This case looks into the policy-making, product-testing and the business plan implementation procedures at the Targanta Therapeutics, which is a biotech organization that is in the process of creating its novel drug application for the FDA. The company, which has held a fruitful IPO in 2007, is run by president and CEO Mark Leuchtenberger. Mark is concerned about approximately the ten month period has been submitted, for review. The case looks into how Targanta came into being and at the "de-risking" of oritavancin, which is an antibiotic treatment for drug-resilient contagions. ORitavancin was first formulated at Eli Lilly and was then sold to InterMune before Targanta purchased it somewhere in late 2005.
Employing two business model generation canvases compare and contrast the original revenue generation business model developed by Eli Lilly & Co. with Targanta’s approach to its revised business model
From an investor’s perspective, discuss why Intermune paid $50 million + royalty commitments and why Targanta was able to buy oritavancin for only $ 1 million?
Did Targanta successfully de-risk the drug? What is the meaning/significance of de-risking a drug?