Executive Summary
Biogen is a global biotechnology company headquartered in Cambridge, Massachusetts. Biogen is engaged in the research and development of biopharmaceuticals for human health care. Its main product is Avonex, a drug for the treatment of Multiple Sclerosis. Eighty-two percent of its revenues in 2000 came from the sale of this sole product. Biogen is also involved in the research of drugs for psoriasis, Crohn's disease, congestive heart failure, and cancer. Biogen believes that its success is based on its employees, and its corporate culture reflects this belief. Its culture is embedded in its corporate values. These values consist of hiring the highest quality employees, flexibility in work, leadership, and teamwork.
Biogen is in a strong position within the biotechnology industry. It is one of just seventeen profitable biotech companies and has the fourth largest market capitalization. Biogen has attained this prestige by utilizing partnerships from the beginning of the company which has definitely paid off. By partnering with some of the larger pharmaceutical companies, Biogen has created many competitive advantages. The main competitive advantages have been access to capital and drug marketing. Lack of capital (running out of cash) is what bankrupts most young biotechnology firms.
Although Biogen has many advantages, it also has some definite weaknesses. Over 82% of its 2000 revenues came from Avonex, their cash cow. By relying on Avonex, Biogen has been able to stay profitable, but in the future this will not work. Biogen's main threat comes from Serono, a Switzerland based company. Serono has a drug in their pipeline that has the potential of wiping out half of Biogen's U.S. revenues. To continue into the future ...