BIOCON: Launching A New Cancer Drug in India

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Brief overview:
Biocon India was incorporated in November 1978 It was primarily an enzyme manufacturing company, and developed expertise in various fermentation processes In 1996 BIOCON decided to enter the pharmaceutical field:

The profit margin in the enzyme market was low. On the contrary the global biopharmaceutical company was a booming industry which was growing very rapidly.

However

there were two challenges:

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Technological challenge

 In

1996 BIOCON entered the biopharmaceutical market with the manufacture of the first generic drug: STATINS Statins kept the bad cholesterol under control Within 2-3yrs they developed a unique process to manufacture statins They entered the US market Made big profits Now since they succeeded with small molecules they decided to move to larger molecules 9/16/12

Why insulin??
Insulin India

had a large global market

accounted for 1/5th of the worlds global diabetic population in the fermentation processes gave them en edge over their competitors

Expertise

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 BIOCON

trials:

now needed to perform clinical

Therefore it formed the subsidiary clinigine in 2000 to perform the tests.

Next

BIOCON decided to move on to the production of proprietary drugs

Oral insulin

BIOCON

formed a joint venture with CIMAB

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BIOMAb
Drug

for head and neck cancer Market size of BIOMAb is 1900 in India It stimulated the patients immune system to attack malignant tumor cells by blocking specific cell receptors

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 CIMAB

had performed the phase 1 tests and got the results for head and neck cancer patients were many advantages of moving into this new market:

There

Learn about the new mammalian tech. Chance to develop a new market First Indian company to launch a proprietary drug

The

disadvantages however were:

Lack of knowledge about the new tech New to dealing with mammalian cells Financial investment No experience in marketing oncology drugs.
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When should we launch BIOMAb???

Launch a group of cancer generics first and BIOMAb later Build sales capability in oncology sector before the launch ofBIOMAb In the meantime initiate phase 3 testing BIOMAb has the following advantages Phase two results had shown a 100% success Did not cause side effect unlike its competitor Requires only 6 dosages whereas erbitux treatment period is indefinite Competitive price with better features would help gain market share and make up to some extent for loss of first mover advantage
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Pricing
Initial

investment- $25,000,000 Market size- 1900 patients per year and this number is expected to rise. Suggested price-$3000 per dose and each patient needs 6 doses. Assuming that we have a 25 % market share initially we will take under 3 years to break even

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Channel

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Reason for our choice of channel:

The The The

dealers will have tie ups with doctors dealers will have the storage facilities

doctors will have added knowledge of the product and therefore will be in a better position to recommend it to the patient

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Marketing Communication
Knowledge

sharing seminars for the oncologists. Tie ups have to be made with cancer institutes. Adequate use of website and consumer help lines for the patients The drug can be given to government hospitals at low prices as a CSR initiative.

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