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Biocon Case Study

Biocon India was incorporated in 1978 as a joint venture between Biocon biochemical of Ireland and Dr. Mazumdar Shaw. From 1978 to 1997, Biocon primarily engaged in enzyme manufacturing and became the first Indian company to export enzymes to the US and Europe. In the mid-1990s, Biocon recognized limited potential in the enzyme market and decided to enter biopharmaceuticals, starting with generic statins in 1996-1997. Biocon further entered the insulin market in the early 2000s. Now, Biocon plans to develop BIOMAb, a drug for head and neck cancer, and must determine the optimal strategy for its launch.

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Vaibhavee Katial
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0% found this document useful (0 votes)
116 views12 pages

Biocon Case Study

Biocon India was incorporated in 1978 as a joint venture between Biocon biochemical of Ireland and Dr. Mazumdar Shaw. From 1978 to 1997, Biocon primarily engaged in enzyme manufacturing and became the first Indian company to export enzymes to the US and Europe. In the mid-1990s, Biocon recognized limited potential in the enzyme market and decided to enter biopharmaceuticals, starting with generic statins in 1996-1997. Biocon further entered the insulin market in the early 2000s. Now, Biocon plans to develop BIOMAb, a drug for head and neck cancer, and must determine the optimal strategy for its launch.

Uploaded by

Vaibhavee Katial
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BIOCON CASE

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

Launch of BIOMAb after Phase-III Results.


 Opportunity to strengthen sales capabilities before the launch of BIOMAb.
 Availability of phase three results will justify the launch of BIOMAb later.
 As Erbitux will enter first, it would facilitate the process of educating patients for this genre of
drugs.
 As it is a sensitive product, any failure in the product will cause huge legal and compensational
complications for the company.

Why not an immediate launch of BIOMAb after Phase-II results?


 Oncologists might be skeptical due to non availability of phase three results.
 Monetary, legal and social implications in case of unexpected behavior of the drug are
tremendous.
 Biocon has limited sales capabilities and zero experience in selling and marketing oncology
drugs.
Solution for Question-2

Optimal Marketing Mix, Product Portfolio,


Pricing, Sales channel and Marketing
communication
 Product
 Biocon should delay the launch for the 3rd phase results as it lends more credibility to
the product.
 Meanwhile, they should build their own sales capabilities by launching cancer generics
till phase 3 trials are completed.
 After completion, BIOMAb should be launched independently.
 Lower price of and better attributes would help gain market share and make up to some
extent for loss of first mover advantage.
 Price

 Biocon should launch product at $2500 per dose.


 Keeping in mind the Indian consumer, a price of $2500 would seem reasonable (lower
than that of its competitor Erbitux which is expected to launch the product at the price
$4000-$5000 ) and would also be safe enough so as not to project a low quality image
for the product.
 Place
 The product should be sold directly to doctors because drug sold through traditional
channels will increase the cost.
 Also considering market size is relatively small 24x7 services may not be required. As it
has to be refrigerated all the time and handled carefully, local pharmacy adds little
value.

 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

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