Nucleon, Inc.

Case Solution

Gary P. Pisano
Harvard Business School ()

Nucleon is a small biotech company whose first potential product is close to clinical testing. However, before Nucleon can begin clinical trials, management must decide how and where to manufacture the product. Three options are being considered: 1) build our own pilot plant, 2) outsource manufacturing, 3) license development, manufacturing and marketing rights to a corporate partner. It enables discussion of a number of manufacturing strategy issues that are relevant to R&D-intensive entrepreneurship. A central issue is the strategic value of own production for a company that primarily competes with highly distinctive and specialized R&D capabilities. .

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