Purinex Inc. Case Study - Situational Analysis
--The company has no sales or earnings
--Income from Federal Research Grant
--Cash in hand- $700,000
--Expenses - $60,000/month
--Cash level would enable the company to survive for another 11 months only.
--Company needs money to invest in Research and Development (R&D) for the development of drugs
--If the firm is capitalized ,there are better chances of securing a partnership
--Benefits of Partnership deal: R & D funding, Production Facilities, Co-promotion rights
--Drawback of Partnership deal: Giving up marketing rights under agreement
--Two appropriate partnership deals are: Antagonist program for diabetes treatment, Agonist program for sepsis treatment
--How could the firm survive until the partnership happens?
--Which deal is better for Purinex?
“Sepsis deal or Diabetes deal ”