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  • September 2021 (Revised October 2022)
  • Supplement
  • HBS Case Collection

Hester Pharmaceuticals (B): Securing Supply

By: Dante Roscini and John Masko
  • Format:Print
  • | Language:English
  • | Pages:12
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Abstract

Supplements the (A) case. In late 2020, demand for Hester Pharmaceutical’s (Hester’s) breakthrough oncology drug Akrozumab was outstripping the company’s most optimistic projections. In order to increase manufacturing capacity and meet the demand, Hester was considering three options: enlarging its active ingredient manufacturing facility in Germany, building a new one in Boston, or hiring a contract manufacturing organization (CMO) in China to produce the drug. Expanding the facility in Germany was the least expensive option in the short-term. Building in the U.S. would create capacity for the future while ingratiating the company with U.S. policymakers. Taking a “buy, don’t build” approach in China would allow Hester the most flexibility. With the global environment for drug manufacturing shifting rapidly, and only six to seven years of market leadership before a competing drug was due to launch, how should Hester proceed?

Keywords

COVID-19 Pandemic; Cost vs Benefits; Trade; Supply Chain; Global Strategy; Buildings and Facilities; Operations; Health Care and Treatment; Demand and Consumers; Global Range; Globalized Markets and Industries; Pharmaceutical Industry; Italy; China; United States; Germany

Citation

Roscini, Dante, and John Masko. "Hester Pharmaceuticals (B): Securing Supply." Harvard Business School Supplement 722-009, September 2021. (Revised October 2022.)
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About The Author

Dante Roscini

Business, Government and the International Economy
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Related Work

    • September 2021 (Revised October 2022)
    • Faculty Research

    Hester Pharmaceuticals (B): Securing Supply

    By: Dante Roscini and John Masko
Related Work
  • Hester Pharmaceuticals (B): Securing Supply By: Dante Roscini and John Masko
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