Genencor Returns To Its Roots

Executive Summary

Genencor is using many of the same technologies which helped it become a leading producer of industrial enzymes to build a health care business. But in running a profitable industrial operation along side an unprofitable, resource- consuming biopharmaceutical unit, the company faces the challenge of effectively managing two distinct business models under one roof, while maintaining investor confidence during a transitional period. Although the company's management acknowledges that they may eventually have to split its health care and industrial businesses, they are now seeking to take advantage of the scientific synergies between the two to create a diverse, yet focused portfolio of near- and longer-term opportunities. They are also attempting to use the protein engineering expertise previously applied in the industrial setting to reduce the risks and shorten the timelines typically associated with drug development by making improving others' inventions, for example, creating next-generation versions of late stage--or even marketed--therapeutic proteins.