REALIZING VALUE FROM MULTIPLE TECHNOLOGY PLATFORMS: OXIGENE, INC.
Mark J. Ahn, David Ackerley & Rebecca Bednarek, Victoria University of WellingtonAnne York, Creighton University

Case Objective
This case is set in the biopharmaceutical industry, which is fundamentally about creating innovative medicines and exploiting the finite period of intellectual property exclusivity. Key industry pressures include the rate of patent expirations on current product portfolios, a decline in research & development productivity, generic substitution, and decreasing effective exclusivity periods. This case illustrates the promise and perils of managing an early, development stage biotechnology company that seeks to advance novel technologies, obtain financing, and alliances with larger multinational biopharmaceutical companies.

Case Synopsis
Oxigene is a development stage, biopharmaceutical company developing novel therapeutics to treat cancer and eye diseases. This case follows Dr. Richard Chin, CEO of Oxigene, as he faces the key strategic challenge of positioning the firm's technology platform and products, while seeking additional investment capital and external alliances. At issue was that Oxigene developed a technology platform with multiple product applications, each of which required significant resources. "Wall Street," however, solely valued the company on its lead oncology product, Zybrestat, and seemingly did not impute any value to its other ophthalmology pipeline candidates. The case frames Chin and Oxigene's strategic options — continue to diversify from oncology to ophthalmology, spin off their ophthalmology product candidates into a new company, or license their ophthalmology another company (e.g., small biotech, large multinational biopharmaceutical).

The authors developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor's manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, New England Center, October 29-31, 2009. All rights are reserved to the authors and NACRA. © 2009. Contact person: Mark J. Ahn, Faculties of Commerce & Administration and Science, Victoria University of Wellington, 23 Lambton Quay, Wellington, New Zealand 6140, (64) (4) 463-6934, mark@pukanapartners.com.

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