MARKET ENVIRONMENT • The global biopharmaceutical industry is expected to exceed $165 billion in 2015. • The market continues to grow due to biopharmaceutical capacity to outperform traditional small molecule drugs. reports IMARC. from $90 billion presently. • The biopharmaceutical market has benefited from the need for pharmaceutical manufacturers to boost output. .

• The expected investment of Rs. • The deal with Pfizer for insulin will help biocon double its revenues in 5 years.150-Rs.180 cr in R & D by BIOCON is expected to drive the growth and improve margins. . global presence through acquisitions. • Lastly. • The market for insulin is expected grow in coming years due to growing number of diabetics patients. joint ventures and strategic alliances will help the company to increase its turnover with its quality products.

recombinant proteins. peptides and monoclonal antibodies.Technological Environment • Technology in this industry do affect the revenue and growth significantly. • The breadth and scale of Biocon’s manufacturing technologies has helped biocon in transiting from a niche player in specialty enzymes to a global provider of biopharmaceuticals spanning small molecules. .

. • Most of the companies including Biocon has started externalizing R&D in order to increase number of R&D programs and to expedite time to market.• The important thing here is time to market which also affects the success of a newly launched product.

• Per capita GDP is expected to grow by 8.Economic Environment • Indian Economy is expected to grow by 7.6% in 2012-13 from present 6.9%. • It is also interesting to know that our economy is third largest in terms of purchasing power. • There also exist continuous efforts by finance ministry and RBI to derive growth by lowering borrowing rate which will help to lower the cost of debt. .1% in 21012-13.

• There is also Drugs and Cosmetics Act 1940 and Rules 1945 for conducting clinical trails.Regulatory Environment • There exists Central Drugs Standard Control Organization which central regulating body for this industry. • Stringent norms for Patents. • 100% FDI in Bio-tech and pharma will help in expansion of production facilities . Marketing of the product and clinical trials helps the Indian companies to compete globally.

Political Environment • Politics has no great role to play in this industry. .

Socio-cultural Environment • Growing awareness among patients regarding the product. number of patients will also increase but with greater knowledge base • More people have started using bio pharma products which are very successful in curing a particular disease . its licensing and quality approval • With the increase in population.

Indian pharma products are said to be price competitive because of the reducing price controls from the government.International Environment • Biocon is India's first biotechnology company to export microbial enzymes to USA and Europe. . • Biocon is ranked among the top 20 global biotechnology companies (Med Ad News). • Globally. • Biocon has received commercial approval from 23 countries to market and sell its products. 2008.

one of the products.• The STATINS. • Partnership. • There are foreign players who give tough competition to biocon in terms of installed capacities and greater financial strength. alone. has 20% global market share and gives 30% revenue to biocon. . joint venture and strategic alliance overseas will be very helpful to compete globally.

Expected huge demand of the Socio-cultural . protecting the domestic companies Technological Economical Regulatory Political Politics had no great role in the industry Wide consumer base with proper knowledge. global presence Use of state of the art technology approved by the overseas as well Promising future of the economy which is expected to be industry friendly Strong regulations.Environment Nature of Impact Impact of each factor Market Good growth potential.

Critical Success Factors • This are the factors which are very crucial in the success of the business. • This factors needs to be understood carefully before deciding upon the strategies and policies .

CSF Probability of Impact HIGH HIGH Market. International Economic. Sociocultural - LOW - MEDIUM - - LOW - Political . Regulatory Impact on business MEDIUM Technology.

IN-105. Thus. . which is expected to come in near future. increasing access to healthcare and improving regulatory environment.Opportunities • To do a series of licensing deals overseas for the sale of the product INSULIN which is expected to be the revenue leader of the Biocon. • The global pharmaceutical industry is now focusing on serving the emerging markets which have strong growth prospects fuelled by their rising GDPs. • One of its products. it will be globally competitive. has the potential to eventually replace injectable insulin in future.

• Price controls.S. • Tough competition from Chinese. • The major dependence on some customers will affect the revenue if those customers are lost.Threats • The changes in regulation may affect the company. . may affect the competitive advantage in terms of lower cost. U. And European companies who have huge installed capacities and greater financial strength. ajor dependence on Bristol Myers Squibb (BMS) – a large customer for recombinant human insulin and custom research from Syngene. if any. For eg.

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