Presentation Type

Oral Presentation

Keywords

Biotechnology industry, Amgen, Biotechnology treatment, central nervous system diseases

Department

Business Administration

Major

International Business

Abstract

The Biotechnology Industry is a relatively young industry that saw revenues of $400B in 2012. While the industry is beginning to reach maturity and has seen decelerating growth rates in recent years, the industry is certainly not in decline. Despite slowing down, the industry growth rates have remained relatively stable over the last ten years with 13% growth in 2003 and only decreasing to 9% in 2012. The Biotechnology Industry works in conjunction with the trillion dollar Pharmaceutical Industry to develop drugs to supplement human needs. Instead of focusing on chemical processes, Biotechnology utilizes living organisms and modifies their molecular and cellular structures to develop new products. The industry develops products in the areas of crop production and agriculture, industrial, and environmental. However, more than half of its products are designed for the human health technologies sector, which focuses on products to strengthen the human body against disease

Amgen is currently a leader in the Biotechnology Industry with a 4.32% market share and $17.27 B in Revenues in 2012. Despite being a leader, Amgen faces patent expirations on four out of its five top selling drugs in 2015. This means that Amgen needs to implement a new strategy in order to maintain its position as an industry leader; the Central Nervous System (CNS) Market Segment offers an opportunity to do just that. The CNS Market is one of the fastest growing segments in the industry with a growth rate of approximately 5% making this segment an attractive area to invest large amounts of R&D. The CNS Market deals primarily with diseases affecting a person’s brain, spinal cord, and neurons. Growth in this segment, much like the other market segments, relies heavily on the development and advancement of new technologies.

A recent study at UCLA found a way to detect hyperphosphorylated tau proteins that cause Chronic Traumatic Encephalopathy (CTE), a disease resulting from multiple concussions that causes neurological degeneration targeted at the memory and the learning functions of the brain. With this new technology to detect CTE pre-mortem, there is an opportunity for Amgen to develop a treatment aimed at the treating this disease caused by repeated concussions. Approximately, 3.8 MM concussions are reported every year and an estimated 50% of concussions go unreported every year with most being sustained by athletes and military personnel. With an increased awareness of repeated Traumatic Brain Injuries in recent years paired with the new technology to detect CTE, Amgen has the opportunity to be the first develop a treatment aimed at this innovative area of CNS and capture a market that has high profit potential.

Faculty Mentor

V. Seshan

Funding Source or Research Program

Academic Year Undergraduate Research Initiative

Presentation Session

Session B

Location

Plaza Classroom 189

Start Date

21-3-2014 5:00 PM

Included in

Business Commons

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Mar 21st, 5:00 PM

Innovative Biotechnology Approach to Treating Central Nervous System Diseases

Plaza Classroom 189

The Biotechnology Industry is a relatively young industry that saw revenues of $400B in 2012. While the industry is beginning to reach maturity and has seen decelerating growth rates in recent years, the industry is certainly not in decline. Despite slowing down, the industry growth rates have remained relatively stable over the last ten years with 13% growth in 2003 and only decreasing to 9% in 2012. The Biotechnology Industry works in conjunction with the trillion dollar Pharmaceutical Industry to develop drugs to supplement human needs. Instead of focusing on chemical processes, Biotechnology utilizes living organisms and modifies their molecular and cellular structures to develop new products. The industry develops products in the areas of crop production and agriculture, industrial, and environmental. However, more than half of its products are designed for the human health technologies sector, which focuses on products to strengthen the human body against disease

Amgen is currently a leader in the Biotechnology Industry with a 4.32% market share and $17.27 B in Revenues in 2012. Despite being a leader, Amgen faces patent expirations on four out of its five top selling drugs in 2015. This means that Amgen needs to implement a new strategy in order to maintain its position as an industry leader; the Central Nervous System (CNS) Market Segment offers an opportunity to do just that. The CNS Market is one of the fastest growing segments in the industry with a growth rate of approximately 5% making this segment an attractive area to invest large amounts of R&D. The CNS Market deals primarily with diseases affecting a person’s brain, spinal cord, and neurons. Growth in this segment, much like the other market segments, relies heavily on the development and advancement of new technologies.

A recent study at UCLA found a way to detect hyperphosphorylated tau proteins that cause Chronic Traumatic Encephalopathy (CTE), a disease resulting from multiple concussions that causes neurological degeneration targeted at the memory and the learning functions of the brain. With this new technology to detect CTE pre-mortem, there is an opportunity for Amgen to develop a treatment aimed at the treating this disease caused by repeated concussions. Approximately, 3.8 MM concussions are reported every year and an estimated 50% of concussions go unreported every year with most being sustained by athletes and military personnel. With an increased awareness of repeated Traumatic Brain Injuries in recent years paired with the new technology to detect CTE, Amgen has the opportunity to be the first develop a treatment aimed at this innovative area of CNS and capture a market that has high profit potential.