages Posted: 2 Jun 2017

See all articles by Gregory B. Fairchild

Gregory B. Fairchild

University of Virginia - Darden School of Business

Manuel Garcia Diez

University of Virginia - Darden School of Business

Antonio Com

University of Virginia - Darden School of Business

Alejandro Carrera

University of Virginia - Darden School of Business

Roberto Vassolo

University of Virginia - Darden School of Business

Abstract

The case follows an Argentinean biotech firm as it sets future firm strategy and decides how to fund it. Specifically, the firm is working on a method to produce human growth hormone through the milk of cloned cows. Economic and political uncertainties in Argentina complicate an otherwise challenging strategic decision. Students are required to make a decision based on the conditions present at the time of the case.

Excerpt

UVA-S-0115

Rev. Aug. 22, 2012

BioSidus: Biotecnologia en la Patagonia

In early August 2002, Marcelo Argüelles, son of Antonio Argüelles, the founder of BioSidus, faced a very tough decision concerning the future of the company. BioSidus could no longer implement its 10-year business plan given the current political and economic crises in Argentina. Therefore, Argüelles needed to reevaluate his company's direction along three potential paths. First, should his company focus on its current product base and harvest its existing portfolio of drugs? Second, should it invest in R&D despite adverse market conditions? Third, should it forge a new international partnership to establish a greater market for its current products?

BioSidus's latest R&D development involved farm animal cloning techniques that used animals to produce new proteins, which would then be secreted and harvested from their milk. After one unsuccessful attempt, the company anxiously awaited the birth of its second cloned calf. If successful, this new technique would significantly reduce the production costs of proteins, transferring the production line from a multi-million-dollar state-of-the-art facility to a cow (see Exhibit 1 for an illustration of the cloning process).

Argüelles was confident that this new technique would revolutionize the industry. He was uncertain, however, of what it would mean for the rest of his company if the cloning was unsuccessful. Faced with a restrictive financial market and weak demand, Argüelles was not sure the company would have enough strength to complete the project.

. . .

Keywords: Biotech entrepreneurial funding political uncertainty cloning

Suggested Citation

Fairchild, Gregory B. and Garcia Diez, Manuel and Com, Antonio and Carrera, Alejandro and Vassolo, Roberto, Biosidus: Biotecnologia En La Patagonia. Darden Case No. UVA-S-0115, Available at SSRN: https://ssrn.com/abstract=2975196 or http://dx.doi.org/10.2139/ssrn.2975196

Gregory B. Fairchild (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/fairchild.htm

Manuel Garcia Diez

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Antonio Com

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Alejandro Carrera

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Roberto Vassolo

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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