-----CASE STUDY

Tengion is a young biotech company that is at the frontier of regenerative medicine; a nascent field that seeks to promote the creation of new cells and tissue to repair or replace tissue or organ function lost due to age, disease, damage, or congenital defects. Tengion is taking on some of the most challenging aspects of personalized medicine and tissue engineering. They have built a strong management team, including a seasoned manufacturing operations executive that will help them navigate both scales up and scale out as they progress through clinical development. They also have a pipeline of products at various stages of development to keep their R&D busy as the bladder project enters late-stage development. Importantly, Tengion has excellent funding and a resource in JNJ, who should help guide them in the process of building a business from their discontinuous technological innovations. If successful, Tengion will certainly change the way that medicine will be practiced. The Ernst & Young rewarded Dr. Steve Nichtberger (CEO) as the Entrepreneur of the year for this leadership and vision. In late 2008 Tengion management faces a difficult financial crisis. In light of the financial crises, the company needs to manage cash burn by prioritizing its R&D efforts. CEO Nichtberger needs to recommend to the board which of two promising new medical treatments to keep developing while placing the other on hold. In comparing the two options, a host of factors need to be considered-- these range from assessing the regulatory challenges, manufacturing challenges, marketing challenges (in particular pricing), and partnering challenges. Each of the treatments would target a unique patient population, which differ in both size and composition. Tengion must also consider how quickly it might expect to bring each of the two treatments to market. The decision could have significant long-term

implications for the company's ultimate survival and success since his dream is to run a venture funded Biotechnology Company developing noval treatment to replace what he considered to be antique medicine.