Submitted By:Aparna Vyas

Barun Kumar
Jayshree Bharti
Manoj Dubey
Rajesh Kumar
Saurabh Mehta
Manoj Dubey
Veeresh Tripathi

GLOBAL BIOTECHNOLOGY
INDUSTRY
Discovery of Recombinant DNA technology in 1973.
Application in Agriculture, Industry, Medicine
It is estimated that by 2025, BIO-DRUGS would
replace 70% of conventional Therapies.
The global biotech industry was $84.6 billion in 2010
and is expected to grow at a 7% CAGR to $103 billion
by 2013.

Top 10 Global Biotech Corporations, 2010

In terms of Revenue
Ranking

Corporation

Roche

Amgen Inc

Gilead Sciences Inc

Biogen Idec Inc.

UCB SA

Genzyme Corp

CSL Ltd.

Celgene Corp

Cephalon Inc.

10

Actelion Ltd
Source : www.pharmalive.com

INDIAN BIOTECHNOLOGY INDUSTRY

Indian biotechnology industry revenues touched
Rs 15,000 crores in 2010-2011.
The industry has grown consistently in double
digits over the last decade with average revenue
growth figures greater than 20%.
It is estimated to reach a turnover of around Rs
45,000 crores by 2015

Source - The Biospectrum-ABLE industry survey 2011

9th BioSpectrum-ABLE listing of Top 20 BioTech Companies 2010-11

Rank

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Company
Biocon
Serum Institute of India
Panacea Biotec
Nuziveedu Seeds
Reliance Life Sciences*
Quintiles India*
NovoNordisk
Rasi Seeds
Mahyco*
Transasia
Ankur Seeds
Syngene International
Bharat Biotech *
Indian Immunologicals
Krishidhan Seeds
Shantha Biotech*
Novozymes South Asia *
Bharat Serums
Jubilant Life Sciences

Revenue

Change over
2009-10 (%)

2010-11

2011 (%)

1483
1041
928.41
610
490
476.25
462
371.88
364.9
350
325
318
298.34
283
276.13
272
242
226
210

25.68
22.47
32.05
27.92
8.89
27
27.62
3.65
16.96
88.17
196.8
26.19
9.82
3.76
107.26
-18.62
8.04
29.14
-15.76

BIOCON THE JOURNEY BEGINS

Collaboration

between Irish firm Biocon

International and kiran with kiran owning 70%
equity.

Started

Biocon India in 1978 from her garage with

initial capital of Rs. 10000.

During

next 15 years focused on Solid State

Fermentation.

Biocon

Secured a US Patent for reactor

know as Plafactor for the manufacture

of drugs.

VISION AND MISSION

Vision
To promote social and economic inclusion by ensuring
that marginalized communities have equal access to
healthcare services.

Mission
To be an integrated biotechnology enterprise of
global distinction.

BIOCON AND ITS SUBSIDIARIES

DR. KIRAN MAZUMDAR SHAW ENTREPRENEUR

Visionary
Innovative
Leadership skills
Risk averse
Market analyst
Self confident and
optimist

DR. KIRAN MAZUMDAR SHAW ENTREPRENEUR

Kiran Mazumdar-Shaw's pioneering efforts in biotechnology have

drawn global recognition both for Indian Industry and Biocon.
Her unique vision has steered Biocon's transition from an
industrial enzymes company to an integrated biopharmaceutical
company with strategic research initiatives.
Ms. Shaw is the recipient of several prestigious awards including
Best Woman Entrepreneur, Model Employer, Ernst & Young's
Entrepreneur of the Year Award for Life Sciences & Healthcare,
Leading Exporter, Outstanding Citizen, Technology Pioneer, etc.
Her most cherished award is however, the PADMASHRI (1989)
presented to her by the then President of India, for her pioneering
efforts in Industrial Biotechnology.

FEW MILESTONES ACHIEVED BY

BIOCON

1978 - Incorporated as JV-Biocon Biochemicals Ltd & Kiran Mazumdar-Shaw.

1979 - First Indian company to manufacture and export enzymes to USA and
Europe.

1996 - The commercial success of Biocon's proprietary fermentation plant leads

to a 3-fold expansion; enters biopharmaceuticals and statins.

1998 - Unilever agrees to sell its shareholding in Biocon to the Indian promoters.
Biocon becomes an independent entity

2000 - Establishes Clinigene, India's first Clinical Research Organisation (CRO).

2003 First company worldwide to develop human insulin (Pichia expression

system).

2006 - Inaugurates Biocon Biopharmaceuticals, India's largest multi-product

Biologics facility ; India's first anti-cancer drug, BIOMAb EGFR.

2008 - Biocon acquires 70% stake in German pharmaceutical company, AxiCorp

GmbH

2009 - Biocon launches BASALOGTM - long lasting basal insulin for Type 1 &
Type 2 Diabetics.

COMPETITORS
Wockhardt

Limited
Sun Pharmaceutical Industries Limited
Ranbaxy Laboratories Limited
Bharat Biotech International Limited
Dr. Reddy's Laboratories Limited
Oramed Pharmaceuticals, Inc.

