1. How has the Biocon’s positioning and strategy evolved over the years? What role does BIOMAb play in Biocon’s overall strategy? How big is the current and future market opportunity for BIOMAb •Biocon India was incorporated in November 1978 a sa joint venture between Biocon Biochemicals of Ireland and Dr. Mazumdar, an Indian entrepreneur. In 1979, Biocon first started manufacturing enzymes for food processing industries and exported to the United States and Europe. In 1994 Biocon stablished a Syngene International, a subsidiary custom research company to address the growing need for outsourced R&D in the pharmaceutical sector But the maximum potential for Biocon was only $100 to $150 million even if they achieve a possible 10% to 15 % possible market share. The profit potential looked limited. So, they decided to enter into the Bio pharmaceutical market which had a much bigger potential market which was nearly 5 times ($10 billion) as compared to specialty enzyme market. at that time and likely to become $40 billion in near future and more than $80 billion by the year 2016. •They entered the pharmaceutical market in 1996-1997 as a manufacturer of generic drugs led Biocon to Statins.
Biocon also started manufacturing Simvastatin and pravastatin gaining 15-20% share of the statin market in the United States and Europe. After a huge success with small molecules (statins) in a remarkable short duration of time, they decided to move into large molecules. •They entered into the Insulin market which was governed by three factors. First, Insulin represented a large global market domain. Second, one fifth of the global diabetic population (32 million in 2000) resides in India and was expected to grow to 70 million by 2030.
Third, no biotech company had been able to make inroads in this market because their fermentation capabilities were limited to 1000 liters, whereas cost considerations dictated the capability to ferment 100,000 litres or more at a time. Initially they aimed at domestic market and priced the product 20-30% lesser than Novo, the competitor. They increased their sales force from 150 to 250 in just two years to market its insulin. •After the success of insulin, they entered into the proprietary drugs.