Case | HBS Case Collection | November 2005 (Revised November 2005)

Massachusetts General Hospital and the Enbrel Royalty

by David S. Scharfstein and Darren R. Smart


Massachusetts General Hospital is considering selling its royalty interest in Enbrel, Amgen's blockbuster drug for the treatment of rheumatoid arthritis. In assessing whether to sell, and at what price, the hospital must determine its value to a potential buyer as well as its own value of the royalty income.

Keywords: Valuation; Price; Investment Return; Capital; Value; Revenue; Health Care and Treatment; Health Industry; Biotechnology Industry; Massachusetts;


Scharfstein, David S., and Darren R. Smart. "Massachusetts General Hospital and the Enbrel Royalty." Harvard Business School Case 206-075, November 2005. (Revised November 2005.)