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Date Submitted: 09/27/2011 10:04 AM

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3. What product options are available to Biodel? What resources would Biodel Need to pursue each option? What should Feldman do about the three options and why?

There are three product options Biodel could consider. The first one, under the cell biological division, would be to further develop synthetic serums that could replace natural fetal calf serums and horse serums. Biodel is already developing these serums. If Biodel decided to bring these into the market, it would have a first mover advantage and could potentially achieve up to 20 percent of the current market. In order to pursue this option Biodel would need to apply for patent protection. Also, a $1 to $2 million investment would be needed in manufacturing facilities. Additional management would have to be hired to oversee the project.

The second option, under the immunodiagnostics division, is to bring DEMA (a new testing technology based on enzyme membranes rather than radioactivity) to market. DEMA would be an alternative to tests based in radioactivity. DEMA tests would be safer, simpler, faster, and less expensive than radioactive tests. Several large drug companies are showing an interest in pursuing a joint venture or licensing agreement with Biodel. Also, Biodel would have to decide if it wants to target the clinical diagnostics market, or target drug stores.

The third option Biodel could consider is genetic engineering. Biodel is not currently working on any genetic engineering projects. It does, however supply products to genetic engineering laboratories. Dr. Daniel Ballantine, a friend of Feldman’s approached Biodel with a recommendation to enter the genetic engineering market. Ballantine was developing a new process in genetic engineering, using yeast as the host cell instead of E. coli. Ballantine wanted to gather his three colleagues to discuss a possible association with Biodel. The four scientists were all experts in yeast genetics. Biodel would have...