I. IssuesNucleon is a small biotech startup with a very promising potential product (CRP-1), which is also the first product Nucleon plans to launch into the clinical market. Nucleon has reached the human clinical trial phase with its product and does not have a manufacturing facility that meets the guidelines for such clinical trials and testing. Nucleon is on the verge of making a critical choice in manufacturing strategy, which will affect its survival in intense competition in the long term. Nucleon's management recognizes that it has a limited budget to begin with, that the financial environment for biotechnology is changing rapidly, and that establishing the safety and effectiveness of products like CRP-1 is complex, long and expensive; therefore, they want to evaluate the risks and benefits of each manufacturing strategy before making their final decision.II. AlternativesBefore moving to the clinical testing phase, Nucleon management evaluates the pros and cons of the company's 3 primary manufacturing strategies. For Phases I and II, these options are 1) construction of a new 5,000 m² pilot plant supplying the CRP-1 needed for Phases I and II, 2) outsourcing clinical manufacturing to an outside company and 3) granting a manufacturing license to another biotechnology or pharmaceutical company. farm. If CRP-1 is successful in the first two phases, there are two other options available to the company for Phase III, namely 1) vertical integration with commercial marketing and 2) licensing of manufacturing and marketing.III. ProblemsThe main problem for Nucleon is the current availability of capital. They only have $6.5M available when evaluating these options. Nucleon doesn't have the option to go to the pub...... middle of paper...... it's no use. Nucleon's core competencies include carrying out appropriate scientific research with its team of experts and their close links with academia leading to technical prowess; therefore, they should focus on maintaining their scientific expertise. If they choose not to license the product at an early stage and CRP-1 is successful in Phases I and II, I recommend that Nucleon invest in a factory to supply the market on their own. they can find external support from investors. With the strong Phase I and II test results, I believe Nucleon can build investor confidence and secure the initial investment. The expected return on this investment is very high compared to licensing the product at this stage. However, if they do not find external support, they can still license the product in Phase III and benefit from the immediate cash flow followed by royalty payment..