BIOCON

Submitted By
Anish Narula – B17007
Deepika Rawal – B17016
Pooja Patil – B17035
Prathamesh Kadam – B17037
Saee Diwan – B17045
Samir Goyal – B17046
 About BIOCON
1994 – ‘Syngene’ research company established
1978- 1997: Evolution Biocon
• 1st Indian company to
manufacture & export to the US
& Europe enzymes
• Expertise in various
fermentation process
• Market opportunity in enzyme
industry low
• Maximum potential for Biocon
~ $100 - $150 million
2000 – ‘Clinigene’ clinical trials company established
1996: Entered
biopharmaceuticals with
Statins
• Global biopharmaceuticals
industry by 2016 ~$80 billion
• Challenges: Technology &
market development
• 1994 – ‘Syngene’ research
company established
• Lovastatin, Simvastatin &
Pravastatin – Patent set to
expire
• 1st Indian company to get US
FDA approval
• 15%-20% statin share in the
US 7 Europe
2002:Development of
2000- Insulin Market
proprietary drugs(BIOMAb)
• Reasons: Large global market, • Reason: Price pressure
Diabetics to grow to 79 million on generic product
by 2030 & capability to • BIOMab – a proprietary
ferment 100000 litres drug for head and neck
cancer
• Required high clinical trials
• 2004 -10% share in insulin
market
• First time marketing
experience
 About BIOMAb
In 2002…
CIMAB
• Research on BIOMab with promising phase 1
results
• Has the patent New Additional Brand Diversification

Joint venture Brand

BIOCON – Challenges:
• New technology Existing Line Extension Brand Extension
• No knowledge of mammalian cells
• Manufacture of product
• Plant investments
• Less experience in marketing oncology drugs
Existing New
• Regulatory approvals
• Clinical trials required
• Less knowledge about the patients, physicians Product Category
Problem Analysis
Launch decision evaluation
• Evaluation of trade off between waiting for 3rd trial or
launching after 2nd trial
• No prior experience in manufacturing drugs for
mammalian cells and hence low credibility of product
• Time and money spent in conducting 3rd trial would
give first mover’s advantage to Erbitrux
Comparison with Competitor:
• 100% response in patients using Biomed
with radio and chemotherapy
• Indian origin tag
• No skin rash
Sales Channel development
• No experience in selling oncology drugs
• Need to setup new channels to connect to
oncologists
• Anticipated shipping volumes were very low
• Decision of Indirect versus Direct selling
• Erbitrux was introduced in India for
colorectal cancer
• 3 years of market usage experience
• Strong evidence from clinical trials of
efficacy for head and neck cancer
 Alternatives- SWOT

Immediate Launch Generic product followed by Simultaneous Launch

BIOMAb
Strength No Competition Phase 3 results Revenue base
Weakness Limited Sales Capability -- Dilute Biocon’s Image
First Movers Advantage Strengthened Sales Capability Make a compelling pitch to
Opportunity
oncologists
Non Availability of phase 3 Competition from Erbitrux Competition from Erbitrux
Threat
results
Recommendations
Product Price
• Proprietary drug for head and neck cancer • Difficult to set price considering competitors, profitability and
• Developed as JV with CIMAB quality perception.
• Completed phase-2 trials successfully • Can be set at the international level of $4000-$5000 per dose.
• Shows 100% success in combination with radiotherapy and • Customers would want it at a substantial discount to the
chemotherapy. global firms prices. (approximately $1000).

Place Promotion
• Directly to doctors using clearing and forwarding agents. • Traditional detailing (communicating benefits to oncologists)
(cost-effective) • Also, help, support and information to patients and families
• Traditional channel option through website, consumer help lines , sales force and direct
• Biocon – CFA- wholesaler-retail/hospital pharmacy-doctor to consumer advertising.
(leveraging on relationship between doctors and
pharmacies)
GE Model - Market Attractiveness vs Company Strength
Market Attractiveness

Analyze Invest Invest

Divest Hold Invest

Divest Milk Milk

SBU Strength
Conclusion

Biocon should not launch BIOMab and strengthen Biocon should launch generic products
their R&D and Sales capabilities followed by BIOMab after phase-3 trials

Time to strengthen their sales capability, while Ebitrux entry will facilitate the process of
they can asses the market impact of generic drugs educating the doctors and patients with this
and use the knowledge in launching BIOMab. new method of treatment.
THANK YOU