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Global Blood Therapeutics, Inc.: What is the Best Funding Choice?

George Whaley, Akshay Gupta, Siddhesh Raorane
January 1, 2017
SKU:
BUS-004837
Region: 
North America
Topic: 
Strategy & General Management
Length: 
3 pages
Keywords: 
strategic management, business policy, entrepreneurship, product marketing, biotechnology management
Copyrighted by: 
Journal of Critical Incidents
Student Price: 
$4.00 (€3.76)
Average rating: 
0

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.

Learning Outcomes: 
  1. Identify the difference between internal and external factors and determine the effect these factors have on funding approaches for startup organizations attempting to meet stakeholder needs.
  2. Evaluate the needs of key stakeholders in startup firms prior to FDA product approval.
  3. Analyze and defend decision criteria for feasible funding approaches that allow startup biotechnology firms to sustain operations prior to the commercialization phase.