BIO375H5 Lecture Notes - Lecture 5: Nasdaq Biotechnology Index, Celera Corporation, Incyte
Document Summary
Look at how groups of companies have performed over time: commodity, can biotechnology products be a commodity, what is a commodity, something purchased because it"s cheap as a consumer, buy what we do because cheaper than alternatives. Me too products sharing basic theme of competition: defining feature: purchased because it is cheapest option, easy to imitate (or procure, customers price sensitive, profits sensitive to cost of goods (labour & resources) Luxury cars not commodity: commodities in biotechnology, biotechnology professionals often have trouble accepting that their technology might be a commodity, seduced by science, confuse complexity with differentiation, dna databases / sequencing, celera genomics. Incyte genomics (now changed to incyte corporation: differentiated product, something that is not a commodity, opposite of cheap alternative expensive alternative. Just because a product is a commodity, does not mean it is not attractive product to invest in or seek employment.