BIOCON

PRODUCTS & SERVICES

ENZYMES
BIOPHARMACEUTICALS
Small Molecules

Biologicals

Dosage Forms

CLINICAL RESEARCH
CUSTOM RESEARCH

SWOT ANALYSIS

Internal Strengths
Biocons strength lies in consolidated skills in producing enzymes.
Another Biocons strength lies in its de-risked business model.
Biocon is US FDA Certified Company which gives it a wide scope to
enter global markets.
This company is also the market Leader in India which becomes its
one of the major strengths.
Its core competence in molecular biology is one of the strengths it has.
Internal low cost of clinical research gives it the power to stand and
fight with all the competitors in the market.
Last but not the least development of Oral Insulin is also one of its
major strengths.

SWOT ANALYSIS

Internal Weaknesses
80% of Biocons turnover comes from Statins which
also makes 45% of its revenues.
Biocons another major weakness lies because of its
capacity build up in CRO.
Moreover it also has the least expertise in final stage
which is very important.
Its marketing activities have been poor due to
investments in other activities of the company

SWOT ANALYSIS
External Opportunity
$82

billion worth global bbusters facing patent expiry

India Share of Global generic market Increased to 33%
from 4 %
Enzymes market growing at 6.5 %
Outsourcing to reduce cost
India preferred destination for clinical trails ( $70 million
20% Gr)
177 Mn ( G )/ 45 Mn (I) Diabetic Patients
9 million cancer cases
Entry of venture capitalist.

SWOT ANALYSIS
External Threats
Risk in drug discovery
Generics Market Being over crowded
Strict IP regulatory laws
Low cost Chinese Competitors
Intense Competion in CRO

PEST ANALYSIS

Political Factors

The Minister in charge of the industry has been threatening to

imposeeven morestringent Price Control on theindustry than
before.
Effective January, 2005 the country goes in for the IPR
(Intellectual Property Rights)regime, popularly known as the
Patent Act.This Act willimpact the PharmaceuticalIndustry the
most.
In Pharma industry there isa huge PSU segment which is
chronically sick and highlyinefficient.
.Effective the January,2005 the Governmenthas shifted from
charging the ExciseDuty on the cost of manufacturing to the MRP
thereby making the finished productsmore costly

PEST ANALYSIS
Economic Factors
India spendsa verysmall proportionofits
GDPonhealthcare (A mere1%).Thishas stunted
the demand and therefore the growth of the industry.
Per capita income of anaverage Indianis low ( Rs.
12,890), therefore, spending onthe healthcare takes
a lowpriority.
The incidenceofTaxes are veryhigh

PEST ANALYSIS
Socio-cultural Factors
Poverty

and associated malnutrition dramatically

exacerbate the incidence ofMalaria and TB, preventable
diseases that continue to play havoc in India
decadesafter they were eradicated in other countries.
Poor Sanitationand polluted water sources
prematurelyend the life of about 1million children
under the age of five every year.
Large joint families transmitcommunicable diseases
amongstthe members
Cattle-rearing encourage diseases communicated by
animals.

PEST ANALYSIS
Technological Factors
Advanced automated machineshaveincreased the
outputandreducedthe cost.
Computerization hasincreasedthe efficiencyofthe
Pharma Industry.
Advances inBio-technology, Stem-cell research
havegiven India a step forward.
Newer drug delivery systemsare the
innovationsofthe day

STRATEGY

Diversification rather than Expansion Sequential Growth

Strategy Adding interlinked Business.
Strategic alliances with Global Biotech firms as a way of
Sharing development cost.
PFIZER 2011
OPTIMER 2011
NOBEX CORP USA
Focusing on Molecular Biology - Fermentation rather than
Synthetic Chemistry to differentiate itself from
competitors.
Using Generics Platform to move into Drug Discovery.

STRATEGY

Innovation Led Strategy

STRATEGY

Split Business Technique

Syngene

Clinigene
Biocon

MARKET ANALYSIS

FINANCIAL ANALYSIS

FINANCIAL ANALYSIS

FINANCIAL ANALYSIS

FINANCIAL ANALYSIS

FINANCIAL ANALYSIS

FINANCIAL ANALYSIS
Biocons

net sales grew by 17% to

13,250,660 in 2010-11. Companys
domestic revenues from product sales have
increased by 25%, and exports sales have
increased by 8%.
The current assets, loans and advances
have increased by 18% over the previous
year.
The current ratio have increased by 8.5%
over the previous year.

BCG ANALYSIS
ENZYMES

ENZYMES

CLINIC RESEARCH

CLINIC RESEARCH

BIOPHARMACEUTICAL

BIO-PHARMACEUTICAL
CUSTOM
RESEARCH

CUSTOM RESEARCH

CONCLUSION
On the manufacturing front, the innovation efforts
should be directed towards delivering the highest
quality at the lowest cost.
On the services front, Syngene and Clinigene must
aim to compete by augmenting specialized skills to
deliver increasingly higher value services in a cost
effective manner.
On the research front, Biocon should pursue a strategy
that will deliver incremental and transformational
innovation in an affordable manner.
Underlying these efforts there must be an un-inching
commitment to operational excellence which is now a
prerequisite for global competitiveness.

THANK YOU