Biocon India Case Study

BIOCON INDIA GROUPMarketing Management Case Study 1

Under the Guidance ofProf. R. Srinivasan

Presented by :Apoorvaa Anurag

DhirajManoj

CONTENTS1. Indian Pharmaceutical Industry2. Biocon India Group – Past, Present and the Future3. Case Study Overview4. The Burning Questions, circa 2000

INDIAN PHARMACEUTICAL INDUSTRY

Political

Economical

Demographic

Sociological

Physical

Technological

INDIAN PATENT REGIME & DPCO

• Drug Price Control Order (DPCO)• Indian Patent Act (1970)• Process based patenting• Prohibited patents for inventions related to food, medicine or

drug

• 1995 – 2005 • 2002 expanded to 20 year patent right

• The Patents (Amendment) Act 2005• Product and Process based patenting• Bans ever greening• Patent laws in conformity with TRIPS (trade related

intellectual property rights)• Exception to keep drug prices affordable

INDIAN PHARMACEUTICAL INDUSTRY

• Generic drugs form the largest segment• With 70% of market share

(in terms of revenues).• India supplies 20% of global

generic medicines market exports in terms of volume,

•  Skilled and Cost effective Labour

• Tax holidays & Tax deductions

• Research & Development, Clinical Trials,

Manufacturing – presence in full value chain

• Active Pharmaceutical Ingredients (API), nearly 85% come from China.

• FDI policy • allows 100% FDI under

automatic route in greenfield pharma.

• up to 100% (75% automatic & 25% govt. approval)FDI in brownfield pharma.

BIOCON GROUP

CULTURE AT BIOCON“Earn as you Learn”

Syngene (Chem & Bio

Res. )

Enzymes

Transparency

InnovationCollaborati

on

CASE STUDY OVERVIEW• Biocon looking at new avenues of expansion• animal studies and clinical trials segments ??

• Broad questions in growth strategy : • How to expand for growth• Extent of expansion

• Dilemma : to expand Clinigene or not?• Verticalization• Defocus core competencies• Long term effects of such strategy

BEST WAY TO EXPAND• Short term :• Passively-aggresively expand Clinigene with a 2-year window

of plans

• Long term :• Biocon should look beyond Clinigene in the long term for

expansion, and focus on innovation and build upon its core competencies

• Look out for Strategic Partners in developed countries to boost the revenues

• Partnering with incubators and research centers• Consciously try to build a brand

Thank You