Torrey Nano Case (400 words)

Please submit a case write-up for either Torrey Nano or GE.

Reminder: 400-word limit. 

For Torrey Nano

Assume that Torrey Nano’s drug candidate is successful in Phase I and II- its first product to make it to human trials, let alone manufacturing. It now needs to manufacture a large amount of the drug for Phase III testing.

Question: Should they vertically integrate into manufacturing?

• Apply concepts from both the transaction cost view and the capabilities view to support your argument (and if the views don’t both support your recommendation, why you chose the direction you did).
• Use evidence from the case in both views.