Business-Level Strategies
The firm Abeona Therapeutics Inc. serves as a clinical-stage biopharmaceutical corporation that undertakes numerous operations to ensure the development of novel therapies that could cure or manage life-threatening genetic illnesses that are usually rare. In this industry, it is essential that the organization maintain high level of coordination and collaboration between patient groups, researchers, regulators and the industry itself (Davis, 2015). Through this practice, the company has noted that there are nearly 7,000 rare diseases affecting approximately 25 and 30 million Americans and Europeans respectively. In this regard, Abeona Therapeutics Inc. incorporates various business-level strategies that ensure competitive advantage over its rivals in the industry. Some of the most notable practices include differentiation on the creation of the therapies for rare illnesses. It is evident that nearly 95% of rare conditions that affect 25 million Americans do not have an approved drug treatment by the FDA (Davis, 2015). In this regard, the organization works tirelessly to ensure that the development of appropriate therapies for the ailing individuals.
Abeona Therapeutics Inc. has indicated numerous rare diseases that serve as the primary focus for the business. These diseases include the Sanfilippo Syndrome, Epidermolysis Bullosa (EB), Juvenile Batten disease (JBD), and Fanconi anemia (FA). These rare illnesses are the primary focus of the organization’s operations (Davis, 2015). The company incorporates its highly qualified and competent human resources as the integral factor towards the development of gene therapy and plasma-based products to its customer base. Through proper coordination practices, the biopharmaceutical company collaborates with numerous foundations and patient advocacy groups that help in development of the treatment options (Davis, 2015). These non-profit organizations help identify the needs of this rare population in terms of treatment planning. Through access to ailing patients, the foundations usually found all over the US provide an appropriate source of information for the researchers of the company. Abeona’s engagement with these foundations is an effective measure towards incorporating cost leadership by gathering financial investment for use in research of the various problems.
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The most appropriate business-level strategy that the firm can incorporate is the differentiation strategies. Through significant research, it is evident that the development of rare conditions in America and the world over is a market niche that requires immediate attention. Nearly 7,000 rare illnesses are affecting the global population. Therefore, it is evident that the implementation of developing novel therapies is an appropriate measure for continued success of the company (Davis, 2015). Gene therapies have shown through significant research that their development could play a major role towards developing cures for various diseases. Abeona has received approval to progress in testing of ABO-101 and ABO-102 for the treatment of Sanfilippo syndrome type A and B is the start of the company’s success for finding cures. Continued focus on gene therapies as an effective treatment option for Lysosomal storage diseases (LSD) among other rare conditions will help in the organization’s future prosperity.
Corporate-Level Strategies
Corporate-level strategies encompass significant decisions made by the organization that affect all aspects of the same. In this case, Abeona Therapeutics could incorporate significant strategic decisions that affect the entirety of the organization in is continued practice of developing novel treatments for rare diseases (Davis, 2015). The modern world has experienced a wide array of pharmaceutical and biotechnology product manufacturing corporations. However, very few have focused on the biopharmaceutical approach of developing treatments that could help alleviate rare conditions affecting up to 350 million people worldwide. As a result, focus on Lysosomal storage disorders offers the company a rare opportunity to make a difference in the American, European and global population (Davis, 2015). LSD includes up to 50 rare disorders that affect different body parts including brain, skin, central nervous system, skeleton, and heart. Through gene therapies and plasma-based therapeutics, serve as effective techniques for increasing chances of cure for these diseases.
The organization identifies the importance of directional strategy through growth and expansion of its portfolio. Abeona Therapeutics previously recognized as PlasmaTech Biopharmaceuticals changed its name in 2015 as a means of identifying the company’s commitment to a broader rare diseases (Davis, 2015). The title “Abeona” is a reflection on the organization’s practices as it refers to the ancient Roman goddess believed to be the protector of children as they take their first steps. In the same way, the firm looks towards improving the lives of children in America and across the world by developing treatments that will ensure the creation of unique gene and plasma-based therapies. The LSD conditions provide an array of rare illnesses that the organization can incorporate their capital and highly qualified professionals as it continues to achieve growth and widespread recognition in America (Davis, 2015). The company has since provided plasma-based therapies for ensuring treatment of rare, genetic and chronic diseases.
The primary corporate level strategy that the corporation uses to achieve continued success is its uncompromising stance on employment of top-level executives. In this case, Abeona Therapeutics Inc. is identified for its continued involvement of qualified individuals whose experience and previous successes are integral to the company’s future. The firm recently announced the appointment of Juan Ruiz as the Chief Medical Officer (Martins, VanZeller, Barroso, & Carreira, 2015). The individual has had a decorated career in developing gene therapy medicines. He also has a proven record of accomplishment of coping with leadership responsibilities and demonstrates the qualities that the organization requires to achieve its mission (Davis, 2015). Through a broader list of rare conditions, such leaders are integral towards development of treatment options for children. In a world that is turning to chemical dependency for treatment of diseases and various conditions, focus on gene therapies and plasma-based therapeutics could be the most effective measure of finding cures. The presence of qualified and competent leaders in the organization ensures focus on the medical problems and ability to inspire subordinates towards the intended objectives.
