In 1990, Roche, a Swiss pharmaceutical company, initially invested $2.1 billion to purchase a controlling interest in the biotech startup Genentech. In 2009, after witnessing the success of Genentech's drug discovery and development projects, Roche spent $47 billion to purchase the remaining minority interest in Genentech, making it a wholly owned subsidiary. In terms of strategic alliances, this scenario best indicates

Question

Ray Mora

Business

29 June, 08:44

In 1990, Roche, a Swiss pharmaceutical company, initially invested $2.1 billion to purchase a controlling interest in the biotech startup Genentech. In 2009, after witnessing the success of Genentech's drug discovery and development projects, Roche spent $47 billion to purchase the remaining minority interest in Genentech, making it a wholly owned subsidiary. In terms of strategic alliances, this scenario best indicates

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Furball · Answer 1

The real options perspective.

Explanation:

Real options perspective makes use of logic in financial decisions involving capital investments. Where and when to make capital investments are made based on logical deductions.

In this instance Roche adopted a wait and see strategy. It invested $2.1 billion to purchase a controlling interest in the biotech startup Genentech. After it saw good performance from them Roche now spent $47 billion to purchase the remaining minority interest in Genentech, making it a wholly owned subsidiary.