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Submitted By AneikaElliott
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Nucleon Case
3 Options are available as below:

Option A: Building pilot Plant
Advantage:
1) Nucleon will be well prepared to do in house projects in future.
2) They would control absolutely everything that is going on with the clinical trial until it reaches phase 3.
3) They would also acquire vital experience when it comes to tech and regulatory issues.
4) First step towards vertical integration

Disadvantage:
1) Obsolescence: mammalian cells fermentation as new promising technology
2) Idle plant: uncertainty about clinical trials outcome
3) Loss of focus from core R&D activities
4) Time: necessity of hiring technicians with manufacturing experience
5) Major capital investment

Option B: Contract manufacturing
Advantage:
1) No major capital investment
2) Retain ownership rights until phase 3 of clinical trials.

Disadvantage:
1) Synergies through partnership - Time consuming negotiations (many months)
2) Long technology transfer (9 months)
3) Risky disclosure of confidential information
4) Costly

Option C: Licensing Manufacturing and Marketing Rights
Advantage:
1) Cash generated immediately.
2) No Capital investments required.
3) Concentrate all resources on R&D

Disadvantage:
1) Much lower revenue if CRP1 is successful.

One of the big issues with Nucleon is that it is a small firm coming into an industry with several larger, well established firms. In this case, it was highly important for the company to focus on their core competency and quickly gain a solid reputation within the market through developing their competitive advantage, instead of attempting to build their own facilities or focusing energy on activities outside their core competency, among other things.

After Calculating all the options, we see that Piloting for Phase I&II, then Piloting for Phase III is the best option, given its risks, that will yield the

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