Case
Teaching Notes
Supplementary Resources
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.
2023 Sage Publications, Inc. All Rights Reserved
Resources
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
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.
2023 Sage Publications, Inc. All Rights Reserved
