George Whaley, Akshay Gupta, Siddhesh Raorane
Journal of Critical Incidents
January 01, 2017
Global Blood Therapeutics, Inc. (GBT) was a small, privately held biotechnology firm that decided to focus on their new drug candidate, GBT440, to treat the rare sickle cell disease that had no known cure. The CEO raised venture capital (VC) funds in the past, and current clinical trial data for GBT440 were encouraging. However, additional external funds were needed by the end of 2015 to replace depleted cash and enable company expansion to support GBT440 development for future FDA approval. The CEO pondered over four traditional funding sources: going public (IPO), seeking additional VC funds, finding angel investors, or seeking a strategic partnership to sustain GBT and satisfy its key stakeholders. Students are asked to use pertinent strategic management and decision-making tools and methods to address the needs of key stakeholders, and to ultimately select the best funding source for GBT.