Operations & Supply Chain Management - MM 5002

Biocon Research - Preparing for Bio-Pharmaceutical Transition

Syndicate 3
Dwi Sulistyaningsih (29322461) | Erik Pascanugraha Hendarsin (29322449)
Firliani Sarah (29322432) | Hanas Nurpijar Kaloka (29322465)
Hanny Kusumawardhany Lukito (29322453) 1
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[Syndicate 3 - SMEMBA 7]

Case :

Biocon Research
Preparing for Bio-Pharmaceutical Transition

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1 Biocon Research Company Overview

Agenda 2 BRL Current Structure vs Proposed Structure

3 Challenges for Restructuring

4 Restructuring impact
 Unlike similar organizations in India, Biocon focus to biopharmaceuticals and
4 biosimilars. In other words, breakthroughs medicines.

TYPE OF MEDICINES

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Biocon Focus
Patent Generic
Biopharmaceuticals Biosimilars
pharmaceuticals pharmaceuticals

A drugs differ from

A small-molecule drug Contain identical A protein-based drug
reference product due to
Definition covered under patent medicinal ingredients to covered under patent
materials from living
protection their reference products protection
things
Biocon Research Reference
- Patent pharmaceuticals - Biopharmaceuticals
Company product

Overview Manufacturing Simple chemical manufacturing Complex active ingredients / formulation

Less costly than

Price Expensive Cheap Expensive reference product, but still
expensive

Panadol Paracetamol Neupogen Zarzio

Example
(to relieve pain) (to relieve pain) (medicine for cancer) (medicine for cancer)

India Pharmaceuticals industry is big on generic products due to lax regulations for patented product. However,
Biocon want to differ from other companies due to:
1. Complex drugs may cure high-risk diseases, i.e. cancer, diabetes
2. They already have experience working with biology-based industry
3. Smaller competition
4. Higher profit
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“Building Biocon as a global biopharmaceutical powerhouse committed to

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delivering affordable best-in-class therapeutics to the patient across the
globe.”

Notable step stone

Biocon Research 1978 2000 2005 2010

Company -
1999
-
2004
-
2009
-
2015

Overview
A company focus to First Indian Company Focus on global
Transform into Biopharma
produce enzyme used for develop and commercialize development and strategic
Company
food and fermentation biopharmaceuticals. alliance

Able to mass produce generic Proprietary fermentation technology Launched BIOMAb EGFR, anti cancer
products like statins and received USFDA approval drug Launched a novel anti-CD6 antibody
immunosuppressants for psoriasis - ALZUMAb

Divest enzyme business

Create BRC, Biocon Research Center,
functional centralized research
Collab with external parties facility
6 BIOCON RESEARCH Ltd, R&D Team

Objective: deliver products with higher probability of success (product with better

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efficacy and safety at lower cycle time and cost)
Project types in BRL
● Two types of project: developing biopharmaceuticals and biosimilar medicine
● Each project have different scope, thus need a different skill set to handle

Biocon Research Biopharmaceuticals Project Biosimilar Project

Company Scope
A protein-based drug covered under patent A protein-based drug with similar effect with
protection the reference product
Overview
Planning Create a protein-based novel drugs Modify a protein-based drugs

Time 10 - 15 years 4 - 5 years

Very expensive, but can have bigger impact Expensive, can get revenue quicker than
Cost
and revenue biopharmaceuticals
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BIOCON RESEARCH Ltd, R&D Team

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Current BRL Structure : Functional Structure
● Several individual units/ core functional units
● Individual scientist from a lab was involved in multiple projects
● Project management team responsible for formal cross-functional meeting &
overall collaboration of other functional team
● Responsible for both projects novel biopharmaceutical & biosimilar portfolio
BRL R&D
Current Structure
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BIOCON RESEARCH Ltd, R&D Team

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Current BRL Structure : Functional Structure

Pros
▸ BRL can develop deep expertise
in each core functional area &
BRL R&D each functional unit became
Current Structure center of excellence in their
domain
▸ Quickly communicate and make
quick decision
▸ Allowed diffusion of domain
knowledge within the team
members of functional group
▸ Lower cost
Cons
▸ Decision process are not clear
within the organization
▸ Resources simultaneously
utilized for developing both
projects novel biologics &
biosimilar projects
▸ No demarcation of personnel
working in any particular SBU
▸ Process driven project choices
▸ Inefficient control as the team
growing
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BIOCON RESEARCH Ltd, R&D Team

