Proteolix: A “Me-Too” Success

Abstract

In an industry rife with failures, Proteolix, a biotechnology company, was a rare success. The Proteolix case provides a compelling example of a biotech company that has chosen a “me-too” strategy, a less risky strategy than the strategy of discovering a drug for a novel target. However, even me-too drug strategies in the biotech industry face an uphill battle. The protagonist, Susan Molineaux, along with her team, faced many challenges along the way and the case study provides students with a map of some of her key decisions at important points in the company’s history. The case study asks students to evaluate Molineaux’s and her team’s decisions and to identify the company’s drivers of success. The Proteolix case also allows students to understand the biotechnology industry, its unique challenges, and the particular challenges facing a me-too drug company that is attempting to dislodge a drug to treat life-threatening indications.

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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Resources

Exhibit 1: Proteolix Timeline

2002: Craig Crews and Raymond Deshaies seek funding for Proteolix

Nov. 2003: Proteolix founded

April 2003: Susan Molineaux joins Proteolix

May 2003: Velcade approved for multiple myeloma by FDA

Dec. 2003: Proteolix receives first round of funding of $18.3 million

June 2004: Carfilzomib is discovered

June 2005: IND filed for carfilzomib

Aug. 2005: Phase I clinical trials

Dec. 2005: Susan Molineaux becomes CEO of Proteolix

March 2006: First patient response to carfilzomib

May 2006: Proteolix receives second round of funding of $45 million

Aug. 2007: Phase II clinical trials

Oct. 2009: Onyx acquires Proteolix

Source: Case writer analysis.

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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