Enbrel: The Sting of Success

Enbrel: The Sting of Success: "

Immunex, a small Seattle biotechnology company, stumbles into a hugely successful and groundbreaking product. Enbrel, a tumor necrosis factor, is immediately recognized as the most effective treatment for rheumatoid arthritis--a $300 billion market in the United States. After almost 20 years of unprofitability, Enbrel is a lifesaver for Immunex. But it could also become the company's worst nightmare. Immunex, after years of being cash starved, has not been able to build production capabilities to satisfy the sudden and massive demand for its drug.

Learning Objective: To illustrate the decision-making process concerning how and when to build commercialization capabilities in a small biotechnology company. Also, to explore options for reacting to an unexpected demand in a hypercompetitive market.

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