Team:Alberta-North-RBI E/ExitStrategy
From 2012e.igem.org
Contents |
Exit Strateies
First of all, the exit strategy is applicable for several special cases, in which we should cause great change in production
1. Severe entry barrier
2. We cannot get approval from the pharmaceutical industry, and our company is no longer profitable
3. The price has dropped to a low enough level during a long enough time that we cannot sustain the production any more
First method: product shift
We can produce another product which can be made utilizing the same operating line ( e.g bio butanol and some other biofuel. ( it is applicable for all the situation))
Second method : finding more profitable markets
Since there are many undeveloped areas in the world where people cannot afford the Tamiflu from Roche ( the company controls the market), we can sell our product at a much lower price since shikimic acid is quite profitable. This method is applicable especially when entry barrier meets or companies cannot sell the product but get the FDA approval
Third method: merger & acquisition
We can sell our company if the price drops down to an unacceptable level during a long enough time that we cannot sustain our production any more