Ppt on Biocon
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Transcript of Ppt on Biocon
Submitted By:-Aparna VyasBarun KumarJayshree BhartiManoj DubeyRajesh KumarSaurabh MehtaManoj DubeyVeeresh 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, 2010In terms of Revenue
Ranking Corporation
1 Roche
2 Amgen Inc
3 Gilead Sciences Inc
4 Biogen Idec Inc.
5 UCB SA
6 Genzyme Corp
7 CSL Ltd.
8 Celgene Corp
9 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 Company Revenue Change over2009-10 (%)
2010-11 2011 (%)1 Biocon 1483 25.682 Serum Institute of India 1041 22.473 Panacea Biotec 928.41 32.054 Nuziveedu Seeds 610 27.925 Reliance Life Sciences* 490 8.896 Quintiles India* 476.25 277 NovoNordisk 462 27.628 Rasi Seeds 371.88 3.659 Mahyco* 364.9 16.96
10 Transasia 350 88.1711 Ankur Seeds 325 196.812 Syngene International 318 26.1913 Bharat Biotech * 298.34 9.8214 Indian Immunologicals 283 3.7615 Krishidhan Seeds 276.13 107.2616 Shantha Biotech* 272 -18.6217 Novozymes South Asia * 242 8.0418 Bharat Serums 226 29.1419 Jubilant Life Sciences 210 -15.7620 Eli Lilly 204 9.25
Notes: * represents BioSpectrum estimates
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
To promote social and economic inclusion by ensuring that marginalized communities have equal access to healthcare services.
Mission
Vision
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.
PRODUCTS & SERVICES
ENZYMES
BIOPHARMACEUTICALS
CLINICAL RESEARCH
CUSTOM RESEARCH
Small Molecules Biologicals Dosage Forms
BIOCON
SWOT ANALYSIS
Internal Strengths
Biocon’s strength lies in consolidated skills in producing enzymes. Another Biocon’s 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 Biocon’s turnover comes from Statins which also makes 45% of its revenues.
Biocon’s 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 b”busters 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 impose even morestringent Price Control on the industry than before.•Effective January, 2005 the country goes in for the IPR (Intellectual Property Rights)regime, popularly known as the Patent Act. This Act will impact the PharmaceuticalIndustry the most. •In Pharma industry there is a huge PSU segment which is chronically sick and highlyinefficient. •.Effective the January, 2005 the Government has shifted from charging the ExciseDuty on the cost of manufacturing to the MRP thereby making the finished productsmore costly
PEST ANALYSIS
Economic Factors India spends a very small proportion of its
GDP on healthcare ( A mere 1% ). Thishas stunted the demand and therefore the growth of the industry.
Per capita income of an average Indian is low ( Rs. 12,890 ), therefore, spending onthe healthcare takes a low priority.
The incidence of Taxes are very high
PEST ANALYSIS
Socio-cultural Factors Poverty and associated malnutrition dramatically
exacerbate the incidence of Malaria and TB, preventable diseases that continue to play havoc in India decadesafter they were eradicated in other countries.
Poor Sanitation and polluted water sources prematurely end the life of about 1million children under the age of five every year.
Large joint families transmit communicable diseases amongst the members
Cattle-rearing encourage diseases communicated by animals.
PEST ANALYSIS
Technological Factors Advanced automated machines have increased
the output and reduced the cost. Computerization has increased the
efficiency of the Pharma Industry. Advances in Bio-technology, Stem-cell research
have given India a step forward. Newer drug delivery systems are the
innovations of the 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
SyngeneClinigeneBiocon
MARKET ANALYSIS
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
Biocon’s net sales grew by 17% to 13,250,660 in 2010-11. Company’s 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.
ENZYMES BIO-PHARMACEUTICAL
CLINIC RESEARCH CUSTOM RESEARCH
ENZYMES BIO-PHARMACEUTICAL
CUSTOM RESEARCH
CLINIC RESEARCH
BCG ANALYSIS
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-flinching commitment to operational excellence which is now a prerequisite for global competitiveness.
THANK YOU