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Business Studies

Should they vertically integrate into manufacturing?

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.