Genzyme: The Renvela Launch Decision

Abstract

Pharmaceutical company Genzyme has created a new drug, Renvela, which is a phosphate binder designed to be used primarily by patients with kidney failure. Renvela is a slightly different version of Genzyme's highly successful Renagel. Company executives must now decide how best to launch Renvela. Should it replace Renagel? Should it be a premium version of Renagel? Is it worth launching the product at all? The case appears rather simple on the surface, but the questions are challenging to work through.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Exhibit 1: Genzyme Financial Highlights ($ in millions)

2006

2005

2004

Revenues

3,187

2,735

2,201

Gross margin

2,434

2,082

1,600

SG&A

1,010

788

599

R&D

650

503

392

Operating profit

(191)

601

253

Net earnings

(17)

441

87

Exhibit 2: Genzyme's Largest Products ($ in millions)

2006

2005

Cerezyme

1,007

932

Renagel

515

417

Fabrazyme

359

305

Synvisc

234

219

Thymoglobulin/lymphoglobuline

150

128

Sepra products

85

62

Myozyme

59

4

Exhibit 3: Stages of Chronic Kidney Disease

Stage

Description

eGFR Level

Normal kidney function

Healthy kidneys

90 ml/min or more

Stage 1

Kidney damage with normal or high GFR

90 ml/min or more

Stage 2

Kidney damage and mild decrease in GFR

60 to 89 ml/min

Stage 3

Moderate decrease in GFR

30 to 59 ml/min

Stage 4

Severe decrease in GFR

15 to 29 ml/min

Stage 5

Kidney failure

Less than 15 ml/min or on dialysis

Exhibit 4: U.S. Patients with CKD

Adults (in thousands)

CKD Stage

Description

375

Stage 5

Kidney failure/dialysis

400

Stage 4

Severe

7,500

Stage 3

Moderate

11,800

Stages 1 and 2

Mild

Exhibit 5: Renagel Advertising

Figure

Figure

Exhibit 6: Global Sales of Renagel

Sales ($ in millions)

Change

2001

177.0

+316.1%

2002

156.9

−11.4%

2003

281.7

+79.5%

2004

363.7

+29%

2005

417.5

+14.8%

2006

515.1

+23.4%

Exhibit 7: TRx Market Shares for Renagel, PhosLo, and Fosrenol (%)

2004

2005

2006

Renagel

50

49

50

PhosLo

50

45

42

Fosrenol

6

8

Source: IMS Health.

Exhibit 8: Side Effects of Renagel vs. Renvela

Renagel

Renvela

Nausea

10%

7%

Vomiting

8%

6%

Diarrhea

5%

2%

Reflux

4%

1%

Source: J. Delmez et al., “A Randomized, Double-Blind, Crossover Design Study of Sevelamer Hydrochloride and Sevelamer Carbonate in Patients on Hemodialysis,” Clinical Nephrology 68, no. 6 (2007): 386–391.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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