XYZ Biotech: A Fictional Business Development Case Utilizing Quantitative Tools to Evaluate a New Antibody-Drug-Conjugate Opportunity for Metastatic Breast Cancer

Authors

  • John M. York Rutgers, the State University of New Jersey, University of California, San Diego
  • Jennifer Rodriguez Rutgers, the State University of New Jersey
  • Kayla Sepe Rutgers, the State University of New Jersey
  • Shivan Patel Rutgers, the State University of New Jersey

DOI:

https://doi.org/10.33423/ajm.v23i5.6667

Keywords:

management, bottom-up analysis, Compounded Annual Growth Rate (CAGR), discount rate, Free cash flow (FCF), market sizing, market model, Net Present Value (NPV), pricing model

Abstract

Multiple considerations must be evaluated with a new acquisition or license in biopharmaceutical business development. This case utilizes a fictional company, XYZ Biotech, to illustrate the quantitative considerations in evaluating an antibody-drug combination product in the metastatic breast cancer (mBC) space. The steps shown in this case also include the development of a market model to define the potential size of the market opportunity, a weighted benefit pricing model to evaluate the present price, and a net present value model to estimate projections from the product. The case also engages multiple qualitative considerations as part of the discussion section. It concludes by offering several nuanced questions at the end to stimulate discussion around the analysis, probe additional considerations needed for a business case, and analyze what other elements or issues would drive a decision. In the appendix is a short case summary of key facts for participants to develop solutions and share in class before reviewing the case narrative.

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Published

2023-12-28

How to Cite

York, J. M., Rodriguez, J., Sepe, K., & Patel, S. (2023). XYZ Biotech: A Fictional Business Development Case Utilizing Quantitative Tools to Evaluate a New Antibody-Drug-Conjugate Opportunity for Metastatic Breast Cancer. American Journal of Management, 23(5). https://doi.org/10.33423/ajm.v23i5.6667

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Section

Articles