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Proposed BRL Structure : Project-Oriented Structure
● A way to manage project distribution, resource allocation, planning and
control effectively.
● Functional team distributed to 5 project groups, each PG led by PMO.
● PMO as critical link for corporate and R&D, selecting the right project
portfolio, responsible on the administrative task of the project.
BRL R&D
Proposed
Structure
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BIOCON RESEARCH Ltd, R&D Team
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Proposed BRL Structure : Project-Oriented Structure
Current
▸ One R&D pool talent
▸ One leader for each laboratory
BRL R&D ▸ Resources used for both
Proposed biosimilar and biopharmaceutical
▸ Resources knowledge shared
Structure unquantified, by experience only
unwell documented
▸ No evaluation mechanism for
prioritize/ elimination
▸ Overwork scientist doing multiple
projects
▸ Internal needs driven
▸ Inefficient activity as scientist
have multiple projects
Proposed
▸ Divided into several Projects
Group
▸ Lead by Project Group
▸ Resources used based on project
requirements
▸ Resources knowledge divided
based on project experiences &
standardized
▸ Evaluated by Project
Management Office (PMO)
▸ Scientist assigned based on
project needs & controlled
▸ Driven by both external & internal
needs
▸ Focus on one projects
 The need of strong project group manager to lead the team and bridging
11 different work style between each group member will be the biggest challenge
when restructuring R&D division.

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BIOCON R&D TEAM

Before restructuring After restructuring Challenges Possible solution

No appointed person in Appointed person in change Challenges in working as

Challenges for change for decision making for decision making leader and structure
Engage all employees to be
Restructuring Leader assigned based on Leader assigned based on Possible pushback from
able to work together better

function project group group member to its leader

Each function have different Mandate process and Combine all function work
flow language across projects flow into one Brainstorm session and
knowledge sharing session
Easier knowledge sharing Learnings are coming from A new communication with all project groups
for each function different function barrier

Well-defined communication
Cross-functional Create sprint meeting
within their own area May cause longer lead time
communication periodically
(similar expertise)

Resource allocation may Use resource allocation

Resource allocation based Need a more advanced
differ based on stage of method, create critical path
on function resource allocation
project for each project
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3 Phase approach to launch the new era of Biocon R&D

Phase 1 Phase 2 Phase 3

New Way of Enable 2018 Visualize the New Era Install New Operating
Working at of R&D Model
Establish joint R&D and Engage cross functional Create multi year plan to
Biocon Research business unit project team leader and expert to execute the strategy
Center to have common craft well-aligned, clear (identify & establish new
understanding on critical view of long-term vision capabilities/process/syste
short term business needs & strategy to establish m, develop talent and
for biosimilars and insulin. BRC as global innovator mantain reputation)
powerhouse.

Short-term Long-term
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BIOCON RESEARCH (2-3 YEARS)
In 2-3 years Biocon Group managed to expand its products globally to EU and USA through

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partnerships with Mylan and Sandoz. Biocon established Biocon Biologics to focus in
advancing the research & development and commercialization of biologic drugs.

Investment partnership

Global partnership ●Partnership with True North and Tata Capital

Growth Funds provides financial support to

New Way of ●Biocon-Sandoz enter global partnership

for next-gen biosimilar
Biocon Biologics to expands its biosimilars
business globally

Working Impact ●Two biosimilars (develop by Biocon and

Mylan) got marketing authorization in EU
●Biocon products gets DCGI Nod for restricted
emergency use in Covid-19 patients

Short Term ●Biocon Biologics receives USD 150 Mio capital

injection from Goldman Sachs

2018
2020

After Mylan partnership

2019

●Biosimilars business consolidated under

independent entity Biocon Biologics
●Market expansion in US through Ogivri,
biosimilars (co-dev Mylan)
●Bicara Therapeutics incorporated to advance
novel immuno-oncology assets

Established Biocon Biologics

14 BIOCON RESEARCH (LONG TERM 5-10 YEARS)

Technological Advancements

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Global Expansion
Biocon has been actively create opportunities for Biocon to
expanding its global presence develop innovative therapies,
through partnerships, expand its product portfolio, and
collaborations, and become an industry leader through
acquisitions. research and development
investment.

New Way of
Working Impact
Long Term 2021
2026 2031

5 Years 2022 Changing Disease Landscape. 10 Years

Biocon needs to align its focus and research efforts with

emerging disease areas and patient needs to remain
relevant and effectively address unmet medical needs.
Let’s discuss!

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