Decision on BioPasteur Future

1. BioPasteur was founded in 2002 by Jeff Thompson, Arnold Hand and Amy Waitz
2. Arnold and Jeff developed technology that allowed micro-organisms to be grown 200 times faster and 1% cost of the current technology
3. to specialize in the category of drugs that uses their developed technology and has patents protecting the technology till 2019
4. LOBLOPRIN was developed as blood pressure drug and profitable from 2006
5. LOBLOPRIN profits reached $50 million in 2011 with expected 10% growth till 2019
6. BioPasteur spent significant part of their profit from 2006 to 2011 on development of DIASTOP drug to cure type 1 and type 2 diabetes
7. FDA approved DIASTOP in 2010 but need further test and development to guarantee negligible side effects
8. BioPastuer’s to be donated to MIT in 2019

Objective

• Impact of DIASTOP introduction on BioPasteur

Criterial

1. Cost
2. Risk Tolerance
3. Profitability
4. Ethical/Moral Issue
5. Company image

Alternatives

1. To release DIASTOP to the market now
2. Delay release of DIASTOP till 2015 to undergo further test and lab development

1. To release DIASTOP to the market now

• Earn profit of $70mmilion annually for BioPasteur from 2011
• Avoid $12million cost annually for further development
• Risk of non-negligent side effect may lead to FDA recall the product
• The company image and future of the BioPasteur will be jeopardize
•  The ethical issue of DIASTOP failure will have negative effect on the company image
•  The sales volume of LOBLOPRIN will drop if DIASTOP recall
• The cost of R&D  and product development will be lost
• Likelihood of an effect of age on complication long-term negative consequence

•  Delay release of DIASTOP till 2015 to undergo further test and lab development

• Assurance of patient- friendly products
• Eliminate risk of recall by FDA
• Company image and LOBLOPRIN sales not jeopardize
• The expected profit growth in LOBROPLIN sales achieve
• $12 million cost annually for further development
• Further delay of the introduction till 2017 or abandonment
• Loss of $15 million initial payment and two years guarantee to CFT

Decision

To delay release of DIASTOP till 2015 to undergo further test and lab development

Recommendation

The donation of BioPasture to MIT should be delayed till 2022 to enable the owners recoup their investment in DIASTOP and make more profit on both DIASTOP and LOBLOPRIN