Biocon Case Study
Biocon Case Study
STUDY
Group-5
F19008 Anand Chunkapura
F19010 Aneesha Anna Reny
F19019 Ashik Joseph
F19020 Boney Varghese
F19041 Mathew Thejo Philip
F19042 Michael Thomas
F19048 Nilina Davis
■ Biocon India was incorporated in 1978 as a JV between Biocon biochemical of Ireland and Dr.
Mazumdar Shaw, an Indian entrepreneur
■ In 1989 Unilever acquired Biocon chemicals in Ireland and held an equity share in Biocon India.
■ From 1978 to 1997 Biocon primarily engaged only in Enzyme manufacturing and also became
the first Indian company to export enzymes to the US and Europe for the food processing
industry.
Market diversification by Biocon:
■ In mid 1990’s Biocon recognized that the market potential for enzymes were only USD
100-150 million globally and profit potential was limited.
■ Biocon decided to enter the biopharmaceutical market in 1996-1997 as a manufacturer
of generic drugs starting with Statin. (Treatment of bad cholesterol)
■ Coincidently Unilever sells its share of Biocon in 2001 making bicon free from the
resistance to enter the biopharmaceutical market
■ Biocon further entered the Insulin market in early 2000’s.
■ Market Attractiveness:
■ Large Global market
■ 32 million diabetics and estimated to grow upto 79 million by 2030 in India.
■ Major competitors: Nova and Eli Lilly
■ Insulin required clinical trails unlike Statin, Biocon formed the subsidiary Clinigene in 2000 to
pursue clinical trails of drugs in India.
■ The drug was priced 20-30% less than its competitor Novo.
■ BY 2004 Biocon had gained just above 10% market share in the Indian Insulin market.
Market Potential of BIOMAb
■ Biocon then planned to develop BIOMAb, a proprietary drug for head and neck cancer.
■ Cancer affects all, young and old, rich and poor, children and women.
■ According to WHO cancer was one of the leading causes of death in the world
Integrated Business Model of Biocon
Questions
1. Whether to launch BIOMAb immediately after approval ( based on
Phase – 2 trials ) or wait for Phase -3 trials ? Explain rationale &
implications
2. What would be the optimal marketing mix to use during launch –
product portfolio, pricing of BIOMAb, sales channel and marketing
communication ?
Solution for Question-1
Promotion
Biocon should highlight the fact that BIOMAb had shown 100% response in patients
when used in combination with radio and chemotherapy.
They should use the fact that it does not produce skin rashes to their advantage. Biocon
should also leverage BIOMAb’s Indian origin.
THANKYOU