Competitive Environment
The organization is among a number of pharmaceutical and biotechnology product manufacturing corporations that have endeavored towards development of innovative treatments and therapies for rare, chronic and genetic conditions. Some of the most significant competitors in the industry include Voyager Therapeutics Inc. and AMAG Pharmaceuticals Inc. The former is a clinical-stage corporation dedicated to the development and innovation of gene therapies for patients that suffer from severe central nervous system (CNS) conditions (Davis, 2015). In this case, the organization poses a primary threat to the delivery of the services offered by Abeona as some of its target patients fall into this group. Nevertheless, Abeona Therapeutics takes a larger market capitalization of $307.95 million to $235.41 million for Voyager. On the other hand, AMAG Pharmaceuticals is a general pharmaceutical company dedicated towards the manufacture, development and commercialization of a varied array of treatment options (Martins, VanZeller, Barroso, & Carreira, 2015). The company focuses on maternal health, cancer supportive care, and anemia management.
Abeona Therapeutics has taken up the name change as an indicator of its commitment to a broader base of rare conditions. This decision has had significant impact on the organization as it increases the focus areas of operations. However, it is important to note that the firm has not wavered on its intention to provide high quality products and therapies that will serve its customer base. The competitors like Voyager and AMAG have a more centralized business-level strategy that reduces the target consumer for the products and services offered (Andrews et al., 2017). For instance, Voyager’s focus on CNS related conditions helps in developing numerous mental disorders such as Parkinson’s disease, Alzheimer’s, amyotrophic lateral sclerosis (ALS), Friedreich's ataxia and Huntington’s disease. Through this approach, the organization provides significant competition to Abeona in the development of treatment options for the rare conditions (Andrews et al., 2017). The latter’s intent to develop next generation adeno-associated virus (AAV) also used by Voyager could help in realizing future success of the business.
The development of corporate level strategies is an important factor towards increasing the company’s competitive advantage over its competitors. While Abeona therapeutics focuses on increased growth strategy of the company through concentric diversification. The primary reason for the firm’s name change from PlasmaTech to Abeona is to identify its increased commitment in developing treatments for rare condition (Andrews et al., 2017). In this practice, it develops gene and plasma-based therapies that can help in the treatment of the numerous LSD conditions (Davis, 2015). The AMAG Inc. however incorporates a diversification growth strategy. In this case, the firm approves numerous decisions to acquire other companies. AMAG pharmaceuticals conducted significant acquisitions of Lumara Health and Cord Blood Registry in 2014 and 2015 respectively. Through these practices, the company can expand its ability to develop and diversify the products and services offered to treat the rare conditions. These mergers have been integral to development of patented medications such as Ferumoxytol that generate tens of millions of dollars in revenue (Martins, VanZeller, Barroso, & Carreira, 2015). This corporate-level strategy is more effective to ensure continued long-term success of the company in the industry as opposed to the approach used by Abeona.
Slow-Cycle and Fast-Cycle Markets
The nature of an industry is a critical factor to consider when making choices for the development of business-level and corporate-level strategies. The slow-cycle markets identify a shielded market where the organizations and the products offered are usually protected from significant competition for an extended period. In the above case, the only measure for ensuring involvement in the market is through development of strategic alliances like mergers and acquisitions (Martins, VanZeller, Barroso, & Carreira, 2015). This practice is common in pharmaceutical and biotechnology product manufacturing. The fast-cycle market on the other hand represents a competitive environment where there are numerous cases of unpredictability, hyper-competition, uncertainty, complexity, and instability. In this practice, the organization’s measures of ensuring competitive advantage do not experience high level of protection from imitation (Martins, VanZeller, Barroso, & Carreira, 2015). As a result, the company is constantly changing its competitive tactics while creating value for existing efforts.
The Abeona therapeutics is involved in a slow-cycle market where its competitive advantage over its competitors experience high level of protection from imitation. In this regard, rival corporations protect the treatment options they offer from imitation. Through patenting of innovative plasma-based therapeutics and gene therapies, Abeona can achieve business-level success over its close rival Voyager (Andrews et al., 2017). The two companies serve in a similar area of treatment options for the target market. However, the distinct medical conditions that serve as the primary resource for the firms are different. In light of this, the Abeona firm would not experience significant competition hence there would be no change in the long-term success of the company (Davis, 2015).
The fast-cycle market is distinctively different from that which AMAGA pharmaceuticals and Abeona therapeutics operate. In such a market, the organizations experience significant uncertainty in the protection of their practices for competitive edge at the corporate-level strategies (Martins, VanZeller, Barroso, & Carreira, 2015). AMAGA implemented the use of acquisitions and merges as a measure of ensuring continued growth of the company through diversifying its products and services. However, in a fast-cycle market Abeona would be able to incorporate a similar practice by developing products that are similar to the latter and serve as alternatives that consumers can buy (Martins, VanZeller, Barroso, & Carreira, 2015). In the corporate-level strategy, organizations would be required to incorporate high innovation to realize competitive advantage and continued growth of the company.
References
Andrews, M. et al. (2017) Cell & Gene Therapy World: Meet The Future Of Cell & Gene Therapy . Immunotherapy World, Retrieved from http://www.bioleaders-forum.com/__media/PDFs/Cell--26-Gene-Therapy-World-main-announcement.pdf
Davis, J. B. (2015, June 2) PLASMA-DERIVED BIOLOGICS - New Fractionation Process to Expand Availability of Plasma-Derived Treatments . Drug Development & Delivery, Retrieved from http://www.drug-dev.com/Main/Back-Issues/PLASMADERIVED-BIOLOGICS-New-Fractionation-Process-940.aspx
Martins, I., VanZeller, N., Barroso, R., & Carreira, S. (2015, June). Lady Concept, Competitive Rivalry And Competitive Dynamics. In IMC 2015 International Management Conference 26th June 2015 (p. 340).
