Genzyme Pharmaceutical Company - Case Study Example

Orphan drugs refer to those drugs which can potentially cure rare diseases or disorders. This stood in sharp contrast to the strategy followed by other players in the drug industry whose foremost aim is to earn as much revenues as possible through the production of drugs needed the most in general so as to capture bigger markets and ensure sustainable monetary gains for the companies.

While Genzyme’s focus on orphan drugs can be questioned, on the face of it, this decision was a pragmatic one as is also substantiated by the tangible success of the company. Owing to its production of drugs for rare diseases it was easier for the company to target its markets, although essentially smaller than those for the widely-needed drugs, more systematically and sustainably. Moreover, its focus on orphan drugs also made it possible for the company to accrue full benefits of tax breaks and market exclusivity contained in the Orphan Drug Act introduced by the FDA in 1983 thus multiplying the chances of Genzyme’s domination of the already-limited orphan drugs’ market.

As far as the strategic intent of Genzyme is concerned the company it’s a long term one as is being depicted by the company’s diversification of the drugs it produces. In addition to its focus on orphan drugs, it is also producing common drugs so as to secure its share of the bigger markets too which can ensure accruing continued profit by the company and hence further cement its position in the pharmaceutical industry.

Answer to Question#5

Although Genzyme is actively pursuing diversification of its market through the production of common drugs too the company should retain its focus on orphan drugs as the incidence of rare diseases such as certain kidney disorders and forms of cancer, whose cure is offered by the orphan drugs, is continually on the rise.

Moreover, as the company’s exemplary success testifies to the latent practicality of its decision of focusing on orphan drugs it should take steps towards further specialized areas of medicine and medical technology so as to sustain its distinct position in the industry rather than plunging into the arena of common medicine characterized by fierce competition.