For the purposes of analyzing the Amgen case (and answering the quiz questions) please consider these potential scenarios of market competition.

	Scenario A	Scenario B	Scenario C
	Lower Competition	Higher Competition	Highest Competition
Number of competing biosimilars	2	5	8
Biosimilar share per product	50%	20%	12.5%
Biosimilar market penetration	40%	60%	70%
Price level relative to the pre-biosimilar price	70%	50%	40%

Question 1

Amgen should decide to enter the biosimilar market?

Group of answer choices

Strongly Agree

Somewhat Agree

Somewhat Disagree

Strongly Disagree

Question 2

Under Scenario A, how much total biosimilar revenue ($ billions) are available for products that Amgen could target (given the market definition Amgen provides in the case)?

Question 3

Under Scenario C, how much total biosimilar revenue ($ billions) are available for products that Amgen could target (given the market definition Amgen provides in the case)?

Question 4

Under Scenario A, how much biosimilar revenue ($ billions) are available per product in products that Amgen could target (given the market definition Amgen provides in the case)?

Question 5

Under Scenario C, how much biosimilar revenue ($ billions) are available per product in products that Amgen could target (given the market definition Amgen provides in the case)?

Question 6

Assume that Amgen targets a product with annual revenue of $2 billion. Under Scenario A, what would be the expected operating margin for this product?

Question 7

Assume that Amgen targets a product with annual revenue of $2 billion. Under Scenario C, what would be the expected operating margin for this product?

Question 8

Assume that Amgen develops an innovative reference product with potential annual revenue of $2 billion. What would be the expected operating margin for this product?

Question 9

Consider a potential biologic target that has $1 billion in revenues, if you expect Scenario B to emerge would you enter this market?

Group of answer choices

Yes

No

Question 10

Which competitive scenario do you believe will emerge?

Group of answer choices

Scenario A

Scenario B

Scenario C

Question 11

What factors would you need to consider when predicting whether Scenario A, B or C will emerge?

Answer rating: 100% (QA)

1 Strongly Disagree The Amgen case does not provide enough information to make a decision about whether or not to enter the biosimilar market In parti... View the full answer