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Nucleon Inc.

GROUP MEMBERS
ABHISHEK SANDHU - (PGP/21/003)
HARSH AGARWAL- (PGP/21/021)
JAYENDU BHASKAR - (PGP/21/023)
KUMAR ABHISHEK - (PGP/21/ 028)

RAGHVENDRA PRATAP - (PGP/21/036)

D scientist o Cost of going up to commercial manufacturing is way too high .in house manufacturing capability o Keep control over process and quality procedures o Scaling up would be easier o Sole supplier of CRP-I to it’s manufacturing partner • Threats- o Pilot facility is not going to be used for phase 3 o The high risk of failure might force the plant to be kept idle o There is high level off process uncertainty o Lacked supervisors and technicians as most of the employees were Ph. OPTION -1(PILOT PLANT (I& II) + COMMERCIAL MANUFACTURING(III)) • Opportunities- o Enable the firm to develop the nucleus of a future large-scale .

which is pretty less .in house manufacturing capability o Keep control over process and quality procedures o Scaling up would be easier o Cost of integrating into commercial manufacturing will be saved( $20 million) • Threats- o Pilot facility is not going to be used for phase 3 o The high risk of failure might force the plant to be kept idle o There is high level off process uncertainty o Lacked supervisors and technicians as most of the employees were PhD scientist o Royalty amounts to only 10% of the partners gross sale & $ 7 million after phase I approval. OPTION -II(PILOT PLANT (I& II) + LEASING OUT MANUFACTURING AND MARKETING RIGHTS(III)) • Opportunities- o Enable the firm to develop the nucleus of a future large-scale .

o Economies of scale comes into the picture for companies applying for contracts o Sole supplier of CRP-I to it’s manufacturing partner for commercial • Threats- o Confidentiality information disclosure will be at risk o Estimates for cost and time was very painstaking because of various complexities. OPTION -III(CONTRACT (I& II) + COMMERCIAL(III)) • Opportunities- o No major capital investment on Nucleon’s part o Companies supplying contract manufacturing had facilities and personnel in place. o Very tough to integrate into commercial manufacturing after contract manufacturing in phase I & II .

o Royalty amounts to only 10% of the partners gross sale & $ 7 million after phase I approval . OPTION –IV (CONTRACT (I& II) + LICENSING(III)) • Opportunities- o No major capital investment on Nucleon’s part o Companies supplying contract manufacturing had facilities and personnel in place. o Economies of scale comes into the picture for companies applying for contracts • Threats- o Confidentiality information disclosure will be at risk o Estimates for cost and time was very painstaking because of various complexities.

o Company can concentrate on it’s core competency(research & development) o Can retain the right to develop CRP-I for therapeutic applications o Royalties as percentage of sales • Threats- o Employees viewed it as “mortgaging the companies future” o Estimates for cost and time was very painstaking because of various complexities. o Royalties amount received if product is successful will be far lower than had it manufactured by itself . OPTION –IV (LICENSING(I& II) + LICENSING(III)) • Opportunities- o No major capital investment on Nucleon’s part o Had the chief benefit of generating cash immediately.

40 NPV $4.000.00 $- 1 2 3 4 5 NPV $4.07 $3.960.72 $4.023.00 $7.48 $5.000.00 $2.40 Options .07 $5.960.00 $6.31 $3.000.48 $7. FINANCIAL ANALYSIS FOR NPV NPV $8.158.000.000.023.00 $1.00 $3.00 $3.766.095.766.158.72 $3.00 $5.000.000.31 $7.095.000.

all other opportunities and threats are detailed in the slides earlier.RECOMMENDATIONS • Robert Moore should go for contract manufacturing in phase I & phase II and then go for commercial manufacturing in phase III. • The NPV is highest for the given option . .