MEMORANDUM: Product Synergy - Krynoxi’s  Introdisem

What is Introdisem?

Introdisem is Krynoxi’s new medical equipment invention, designed to help the administration and targeting of drugs that would usually be injected or ingested. Although the precise manner in which the equipment works has not been publicly disclosed (and, we can report, is patent protected), the equipment allows physicians to administer drugs in specific locations in the body such that the administered drug only affects those chosen areas.This is reported to lower side-effects of drugs that are usually administered ‘non-specifically’, or, as Krynoxi put it ‘as has been done by millennia - without Introdisem’.

Why does Panacead need Introdisem?

As you know, our newest product, Permorbus, has done fantastically well. Glioblastoma is an aggressive brain cancer that, prior to our launch of Permorbus, was nearly impossible to combat. I am glad to informally report that Permorbus has seemingly outperformed our Stage III trial results, extending patients’ lives by approximately four years (where our Stage III results suggested only three and a half). Needless to say, Permorbus is in great demand all around the world. 

However, as we know, Permorbus can have some strong side-effects. Whilst Permorbus’ efficacy has superseded our expectations, so too has the potency of its side-effects; many customers are reporting that their patients occasionally suffer such extreme unintended effects that they decide that they would rather cease treatment than to continue with Permorbus. For the meantime, this has not caused too many issues; however, we fear that should the news of these side-effects and the resultant discontinuation of treatment spread then Permorbus, notwithstanding its efficacy, may be boycotted by consumers. Consequently, Introdisem seems like the perfect solution. 

Having had some brief talks with Krynoxi’s scientists, engineers and sales managers, we understand that Introdisem would allow Permorbus to be administered directly to the glioblastoma afflicted areas. Though side-effects that were generated in that area will not be entirely mitigated, the side-effects generated elsewhere would be drastically reduced. As we understand it, this is as a result of the targeting: if the drug is targeted, we are able to (1) administer a lower dose but maintain efficacy, and (2) limit side-effects which are generated by the drug affecting areas of the body that it was not meant to. 

The best parallel to explain this is standard chemotherapy medication: such medication targets all the body’s rapidly dividing cells, including, for example, hair cells, which causes the patient’s hair to fall out. As it stands, Permorbus has a similar side-effect; however, Introdisem is said to prevent such hair loss as the drug is targeted, leaving the hair cells untouched.

Hence, because Permorbus has a range of potential severe side-effects that are felt all over the body, our suggestion is that it always, wherever possible, be administered through the Introdisem equipment. This should attenuate the mounting upset over Permorbus’ side-effects and allow us to greatly boost our sales.

Concerns regarding Introdisem

However, the Introdisem equipment is quite expensive. Krynoxi has kept their cards close to their chest regarding price - they have told us that ‘the price will depend on the volume of product you wish to contract for’. We estimate that Krynoxi are selling their product, depending on the volume ordered, at anywhere between £25.00 - £75.00 per unit. Considering that we are projected to sell over 500 million doses of Permorbus alone next year, this would add a substantial cost in providing our product if we were to purchase Introdisem and supply it alongside Permorbus at our own expense to our customers.

Alternatively, we could leave it up to our customers to purchase Introdisem themselves. Whilst this certainly is an option, we think that this is a missed opportunity, and, if were it up to our customers, we could not guarantee that Introdisem will be used in conjunction with Permorbus, meaning that we continue to run the risk of negative press coverage.

Next steps

Having had some preliminary discussions, we are of the mind that Panacead should look to acquire Krynoxi, or, at the very least, acquire the rights and resources to manufacture Introdisem for ourselves. Although we could purchase the product from Krynoxi for each dose of Permorbus, this does not seem financially prudent in the long-run. 

We think that the synergy between our product lines and the benefits of owning Krynoxi and/or Introdisem far outweigh the cost of purchasing Krynoxi and/or their assets. Consequently, after some internal discussion, certain senior members of Panacead have reached out to our law firm, Young & Page, to have a discussion on how we might go about structuring such an acquisition.

Although our ideas and plans are in their infancy, we respectfully request that you do not print, forward or otherwise distribute this document. This information is strictly confidential, and we request, in line with your continued support for this company, that you exercise discretion regarding this topic.