SHIRE PLC IN 2008

Markides, C, Oyon, D. and Winig, L.

ECCH - 309-146-1

Description:

This case is set in 2008 and examines the unique business model that underpins Shire's success in the last ten years. The new CEO, Angus Russell, is evaluating the changes happening in the pharmaceutical business and needs to decide whether Shire's business model needs to change in any way. The case allows for a fascinating discussion of the pros and cons of the 'open innovation' business model that Shire has adopted, and prepares the groundwork for a generic discussion on what other industries could adopt such a business model. The key questions being addressed are: (1) what are the advantages and disadvantages of 'outsourcing' the discovery of new products and focusing on scaling up the products that others have discovered? (2) how sustainable is such a strategy? What are the key challenges and threats to its sustainability? (3) what are the risks and problems of growing through acquisitions? and (4) what are the organisational constraints to growth and what needs to change (in terms of culture, structure, incentives and people) to facilitate growth?

More information: http://www.ecch.com/casesearch/product_details.cfm?id=88465&rc=4&pg=1&tc=31&adv_search=1

Keywords: Open innovation; Fast second; Intellectual property; Outsourcing R&D (research and development); Acquisitions; Big pharma business

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